How will the Black Lives Matter movement impact your business?
It all depends on you and your reaction. As we move through the movement, and we educate ourselves along the path of enlightenment – away from racism (I feel like I don’t need to spell that out, but just in case, it’s there). We are beginning to see the impacts being open about your journey as an individual or as a business can have.
While corporate social responsibility (CSR) has been a growing trend in the past 5 years, now more than ever it’s time to show your true colours whether you like it or not. Both what you say and what you don’t say right now will reveal everything to the public. It’s not easy, there will be mistakes made, but we all need to try and move forward together.
In the last 2 weeks CrossFit has gone from a USD$4B business with 11,000 CrossFit affiliated gyms worldwide. To an example of how the inability of leadership to read the importance of the BLM can destroy a brand. On 7 June Greg Glassman posted a tweet mocking racism as a public health issue (below). Three days later he resigned as CEO of the US fitness brand.
It has also been reported that he openly declared on a video call that he was not mourning for George Floyd and asked for a reason why he should. Read more about that here. Then hours later he posted the tweet that served him and his brand a negative tirade:
Institute for Health Metrics and Evaluation@IHME_UW
Racism and discrimination are critical public health issues that demand an urgent response. #BlackLivesMatter
Read our director’s statement: http://www.healthdata.org/about/racism-public-health-issue …
It's FLOYD-19.
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It's FLOYD-19.
Your failed model quarantined us and now you're going to model a solution to racism? George Floyd's brutal murder sparked riots nationally. Quarantine alone is "accompanied in every age and under all political regimes by an undercurrent of suspicion, distrust, and riots." Thanks!
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Given CrossFit is a health brand dedicated to improving wellbeing and fitness around the world, the tweets come across as completely insensitive and what you’d think would be off-brand. This added to the position of CrossFit not to comment on the BLM movement at all fuelled the negative response from their community and partners. In the days since the tweet the impact on the CrossFit brand have been numerous. They have lost brand sponsors such as Reebok. In the first 24 hours over 100 gym affiliates announced they would no longer retain their CrossFit affiliation. High profile brand ambassadors have announced they will can no longer be associated with the brand or compete in the CrossFit Games. And countless individual gym members have publicly announced they are cancelling memberships. The fall out has been huge.
It’s important to note that racism isn’t the only issue brought to light regarding Greg Glassman, there has also been reports regarding his inappropriate derogatory and sexually explicit behaviour. For more on that read this article or listen to this podcast.
Now, let’s contrast this with a positive and thoughtful response from another global brand, Glossier. It’s no secret they are one of our favourites, not only have they nailed their product offer, they win time and time again in the branding game – if you want an example of how to create a winning brand in today’s market this organisation should be your go to example for Brand Strategy 101.
The beauty industry has been at the fore of the ‘corporate response’ to the BLM movement not surprisingly due to the nature of their branding and imagery that gives a direct window to their diversity politics whether intentional or not. Glossier has not just made a statement but are fronting up USD$1 million to the cause, to both support organisations fighting to end systemic racism and to fund black owned beauty businesses in the form of grants. Amazing. The fall out of this action has equally been huge, but in stark contrast to CrossFit it has been overwhelmingly positive.
That $1million Glossier are donating to BLM & black businesses will not go unnoticed. They’ve gained a lifetime customer & i’m making my first purchase rn.
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this is the first major company i’ve seen actually giving back to our community. not a post, not a hashtag, but donating actual funds to racial justice organizations AND black-owned businesses. we love to see it @glossier
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While the examples contained in this article are from the US, it is absolutely not a matter just for American companies. This is a global crisis and we are in the midst of an awakening. It is important for all businesses in Australia and globally to take a look at their culture and policies whether overt or simply implied through the actions of leadership from the executive to the store level. Our society, your customers and employees, are each looking at this situation through their own lens, how you respond (whether proactively or through silence) sends them a clear message. And, your brand cannot exist without loyal fans both as customers and team members.
So, remember the time honoured saying “actions speak louder than words”. What will you say and more importantly what will you do to align your brand to the right side of history? Let’s all to work together to create a stronger society.