Companies facing “anti-woke” attacks must stand up for their values

Language is being weaponized to intimidate companies. It is essential for business leaders to clearly communicate who they are, what they stand for and how they’re putting their values into practice, says Fenton’s Rachel Henderson Eliff.

By Rachel Henderson Eliff, Fenton

Seemingly every day, there is another headline about an attack on companies for being “woke.”?

Conservative politicians, media outlets and online influencers are weaponizing terms like diversity, equity and inclusion, environmental social and governance and corporate social responsibility to intimidate companies that want to be more sustainable, inclusive and representative of the communities they serve.

Many business leaders are concerned about the implications of communicating in this environment. But they cannot and should not fear public pressure and criticism of social good initiatives that benefit their businesses, employees, customers and communities. Holding true to their values is the right thing to do, for both society and their bottom line.

The research on the business impact of DEI policies is extensive. McKinsey & Company found that companies in the top quartile for ethnic and racial diversity were 36% more likely to experience above-average profitability. Diverse companies show higher rates of innovation, productivity and employee engagement. When businesses make an investment in DEI, it is just that — an investment — one with a return on investment that has both societal and financial benefits.??

The same is true of ESG — evaluating companies by how they do business and the impact they have on their communities and the planet. A recent University of Southern California survey found that nine out of 10 investors and 70% of consumers and employees say businesses “have a responsibility to play a role in addressing societal problems.” The majority of all three groups agreed ESG ratings are useful in making investment, purchasing or employment decisions.

These results shouldn’t come as a shock — companies that are representative of the communities they serve understand and communicate with them better. Employees are loyal to companies that value them. Businesses succeed more often when the customers and communities they serve are thriving.?

Read the full article at PRWeek.