After a contentions presidential election, Americans still remain bitterly divided in "red" or" blue" camps.
Team Red is euphoric, maybe even over-the-moon orgasmic, while Team Blue is despondent to the point of leaving the country. (See Eva Longoria and Ellen DeGeneris if you are skeptical of this assertion.)
Some hyper partisans even opted not to break Thanksgiving Day bread with family members who voted for the opposing party!
Whether we're in the office kitchen or doom-scrolling through social media, discussions often stray into dicey realm of political territory. As a business owner and entrepreneur, I've learned from experience that mixing politics with business is akin to adding kerosene to a raging forest fire.
Here are my top four "Reality Checks" you need to consider to stay neutral regarding political statements, causes, and opinions in your business.
Reason 1: It Alienates Customers
Taking a political stance can significantly alienate customers. Research once showed that 71% of consumers prefer to shop with brands that share their values. However, can your business afford to turn away 29% of your customers who take an opposing view to your political endorsement?
Moreover, customers attitudes are shifting towards practicality and neutrality.
CNBC's Jim Kramer suggests once powerful brand loyalty is being supplanted by customers demands for greater value for their hard earned cash, “Prices have gotten so high over the past few years that we’re losing our loyalty to brands,” Kramer said. “These days, this whole country is about one thing: The Benjamins.” Source: Mad Money with Jim Kramer from cnbc.com.
https://www.cnbc.com/video/2024/11/20/this-country-is-value-conscious-sand-many-companies-are-getting-left-behind-says-jim-cramer.html
According to a new survey conducted by Gallup and Bentley University, only 38% of consumers are cool with businesses taking public stances on current events. Even with 53% of Democrats condoning businesses speaking out current events, that's still a precipitous 22% drop from just 2 years ago in 2022!
By remaining politically neutral, entrepreneurs can concentrate on what truly matters: providing an excellent, inviting, and convenient experience for my customers. This approach creates an environment that welcomes individuals from various backgrounds, enriching the overall business experience. A diverse customer base not only enhances brand loyalty but can also lead to a 15% increase in repeat customers over time.
Consider the many people who interact with my products or services daily; each has unique perspectives. Aligning with a particular political ideology could easily lead to lost sales. Look no further than the unbelievably disastrous Bud Light campaign with former social media phenomenon, Dylan Mulvaney.
As a rising social media star on TikTok and Instagram, Mulvaney received multiple brand endorsements, including one from Bud Light to promote an online contest.
Why did this “innocent”, progressive collaboration ignite such an enormous backlash over a lame contest?
Dylan Mulvaney is transgender and dresses like Audrey Hepburn.
Bud Light has long been marketed as a blue-collar, middle America brand - with a large subsection of fraternity men as rabid consumers.
While prejudice could be a latent factor in this hullabaloo, on the surface, this is horrible target demographic marketing at best…and a lamentable culture clash at worst!
What do horny fraternity, cornfed boys from Iowa have in common with a flamboyant transgender progressive from the NYC?
Nothing.
Dylan Mulvaney was the wrong spokesperson for the wrong brand at the wrong place and time.
Mr. Magoo could have seen this sh*tstorm a mile away! Culture Clash Consequences The Bud Light backlash became a mainstream lightning rod for the frontline of Transgender rights controversies. Conservative media excoriated Bud Light for being “woke”. Late night comics roasted everybody involved. Social Media influencers had podcast and YouTube content for weeks!
Wait, there’s more…this clusterf*ck had other far-reaching, ripple effects!
Sparked a boycott: The promotion triggered a backlash from conservatives celebrities, including singer Kid Rock, who called for a boycott of Bud Light and Anheuser-Busch by shooting up Bud Light cases in his backyard; which also went viral!
Led to a loss of sales: Bud Light's sales fell between 11 and 26% in the month following the promotion. In May, Bud Light lost its status as the top-selling beer in the United States to Modelo Especial.
Damaged the company's reputation: Bud Light was criticized by some in the LGBTQ+ community for its tepid response to the backlash. Mulvaney said that the company's choices endangered the LGBTQ+ community.
Cost the company money: CNN estimates that Anheuser-Busch InBev may have lost as much as $1.4 billion in sales because of the boycott.
Affected the company's stock price: In May 2023, AB InBev's stock price fell 20%.
Led to layoffs: The company cut about 2% of its US workforce. By contrast, neutrality allows entrepreneurs to cultivate an inclusive environment where customers feel comfortable and valued. Side Benefit: You avoid hornet's nests like the Dylan Mulvaney - Bud Light fiasco.
Reason 2: Creates a Productive Work Environment
Politics can often lead to division within teams, affecting overall productivity. In my experience, workplaces that engage in political discourse tend to see lowered collaboration and morale. A study from the Harvard Business Review noted that teams divided by political opinions can see up to a 40% decrease in efficiency.
By steering clear of political discussions, I ensure a more harmonious work environment. My team can focus on our common goals - like making money - rather than getting sidetracked by debates outside of our business. This productive atmosphere leads to higher creative output, better teamwork, and a stronger sense of community within the office.
In my business, avoiding political conflict has fostered a positive workplace, resulting in improved employee satisfaction and a 25% increase in project completion rates.
Reality Check 3: Protects the Brand's Image
Your brand's reputation is delicate and can be easily harmed. Engaging in political discussions or unwittingly straying into negative racial portrayals (while seeking to improve minority mainstream visibility) can lead to swift and severe public backlash, impacting customer loyalty.
For example, following a controversial political statement, retail company H&M, saw a 30% decline in social media engagement and lost hundreds of thousands in revenue due to TONS of negative comments over their 2018 "Coolest Monkey in the Jungle" campaign.
High Profile Brand Damage
Below are 2 examples of huge, multinational companies caught up as casualties in a political crossfire that had severe financial and reputational consequences.
R&B Superstar The Weeknd's tweet below describes the response of many in the African American community when he got wind of a regrettable H&M campaign - that was supposed to foster inclusivity and representation.
NBA legend, Lebron James was so outraged, he mocked up a new H&M campaign to scratch out the offensive phrase, “Coolest Monkey in the World” on his own time and dime - and blasted H&M to the world.
The whole ordeal cost H&M hundreds of thousands of dollars in revenue, a 30% drop-off in social media engagement, and awful mainstream publicity that gave the company a ginormous, public relations black eye. Even the iconic Disney company got into hot water with Florida Governor Ron DeSantis over it's oppositional stance on the misnamed "Don't Say Gay" bill. LGBTQIA+ activists felt Disney was silent too long on the bill and started a bruhaha on social media that trended worldwide. Disney employees walked out in protest. Then, Disney yielded to the outcry from the LGBTQIA+ community and denounced DeSantis's bill. This resulted in a bitter yearlong, public dispute with DeSantis - with Disney walking away from reaping a mind-boggling $570 million in tax credits. As you can clearly see, even presumably well-meaning attempts at improving representation, supporting diversity, and trumpeting inclusion for a brand, can spectacularly backfire to the tune of a public firestorm involving celebrities, massive profit loss, powerful political enemies and brand damage that could take years to rectify!
Staying clear of politics allows brands to maintain a positive image and adapt easily to shifts in market trends. As consumer preferences evolve, entrepreneurs need to pivot quickly without being associated with past political statements.
A consistent brand image results in lasting customer relationships. Keeping politics at bay creates a lasting impression based on the quality and service my company offers rather than political stances.
Reason 4: Allows for Flexible Networking Opportunities
Networking is vital for any entrepreneur and can create significant growth opportunities. However, strong political opinions can limit potential partnerships. If I express a strong stance by leaning hard into either the Democratic or Republican platforms, I risk closing doors on individuals or organizations that think differently, which would cost me money and opportunity. Entrepreneurs don't need to give prospective suppliers, investors, or customers another reason to say "no" to them!
Positioning myself as neutral or "business first" enables collaboration without the tension political views can introduce. This openness encourages an environment where diverse perspectives and disparate values can be empathized with, leading to more extensive networking connections. In my career, I've found that valuing relationships based on shared goals rather than political views fosters more meaningful partnerships—often leading to increased opportunities for growth.
Strategic Approach to Business
In a world increasingly influenced by politics, it’s tempting to engage in the fray. However, I've found that for entrepreneurs and job seekers, keeping politics out of business yields greater benefits. Why upset half of your customer base in an instant? Can your business survive such a loss? By fostering an inclusive environment, enhancing productivity, safeguarding brand reputation, and promoting expansive networking, entrepreneurs can concentrate on what really matters—delivering value and exceptional experiences for their customers.
Choosing to remain neutral is not an indication of indifference but a strategic understanding of my business dynamics. It allows me to focus on growing a thriving business that serves individuals from all backgrounds, regardless of their political beliefs. By adhering to this philosophy, entrepreneurs can continue to build a sustainable and successful business, flexible and ready to meet the challenges of our ever-changing market. Until the lines between politics and business may eventually blur, please confidently maintain a neutral stance. Forget "Team Red" and "Team Blue", the only team new entrepreneurs should care about is "Team Green" - and how much of it is in your bank account!
Kommentarer