With the many things that the year 2020 has brought the world, there is no doubt that this year will be one that will go down in history, with the Covid-19 pandemic being the greatest event to effect world economies in decades. However, with the murder of George Floyd, a movement erupted with the aim of ending injustices faced as a result of racial discrimination, especially in the United States where the event happened, but also worldwide, where there are still many issues of inequality to date. Despite this being a fight for equal rights for black, Asian and minority ethnic individuals (BAME), it has also affected the commercial sector, especially looking at the reactions (both verbal and actionable) of major companies, showing just how important the movement is.
Company Responses to the Movement
Due to the importance of the issue, companies were pressured by all parts of their structure, be it shareholders, employees or the public, to make a statement. Nike, the popular sports and footwear company, posted a video on Instagram with a play on words of their slogan ‘just do it’, instead saying ‘for once, don’t do it’, as well as pledging $40 million in support of the movement. However, the company has still faced criticism due to their lack of diversity in the higher levels of the company. The issue with company responses to the movement is whether it is just a level of brand activism, where companies say what the public want to hear in order to get them to still buy their products. Surveys have previously shown in 2018 that 64% of consumers are more likely to buy from a brand based on where it stands in political and social issues they care about, which is why actions as opposed to statements of companies are of paramount importance.
The Power of a Company to Make a Change
Above: FedEx Field, Stadium of a Washington NFL team, named as such as FedEx are one of their biggest sponsors.
The American football team formally known as the ‘Washington Redskins’ controversial name has recently been changed due to pressure from their sponsors, including FedEx, Nike, Bank of America and Pepsi. The owner, Dan Snyder, had previously been adamant about never changing the name, and it was only due to the unrest in society after George Floyd’s death in May that his hand was forced. This change, however, probably would never have happened if the sponsors hadn’t threatened to withdraw their deals, which shows just how much power these companies wield. Public opinion on the name has long argued about the racial connotations, especially where the logo is of a native American, but this change has only occurred due to the companies willing it so. The influence companies such as these sponsors is clearly great, especially in the United States, but the question then follows that if they can do this, can they create the change in government and law that has been asked by protestors? Or are company actions just an example of them jumping on a trend for popularity of their products?
Changes Within the Company
Besides the public changes and statements already discussed in this article, there have also been changes behind the scenes in companies, with regards to equality in the workplace and senior leadership teams. For example, Adidas have announced that they will ‘fill 30% of all new positions in the US […] with Black and Latinx people’, which means there will be more opportunities for advancement in the company. However, it is here that we must analyse how the public statements many large companies have made will actually make a change to equality and opportunity within their company. For example, Nike’s video mentioned earlier showed their support, which is a crucial thing to do, but should only be the first step. Their most senior leadership team are made up of only white individuals, despite their partnering with many black athletes and their customer base being made up of many black individuals. This is where the supportive social media campaign needs to infiltrate the structure of the company to actually make a difference to equality in the workplace for BAME individuals, as tweets or Instagram posts will not aid in the inequality at the highest levels of the company.
In a more notable change, the CEO of Reddit, who was a white male, stepped down so that he could be replaced by one of his board members, who was black, promoting the movement in the highest position of the company. This is an important change to promote diversity and inclusion, as data shows that as of the 16th July 2020, of all FTSE 100 companies in the United Kingdom, one third of them have no black board members, and only one of the companies has a black CEO. In addition, in the United States only four of the CEO’s in their fortune 500 companies are black. Even though the lack of appointment of BAME individuals may not be racism in the most oppressive use of the word, it still shows a clear inequality in many positions of power in companies, which is something that still needs to be combatted, and actions like this are an example of ways to do this.
Conclusion
There is no doubt that this fight for equality in the eyes of the law has transitioned into a need for equality in the workplace, and this is where companies will need to start restructuring their most powerful positions. As far as words and social media campaigns have got some companies, it is only when actions are taken that real change can start to be seen. The power of a company is clearly a force to be reckoned with, as seen with the sponsors of the NFL team, so perhaps this movement means it is finally time for them to start implementing the change they post about supporting, starting with diversity, equality and inclusion at the highest levels.
Darcy Still is an LLB law graduate with first class honours from the University of Winchester and is beginning her LPC with LLM at the University of Law in September. In her time at Winchester, she was an active member and PR of the Rounders team. She loves dogs, playing the piano and football.
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