An economic blackout occurred on February 28 as consumers protested cuts to diversity, equity, and inclusion (DEI) initiatives. Research from Temple University indicates that silence from companies on contentious issues can lead to significant backlash. Studying 312 companies in the fashion industry during and after this event, it was found that those who did not speak out experienced decreased engagement. The research suggests that public neutrality is increasingly perceived negatively by stakeholders, highlighting a shift from the traditional belief that silence can safeguard corporate interests.
When a subject is so salient to the public, the possibility for neutrality disappears, and stakeholders will increasingly interpret silence as derision.
The effects we discovered are substantial and imply that the classic notion that firms can be protected by staying silent on sociopolitical issues may no longer hold in today’s world.
Liberal stakeholders who support an issue will be more likely to presume that a silent niche firm has a liberal stance. Conservatives will be more likely to presume that the firm has a conservative stance.
Silent mass-market businesses also suffered larger declines in consumer support, indicating that non-participation in social issues can significantly impact brand loyalty.
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