A man you’ve probably never heard of has managed to scare away virtually all of corporate America. And Wall Street has created a new cottage industry around that fear.
Former music video director Robbie Starbuck turned his social media accounts into a weapon against companies’ DEI efforts, inciting frenzy, threatening boycotts, and attacking companies’ diversity, equity, and inclusion efforts. The company was inundated with negative media mentions. Tractor Supply scaled back its DEI efforts in June after Starbucks tweeted that it was “time to expose” the hardware store chain. John Deere followed suit in July and Harley-Davidson in August, both under public pressure from Starbucks.
Wall Street law firms and the telecommunications industry are now building their businesses around preparing companies for a Starbuck attack. This method reflects how we prepare for cybersecurity attacks. That means conducting a vulnerability assessment, compiling a research report, and creating a plan for what to do if Starbucks comes calling.
This intense scrutiny gets to the heart of the problem facing American companies. After many companies have introduced and promoted initiatives to improve diversity, equity, and inclusion, often citing research that shows business benefits, companies are now I am worried about how to deal with the backlash in such cases. Both customers and management are divided over policy.
Investors also disagree. The New York City Comptroller’s Office, which oversees the powerful New York State Employees’ Pension Fund, has already threatened to sue executives if they make too many concessions.
“As a company, you could be in a tough spot,” said Kai Riekefett, co-chair of the corporate defense practice at law firm Sidley Austin. “Anti-DEI activists and DEI activists are clashing. And you’re basically just a battleground in a culture war that’s being waged within corporate America.”
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