Good morning,
The data is in: companies have cut back their public comments on social issues. The Wall Street Journal reported earlier this month that mentions of social impact initiatives on earnings calls dropped almost 40% in the second quarter of this year from their peak in the first quarter of 2021, although such mentions remain well above pre-pandemic levels. (Phrases tracked in the study were “ESG,” “DEI,” “environmental, social and governance,” “diversity, equity and inclusion” and “sustainability.”) And some smart data-sleuthing by Bloomberg found that references to LGBTQ “pride” month in corporate public filings in the second quarter were down 39% from last year’s second quarter, although also still above pre-pandemic levels.
This should be no surprise. Well-publicized controversies involving AB InBev, Target, and Starbucks—as well as broader political attacks on ‘woke’ CEOs—have led companies to become more cautious about commenting on controversial issues.
