Mark Cuban, billionaire entrepreneur and star of the TV show “Shark Tank,” has expressed his belief that embracing “woke” ideology benefits businesses.
In response to the backlash faced by companies such as Anheuser-Busch and the Target Corporation for promoting LGBTQ+ agendas in their brands, Cuban defended their choices and argued that being woke is good for business.
Cuban, the owner of the Dallas Mavericks, spoke to the Pittsburgh Post-Gazette and pointed out that many of the top ten market cap companies in the United States can be considered woke.
He stated, “There is a reason almost all the top ten market cap companies in the U.S. can be considered ‘woke.’ It’s good business.”
Cuban dismisses concerns about incorporating politics in business
While critics argue that incorporating politics into business can have negative consequences, Cuban dismissed these concerns.
He explained that CEOs understand the importance of weathering news cycles and waiting for public sentiment to shift.
In his view, embracing wokeness is a positive characteristic that aligns with customers’ values.
Impact of ‘wokeness’ on Bud Light’s finances
Recent data has shown that companies like Anheuser-Busch and Target have experienced significant financial losses after promoting LGBTQ+ initiatives.
Bud Light, for instance, witnessed a 23.9% decline in sales compared to the previous year following its apparent partnership with transgender influencer Dylan Mulvaney.
The brand’s sales fell by 24.5% within the last four weeks.
Target loses billions to embracing ‘wokeness’
Similarly, the Target Corporation’s market cap has plummeted by billions of dollars since the company started featuring LGBTQ+ and Pride Month advertisements and products like “tuck-friendly” women’s swimsuits.
Target’s stock experienced a 3.1% drop in the past five days and an 18.5% decline in the last month.
Cuban dismisses dip in Target, Bud Light market value as ‘inconsequential’
However, Cuban dismissed the significance of these dips in market value and argued that such fluctuations are inconsequential because most stock ownership is through funds, and trading is mainly quantitative.
Therefore, he maintained that the decline was unlikely to result from individual stockholders reacting to the controversies.
Business owners caution against embracing ‘wokeness’
Cuban suggested that the recent emphasis on woke politics might stem from companies recognizing that customers prefer to do business with organizations that care about their well-being.
He described this quality as an American trait that reflects the country’s values.
Despite Cuban’s support for embracing wokeness in business, other commentators and business owners have cautioned against it.
Demand for Bud Light plummets completely. Tucker points out
Catarina Tucker, the founder of Barnastics, revealed that demand for Bud Light had “plummeted completely” and that clients no longer wanted it at their events.
She attributed this decline to the brand’s association with woke politics, noting that it had become unpopular among consumers.
Mark Cuban maintains that embracing woke ideology benefits businesses.
Cuban’s perspective on ‘woke politics’ in business vs. critics’ concerns
While some companies have faced significant financial losses after incorporating woke politics into their branding, Cuban argues that such dips in market value are inconsequential and that customers prefer to support companies that demonstrate care for their well-being.
However, critics caution that embracing woke politics can harm business success.