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Features Australia

Model business

Forget diversity and inclusion if you want to succeed

3 February 2024

9:00 AM

3 February 2024

9:00 AM

The furore over certain organisations trying to ignore Australia Day is just part of a major trend in developed countries where time and again very smart, driven executives of major companies have fallen for the trap of thinking that the vast bulk of consumers of their company’s products share the concerns of tiny but extremely noisy groups with woke agendas.

Perhaps the least costly of these many errors is that of senior executives at bodies as diverse as Woolworths, Cricket Australia and the Australian Open trying to avoid mentioning Australia Day or acknowledge the national holiday celebrations, only to be forcefully reminded that the vast bulk of consumers and sports-watchers are quite happy with the day as it is. They do not want it ignored or re-labelled ‘invasion day’ or ‘oppression day’ as activists have demanded.

After receiving three thousand emails and having opposition leader Peter Dutton call for a boycott against his supermarket chain, Woolworths chief executive Brad Banducci admitted he had misread the political climate over his decision to drop Australia Day merchandise. He also insisted that his decision was due only to last year’s poor sales of such merchandise and that he would celebrate the day himself.

The Australia Day furore, however, is just a bad day at the barbecue compared to the errors costing billions committed by executives of major companies overseas, including those in charge of the iconic US magazine Sports Illustrated. Like all magazines, Sports Illustrated has been struggling to find its place in the digital age, with online sites eating into its core readership, but attempts to reverse this by applying woke obsessions made things far worse.

Sports Illustrated featured articles on subjects such as the lack of ethnic diversity in major sports – an issue in which the vast bulk of its readers had no interest – and even attempted to block advertisers who did not demonstrate a commitment to female equality. But most ludicrous of all was a woke revamp of the magazine’s annual swimsuit issue, a major seller with the publication’s overwhelmingly hetero, male readership.


Instead of using the mainstays of previous years such as a busty Kate Upton, svelte Canadian model Kate Bock or the full-figured girl-next-door-type Myla Dalbesio with a strategically cut t-shirt, the magazine featured transgender men in bikinis and fat women. To the surprise of no one but hard core activists this did not work and the company producing the magazine has all but closed the title, laying off the bulk of the staff. As the magazine rights are owned by another company, Sport Illustrated may yet reappear in another form but at the time of writing nothing has been announced.

The layoffs at Sports Illustrated are, in turn, part of a string of mass sackings at other iconic publications. In January the Los Angeles Times newsrooms announced that it would layoff at least 115 people or about one-quarter of its journalist staff less than a year after a round of major redundancies. Billionaire owner Dr Patrick Soon-Shiong declared that the paper could not continue to lose $US30-40 million ($A46-61 million) a year without increasing revenue and readership. The New York Times and the Washington Post have also announced major lay-offs.

All sorts of reasons can be found for the shake-out at these major newspapers, with the Covid pandemic and the long-running actors strike undoubtedly affecting the LA Times. But online media commentators, openly gloating over the problems of their print competitors, also pointed to the apparent obsession the traditional media has with subjects such as gender and identity politics and climate, as well as its marked cheer-leading for the left. The journalists on those publications, commentators say, have completely lost touch with the concerns of the bulk of their readers.

Even the Disney Corporation usually closely attuned to what its consumers want has been fooled by woke concerns into making what can only be described as strange decisions, notably over the Star Wars franchise which the corporation acquired along with Lucas Films more than a decade ago. Films in this franchise regularly earn more than $US1 billion in ticket sales. But after producing a series of other films that flopped at the box office, Disney decided to revamp the corny space opera and adventure brand by introducing woke themes such as female empowerment.

However, the corporation’s decision to hire a Canadian-Pakistani director Sharmeen Obaid-Chinoy to direct the next Star Wars film, a political activist known for her work in films that highlight gender inequality, resulted in an enormous backlash from fans.

The fans were, in part, reacting to a comment made by Obaid-Chinoy many years ago that she ‘liked to make men feel uncomfortable’ that resurfaced around the beginning of the year. However, online comments indicate those fans see Obaid-Chinoy’s appointment as further evidence of the general decline in the brand since Disney took it over, and that they anticipate that the new film scheduled for release in 2025 will be a ‘woke disaster’. They also point out that Princess Leia was taking on bad guys and fending off Hans Solo back in the 1970s, so why does the brand have to be made more female now?

Another woke disaster was an attempt by fashion brand Victoria’s Secret to atone for past sins, including an unfortunate connection with serial abuser Geoffrey Epstein, by dumping its usual catwalk show of supermodels parading in the brand’s signature Angel’s Wings, including South African Candice Swanepoel and Australia’s own Miranda Kerr, for models who were plus- sized, transgender and disabled.

The result was a £1.1 billion (A$2.13 billion) fall in sales between 2020 and 2023, with the fashion brand announcing at the end of 2023 that it would, as various commentators noted, ‘bring sexy back’.

Fashion is, well, subject to changing fashions, but even hard-headed car industry executives have swallowed woke/climate nonsense, including activist assurances that electric cars will dominate the car market. As noted in this publication (‘EV Speed Bump’, 2 December) car makers such as General Motors and Ford are discovering for themselves after spending billions what non-activist commentators have been telling them all along, that the broad middle class of consumers owning just one cheap car that they need to get to work or take the kids to school have little interest in expensive electric vehicles.

Every week there’s a fresh disaster. This week, Aussie surf brand Rip Curl was forced into damage control after using a transgender surfer to replace a woman. But the real question is why smart, experienced executives let themselves be fooled into spending billions to please perhaps one per cent of the public, who might not even buy their company’s products, while ignoring or alienating almost all their customer base.

Got something to add? Join the discussion and comment below.

Mark Lawson has written ‘Dark Ages – the looming destruction of the Australian power grid’ (Connor Court)

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