Crisis Management Expert Slams Companies That Take Bold Stands

The battle lines in the culture wars aren’t necessarily restricted to street protests, voting booths, or internet social media platforms.

Increasingly, U.S. businesses are taking robust positions on hot-button social issues, that, if mishandled, can devastate their bottom lines.

Don’t Miss: Target’s Latest Partnership Has Customers Swearing Never to Return

Take Anheuser-Busch InBev  (BUD) - Get Free Report -- which experienced a 25% drop in Bud Light sales in the week ending May 13, compared to the same period in 2022. The sales decline resulted primarily from a nationwide beer drinkers’ backlash to the company’s decision in March to partner with Dylan Mulvaney, a high-profile trans influencer and, in the words of a key company marketing executive, get away from Bud Light’s “fratty, out-of-touch” image.

Anheuser-Busch’s market value has fallen by $15.7 billion from April 1 and Wall Street analysts are souring on the company’s stock, which has fallen by 14.4% in the past 30 days.

Then there’s Target.  (TGT) - Get Free Report

The big box retailer is reeling after wading into the culture wars with an apparel line that was introduced as part of Pride Month. It immediately drew criticism from some conservative consumers.

Within days Target was forced to remove some of the apparel from company floor spaces after the company said the aggressive response from customers objecting to the product line has resulted in a safety issue for employees.

“Given these volatile circumstances, we are making adjustments to our plans, including removing items that have been at the center of the most significant confrontational behavior,” a company spokesperson said on May 24.

The company’s stock price has fallen 9.1% in the past five days, as the company seeks to avoid further public relations damage.

Now, business crisis consultants are weighing in on the high price a company can pay if they take a stance on a social issue, without considering how its customer base will react.

“One of the things you have to understand about a company is they want everyone to love them,” said Eric Dezenhall, chief executive officer at Dezenhall Resources, a crisis management consulting company. “But now they’re in the politics business where you don’t get everybody – you just get 50%.”

Appearing on CNBC’s Squawk Box on May 25, Dezenhall alluded to personal agendas inside companies that, left unaddressed, can result in negative publicity from both sides of the political aisle.

In the interview he insisted that it's a myth the market is driving woke policies.

He says a small number of people in advertising and marketing departments are generating personal agendas and “are going to management and positioning their personal views” while emphasizing those views “are what’s good for the company,” Dezenhall noted. “Yet most marketing people are treading lightly and are not having these problems."

Additionally, some companies can go ahead and take moral stands because that’s what their customers want – but most businesses can’t, Dezenhall said.

“Nike can take controversial positions because that’s their audience,” he noted. But most companies shouldn’t “provoke a large portion of their customer base like Anheuser-Busch and Target have done.”

Dezenhall also told Squawk Box some of the social positions taken by companies aren’t just ticking off the usual suspects these days.

“Some moderates are whispering in people’s ears they’re having problems (with companies), too,” he added. “But nobody wants to go on CNBC and tell you why.”