The phrase “go woke, go broke” has become a popular cautionary slogan among critics who believe that companies paying too much attention to social justice or progressive causes risk alienating their customer base. Here’s a look at 20 U.S. companies that faced backlash after taking stands on various issues.
1. Bud Light
In April 2022, Bud Light faced a boycott after partnering with transgender influencer Dylan Mulvaney. The backlash led to a significant dip in sales, with some reports suggesting a market share decline of up to 30% in the weeks following the partnership announcement. Bud Light’s stumble in the market turned into a headlong plunge.
2. Target
Target’s April 2016 transgender-friendly bathroom policy resulted in a fierce conservative backlash and a boycott that led to a $10 billion loss in market value within a few months. Target’s progressive stance cost it dearly, making it a cautionary tale in retail.
3. Starbucks
Starbucks took a $12 million hit on just one day in April 2018, closing its stores for racial-bias training after a racial profiling incident. The decision was a PR move that brewed more controversy than reconciliation.
4. Nike
Despite experiencing a temporary stock dip after featuring Colin Kaepernick in 2018, Nike’s sales surged by 31% the following weekend. However, the initial drop wiped out about $4 billion in market value overnight, proving there’s a price for every stance.
5. Dick’s Sporting Goods
After Dick’s Sporting Goods banned assault-style rifles and raised the gun purchase age to 21 in February 2018, its same-store sales fell by 3.9% that quarter, translating to millions in lost revenue. Taking a stand on gun control shot holes in its earnings.
6. Gillette
Gillette faced a storm of criticism for its January 2019 campaign against toxic masculinity. The backlash contributed to an $8 billion write-down by parent company Procter & Gamble, a razor-sharp reminder that not all publicity is good publicity.
7. Ben & Jerry’s
Ben & Jerry’s faced accusations of antisemitism and significant boycotts after deciding to halt sales in the Occupied Palestinian Territories in July 2021. While the full financial fallout remains uncertain, the churn in public opinion was instantly clear.
8. Delta Air Lines
When Delta discontinued NRA member discounts in April 2018, it faced a swift backlash, including the loss of a lucrative tax break from Georgia worth millions. Sometimes, standing up means profits go down.
9. Papa John’s
After its founder’s comments against NFL player protests in November 2017, Papa John’s stock fell 5%, and the founder resigned. The company learned the hard way that mixing pizza with politics can leave a bad taste.
10. ESPN
ESPN’s perceived political bias and mishandling of personnel decisions led to a loss of over 2 million subscribers in 2017. The network’s fumble cost it dearly in both viewers and credibility.
11. H&M
H&M’s 2018 misstep with a racially insensitive advertisement saw the brand’s sales slump in the following quarters. The fashion retailer’s attempt at damage control couldn’t patch the hole in its reputation.
12. MLB
The MLB faced heavy criticism and some calls for boycotts after moving its 2021 All-Star Game from Atlanta in response to Georgia’s controversial voting laws. The move was intended as a stand for voting rights but ended up striking out with segments of its fan base.
13. Netflix
Netflix saw a significant subscriber backlash after the release of the 2020 film “Cuties,” which was criticized for sexualizing young girls. The controversy briefly caused Netflix’s stock to dip, shedding billions in market value.
14. Goya Foods
After the CEO praised President Trump in July 2020, Goya Foods faced a boycott from consumers opposed to the administration. The company’s sales saw fluctuations, reflecting the divided political climate.
15. Lush Cosmetics
Lush Cosmetics faced backlash for its aggressive environmental and social justice campaigns, which some consumers felt were overzealous and off-putting. The result was a decline in customer loyalty and reported dips in sales.
16. Under Armour
Under Armour experienced a stock plunge and consumer boycotts after its CEO made favorable comments about President Trump in 2017. The athletic wear company learned that in a divided America, every endorsement counts.
17. Chick-fil-A
Chick-fil-A’s longstanding controversy over its donations to anti-LGBTQ groups has seen periodic boycotts and protests, affecting its brand image and expansion into more liberal markets.
18. Wayfair
Wayfair employees staged a walkout in 2019 after the company sold furniture to migrant detention centers, leading to a brief but sharp decline in stock value. Wayfair’s complicity in controversy did not sit well with socially conscious consumers.
19. AT&T
AT&T faced calls for boycotts after revelations that it had funded far-right conspiracy broadcaster OANN. The telecom giant’s association with controversial media outlets led to customer churn and reputational damage.
20. MyPillow
MyPillow’s CEO’s staunch support of Trump and promotion of election falsehoods led to product boycotts and store chains dropping the brand, showcasing the risks of a CEO’s public political stances intertwining with brand identity.
So, Was It Worth It?
Did these companies pay too high a price for their principles, or is there hidden value in standing by their stances? What’s your take—are these moves business blunders or badges of honor?
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