Now, woke CEOs everywhere seem to get the message from Florida Gov. Ron DeSantis that if they go woke, they will end up like Disney.
Over the past few weeks, during private meetings and coaching sessions, top business leaders have been asking a version of the same question: How can we avoid becoming a woke Walt Disney Co.? Well, the answer is simple, just mind your own business and stop mingling with politics.
Recently, DeSantis declared that “Disney is a guest in Florida” and signed legislation to end the Reedy Creek Improvement District after Disney leadership opposed parental rights legislation in Florida.
This legislation is long overdue, this 39-square-mile special governing and tax district hosted by Disney World allowed Disney to avoid certain state taxes and regulations should have been scrapped a long time ago.
Meanwhile, CEOs are now asking the question of how they can steer clear of the same outcome for their own firms, The Wall Street Journal reported.
Former Medtronic CEO and current Harvard Business School senior fellow Bill George said:
“The No. 1 concern CEOs have is, ‘When should I speak out on public issues?’” As one CEO said to me, ‘I want to speak out on social issues, but I don’t want to get involved in politics.’ Which I said under my breath, ‘That’s not possible.’”
Some executives may feel a sense of relief, as they can focus on maximizing shareholder returns while staying away from raging political debates, The Wall Street Journal noted.
Indeed, corporate governance lawyer David Berger told the outlet that lawmakers are growing in their willingness to take on business when it is advantageous for them.
He explained:
“It used to be that Republicans especially — but both parties — liked big business. And now what you’re seeing is both parties like to use big business as political footballs one way or the other.”
More details from the Daily Wire report:
Julie Schertell, the CEO of Georgia-based manufacturing company Neenah, said that “probably anybody sitting in a leadership role” is following the Disney situation “to some degree.”
“Because I want folks to assume positive intent, like ‘Here’s what we’re trying to do, and if it feels like a misstep, let’s talk about that. And of course, correct on it,’” she said with respect to considering employees’ concerns.
Ron Williams — the former chairman of Aetna who now sits on the boards of Boeing, Johnson & Johnson, and American Express — explains that navigating politics is a “challenging job” for executives.
“Companies often deal in substance, and politicians often deal with foils,” he said. “And so, you know, companies can inadvertently become a foil for different political issues. It’s not enough to know what you want to do. You have to be artful in how you do it.”
After crafting the firm’s initial response to the parental rights legislation, Disney communications chief Geoff Morrell left his job following the Florida debacle. “After three months in this new role, it has become clear to me that for a number of reasons it is not the right fit,” Morrell said in a letter.
Sources: DailyWire, The Wall Street Journal
When politics overwhelm business objectives, including “diversity”, “Inclusion” and “equity”, compete with shareholder and investor interests, businesses exceed their competence and responsibility. WOKE CEOs will pay a high price, just as has (and should) Disney!