Several “woke” corporations have been put on alert with their CEOs now living in fear after Florida lawmakers recently pulled Disney’s special privileges in the state, a new report has revealed.
Florida’s Republican Gov. Ron DeSantis dealt a severe blow to Disney after the company’s leftist leadership opposed the state’s parental rights legislation.
The company pushed back against the legislation by smearing it with false claims, even going as far as to launch a campaign seeking to promote sex-change treatments for children, in direct conflict with the governor’s agenda.
In response, DeSantis declared that โDisney is a guest in Floridaโ and signedย legislation to end the Reedy Creek Improvement District โ a 39-square-mile special governing and tax district that hosted Disney World while allowing Disney toย avoidย certain state taxes and regulations.
According toย The Wall Street Journal, CEOs are now asking how they can steer clear of the same outcome for their own firms.
โThe No. 1 concern CEOs have is, โWhen should I speak out on public issues?โโ former Medtronic CEO and current Harvard Business School senior fellow Bill George told the outlet.
โAs one CEO said to me, โI want to speak out on social issues, but I donโt want to get involved in politics.โ
“Which I said under my breath, โThatโs not possible.โโ
The Wall Street Journal noted that some executives may feel a sense of relief, as they can focus on maximizing shareholder returns while staying away from raging political debates.
Indeed, corporate governance lawyer David Berger told the outlet that lawmakers are growing in their willingness to take on business when it is advantageous for them.
โIt used to be that Republicans especially โ but both parties โ liked big business,โ he explained.
โAnd now what youโre seeing is both parties like to use big business as political footballs one way or the other.โ
Julie Schertell, the CEO of Georgia-based manufacturing company Neenah, said that โprobably anybody sitting in a leadership roleโ is following the Disney situation โto some degree.โ
โBecause I want folks to assume positive intent, like โHereโs what weโre trying to do, and if it feels like a misstep, letโs talk about that. And of course, correct on it,โโ she said with respect to considering employeesโ concerns.
Ron Williams โ the former chairman of Aetna who now sits on the boards of Boeing, Johnson & Johnson, and American Express โ explains that navigating politics is a โchallenging jobโ for executives.
โCompanies often deal in substance, and politicians often deal with foils,โ he said.
โAnd so, you know, companies can inadvertently become a foil for different political issues.
“Itโs not enough to know what you want to do.
“You have to be artful in how you do it.โ
After crafting the firmโs initial response to the parental rights legislation, Disney communications chief Geoff Morrellย leftย his job following the Florida debacle.
โAfter three months in this new role, it has become clear to me that for a number of reasons it is not the right fit,โ Morrell said in a letter.