+ Nike: The First Mover
Nike led the charge on brand advocacy for Black Lives Matter back in 2018, making Colin Kaepernick the face of a new ‘Just do it’ campaign with the messaging: ‘Believe in something. Even if it means sacrificing everything.’ This decision was not without controversy: some customers called for a boycott, some burned their Nike sneakers on social media, and shareholders dumped stock.
But these were the vocal few. After the ads premiered, sales soared and Nike saw a $6 billion increase in overall value in a one month period. Within one quarter, the stock price had rebounded to a record-high. These numbers are proof that customers support brands that lead on crucial issues of social justice when it is relevant and authentic. Stockholders at the top will simply follow the money.
The Nike case study teaches us that consistent bold and vocal action creates a foundation of authenticity and trust. In May 2020, when Nike released its ‘For Once, Don’t Do It’ campaign, reactions were more positive and less controversial - with consumers rating the commercial 98% more empowering than other ads.
+ Pepsi: The Redemption?
In 2017, PepsiCo put out a commercial featuring Kendall Jenner which was criticized for ‘wokewashing,’ making light of the Black Lives Matter protests. Backlash was quick and severe from both customers and the press. Pepsi immediately pulled the commercial and issued an apology.
Pepsi learned the hard way that virtue-signaling is quickly called out. So, in 2020, when CEO Ramon Laguarta shared a statement of solidarity with Black Lives Matter he included a three-pronged plan on how they plan to fight racism within and outside of the organization. This plan focuses on People, Business, and Communities; each portion includes actionable items with a timeline so that customers and employees can hold Pepsi accountable.
The Pepsi case study is a cautionary tale that words should always be backed up with genuine and tangible action.
+ VailResorts: The Introspective
On June 2, 2020, the CEO of Vail Resorts, Rob Katz, sent an open letter to all employees that was then posted publicly on the company’s website and shared with the media. In this letter, Katz acknowledged the fact that “our Company and our sport are overwhelmingly white” and “If we genuinely want to address racial inequality, let’s start by talking about what part we play in it – not just make statements about how others can do better.”
This letter served as a starting point for action: an honest assessment and a commitment to action, even if the specific actions are still being researched and planned. Following the publication of this letter, other ski resorts followed in Vail’s footsteps to begin genuine company conversations around racial equality and the Black Lives Matter movement.
The Vail Resorts case study is a good example of how any brand, even if they are not already an expert voice in the cause, can start taking action with introspection and genuine intent.
