Business
Backlash To Woke Corporations
Kid Rock blasts case of bud light
From the Daily Caller News Foundation
It was a warning shot that went unheeded, and now it is costing major corporations dearly. Following a last year’s Supreme Court decision on affirmative action in higher education, 13 Republican state attorneys general fired off a letter to Fortune 100 companies questioning their similar corporate policies. Now, many companies wish they had paid closer attention.
In the past few months, conservative activist Robby Starbuck’s social media campaign has swept through major corporations wreaking so much havoc that companies have begun folding to his demands before they are even targeted. The result? Damaged market capitalizations, tarnished reputations, and ire and frustration from consumers and activists on both the Left and Right. Welcome to the latest manifestation of our post-Bud Light era in which every company remains a Target.
Starbucks’ campaign and the attorneys general’s scrutiny that preceded it are part of the growing right-wing backlash to corporate America’s post-George Floyd embrace of Diversity, Equity, and Inclusion (DEI) practices. It is just one area in which companies are finding it hard to avoid political pressures in today’s stakeholder economy. Here’s what public affairs professionals need to know to help their companies navigate the increasingly heated culture wars of our tribal era.
The Summer DEI Turned Ugly
Leading this charge is conservative activist Robby Starbuck, whose campaigns against corporate DEI efforts have forced several major companies to quietly retreat. He led a full-blown digital assault against Harley-Davidson, leveraging his social media reach to accuse the company of straying from its core, blue-collar values. Harley-Davidson caved, dialing back its diversity programs. Next in line was John Deere, the agricultural giant known for embodying rural America. Starbuck’s campaign amassed millions of views, and the company retreated on its DEI initiatives. Seeing the wreckage, Molson Coors, Ford, and Lowe’s preemptively reduced their diversity efforts to avoid Starbuck’s crosshairs.
These aren’t isolated incidents. What started as a weak signal—the occasional conservative critique—has now turned into a full-fledged backlash. Tractor Supply, for instance, initially embraced DEI as part of a broader modernization strategy, but scaled back its efforts after being targeted by one of Starbuck’s campaigns. The retreat wasn’t driven by internal concerns over DEI’s effectiveness but by external pressures. Starbuck’s use of social media, dripping out just enough content over time to keep the pressure rising, has been a devastatingly effective strategy leaving companies from every sector fearing that staying the DEI course could cost them dearly.
Companies’ Complicated Embrace of DEI
Companies first leaned into DEI as a response to a profound cultural shift. The killing of George Floyd galvanized a movement for racial justice, and businesses, driven by both moral imperatives and strategic necessity, integrated DEI into their operations. Companies like Harley-Davidson, Nike, and John Deere were among the most visible in championing these efforts, aligning their brands with social progress and gaining public praise in the process.
What many of these organizations failed to foresee was the emergence of a powerful counter-narrative. On the surface, DEI seemed apolitical — focused on long-overdue fairness, inclusion, and representation. However, to conservative critics like Robby Starbuck, these initiatives represented a broader ideological shift that encroached on corporate neutrality. Companies that embraced DEI became vulnerable to accusations of wading too far into progressive politics, opening themselves to opposing pressure campaigns that can significantly damage their reputations and business models.
As we’ve pointed out before, DEI efforts are too often shaped and driven by a broader progressive agenda that itself is not always that inclusive. Plus, for many companies, the embrace of DEI has been more rhetoric than results, with little real progress towards stated goals of elevating under-represented populations in company ranks – particularly at higher levels. That’s left companies stuck between unsatisfied progressives and angry conservatives.
In Politics, Every Action Has An Unequal And Opposite Reaction
Starbuck’s playbook reveals a deeper truth about today’s political dynamics. DEI, which quickly became viewed as a corporate best practice, is now seen by many on the right as synonymous with “wokeness” — a label that carries significant risks in today’s polarized environment. What some companies initially saw as distant concerns have turned into high-pressure reputational crises and many prominent libertarian and conservative voices in the business world are now pushing companies to embrace an alternative: Merit, Excellence, and Intelligence (MEI).
This new reality brings significant legal implications, with lawsuits alleging reverse discrimination on the rise and politicians pushing legislative and enforcement actions. Florida Gov. Ron DeSantis spearheaded efforts to dismantle DEI with the “Stop WOKE Act” in 2022, which restricted how race and gender topics are taught in schools and workplaces. In 2023, he expanded these efforts by defunding DEI programs in higher education, labeling them as political indoctrination. His actions set a precedent for other Republican governors, with states like Texas, North Dakota, and North Carolina advancing similar policies.
In many ways, DEI has become a proxy for larger ideological battles, and companies are increasingly caught in the crossfire. As Starbuck’s campaigns continue to gain traction, businesses that once felt pressure to do more on a range of social issues from the left are now feeling the same sort or pressure from the right — and not all of them understand how they got here or what it means as our cultural warfare continues.
Navigating The Tribal Divide
As the stories of Harley-Davidson, John Deere, and Tractor Supply illustrate, the decision to step back from DEI initiatives isn’t always about rejecting diversity itself but about managing the complex realities of political and reputational risk. Even firms like Nike, a well-known and ardent supporter of progressive social causes, has tempered its public messaging in recent months.
The DEI blowback we’re witnessing today is a reflection of deeper societal divisions, ones that are now playing out across corporate America. Public affairs professionals need to understand this battle isn’t just about DEI—it’s about the role activists and politicians on both sides of the divide expect businesses to play in shaping cultural narratives.
In this new era, companies must navigate an ever-shifting landscape where political and cultural allegiances can determine success or failure. For those in government relations and public affairs, staying attuned to these tribal dynamics will be critical in helping organizations anticipate and manage the next wave of blowback—or hopefully avoid it all together.
Jeff Berkowitz is the founder and CEO of Delve, a competitive intelligence and risk advisory firm.
armed forces
Top Brass Is On The Run Ahead Of Trump’s Return
From the Daily Caller News Foundation
By Morgan Murphy
With less than a month to go before President-elect Donald Trump takes office, the top brass are already running for cover. This week the Army’s chief of staff, Gen. Randy George, pledged to cut approximately a dozen general officers from the U.S. Army.
It is a start.
But given the Army is authorized 219 general officers, cutting just 12 is using a scalpel when a machete is in order. At present, the ratio of officers to enlisted personnel stands at an all-time high. During World War II, we had one general for every 6,000 troops. Today, we have one for every 1,600.
Right now, the United States has 1.3 million active-duty service members according to the Defense Manpower Data Center. Of those, 885 are flag officers (fun fact: you get your own flag when you make general or admiral, hence the term “flag officer” and “flagship”). In the reserve world, the ratio is even worse. There are 925 general and flag officers and a total reserve force of just 760,499 personnel. That is a flag for every 674 enlisted troops.
The hallways at the Pentagon are filled with a constellation of stars and the legions of staffers who support them. I’ve worked in both the Office of the Secretary of Defense and the Joint Chiefs of Staff. Starting around 2011, the Joint Staff began to surge in scope and power. Though the chairman of the Joint Chiefs is not in the chain of command and simply serves as an advisor to the president, there are a staggering 4,409 people working for the Joint Staff, including 1,400 civilians with an average salary of $196,800 (yes, you read that correctly). The Joint Staff budget for 2025 is estimated by the Department of Defense’s comptroller to be $1.3 billion.
In contrast, the Secretary of Defense — the civilian in charge of running our nation’s military — has a staff of 2,646 civilians and uniformed personnel. The disparity between the two staffs threatens the longstanding American principle of civilian control of the military.
Just look at what happens when civilians in the White House or the Senate dare question the ranks of America’s general class. “Politicizing the military!” critics cry, as if the Commander-in-Chief has no right to question the judgement of generals who botched the withdrawal from Afghanistan, bought into the woke ideology of diversity, equity and inclusion (DEI) or oversaw over-budget and behind-schedule weapons systems. Introducing accountability to the general class is not politicizing our nation’s military — it is called leadership.
What most Americans don’t understand is that our top brass is already very political. On any given day in our nation’s Capitol, a casual visitor is likely to run into multiple generals and admirals visiting our elected representatives and their staff. Ostensibly, these “briefs” are about various strategic threats and weapons systems — but everyone on the Hill knows our military leaders are also jockeying for their next assignment or promotion. It’s classic politics
The country witnessed this firsthand with now-retired Gen. Mark Milley. Most Americans were put off by what they saw. Milley brazenly played the Washington spin game, bragging in a Senate Armed Services hearing that he had interviewed with Bob Woodward and a host of other Washington, D.C. reporters.
Woodward later admitted in an interview with CNN that he was flabbergasted by Milley, recalling the chairman hadn’t just said “[Trump] is a problem or we can’t trust him,” but took it to the point of saying, “he is a danger to the country. He is the most dangerous person I know.” Woodward said that Milley’s attitude felt like an assignment editor ordering him, “Do something about this.”
Think on that a moment — an active-duty four star general spoke on the record, disparaging the Commander-in-Chief. Not only did it show rank insubordination and a breach of Uniform Code of Military Justice Article 88, but Milley’s actions represented a grave threat against the Constitution and civilian oversight of the military.
How will it play out now that Trump has returned? Old political hands know that what goes around comes around. Milley’s ham-handed political meddling may very well pave the way for a massive reorganization of flag officers similar to Gen. George C. Marshall’s “plucking board” of 1940. Marshall forced 500 colonels into retirement saying, “You give a good leader very little and he will succeed; you give mediocrity a great deal and they will fail.”
Marshall’s efforts to reorient the War Department to a meritocracy proved prescient when the United States entered World War II less than two years later.
Perhaps it’s time for another plucking board to remind the military brass that it is their civilian bosses who sit at the top of the U.S. chain of command.
Morgan Murphy is military thought leader, former press secretary to the Secretary of Defense and national security advisor in the U.S. Senate.
Business
For the record—former finance minister did not keep Canada’s ‘fiscal powder dry’
From the Fraser Institute
By Ben Eisen
In case you haven’t heard, Chrystia Freeland resigned from cabinet on Monday. Reportedly, the straw that broke the camel’s back was Prime Minister Trudeau’s plan to send all Canadians earning up to $150,000 a onetime $250 tax “rebate.” In her resignation letter, Freeland seemingly took aim at this ill-advised waste of money by noting “costly political gimmicks.” She could not have been more right, as my colleagues and I have written here, here and elsewhere.
Indeed, Freeland was right to excoriate the government for a onetime rebate cheque that would do nothing to help Canada’s long-term economic growth prospects, but her reasoning was curious given her record in office. She wrote that such gimmicks were unwise because Canada must keep its “fiscal powder dry” given the possibility of trade disputes with the United States.
Again, to a large extent Freeland’s logic is sound. Emergencies come up from time to time, and governments should be particularly frugal with public dollars during non-emergency periods so money is available when hard times come.
For example, the federal government’s generally restrained approach to spending during the 1990s and 2000s was an important reason Canada went into the pandemic with its books in better shape than most other countries. This is an example of how keeping “fiscal powder dry” can help a government be ready when emergencies strike.
However, much of the sentiment in Freeland’s resignation letter does not match her record as finance minister.
Of course, during the pandemic and its immediate aftermath, it’s understandable that the federal government ran large deficits. However, several years have now past and the Trudeau government has run large continuous deficits. This year, the government forecasts a $48.3 billion deficit, which is larger than the $40 billion target the government had previously set.
A finance minister committed to keeping Canada’s fiscal powder dry would have pushed for balanced budgets so Ottawa could start shrinking the massive debt burden accumulated during COVID. Instead, deficits persisted and debt has continued to climb. As a result, federal debt may spike beyond levels reached during the pandemic if another emergency strikes.
Minister Freeland’s reported decision to oppose the planned $250 onetime tax rebates is commendable. But we should be cautious not to rewrite history. Despite Freeland’s stated desire to keep Canada’s “fiscal powder dry,” this was not the story of her tenure as finance minister. Instead, the story is one of continuous deficits and growing debt, which have hurt Canada’s capacity to withstand the next fiscal emergency whenever it does arrive.
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