A fundamental shift in capitalism?

QUICK READ: The social issues facing our country are pouring over into capitalism. Employees are demanding changes to the way their companies conduct business and employers had better listen.

Microsoft employees are demanding that their company stop doing business with police departments. Facebook faced a revolt from its employees after Zuckerberg dodged the responsibility of false information by the current administration. Welcome to the new order of capitalism.

For too long too many American businesses have been focused on one thing: money. Now consumers ad employees are saying “enough is enough”. They want their companies to be part of the solution and they are not afraid to risk their jobs by speaking out.

In addition to corporate social responsibility, people are finally becoming outraged at the salaries of CEOs who take in millions of dollars in compensation while talking about the pain of layoffs. Those CEOs who have cut their salaries because of the economic downturn are often being rewarded through the backdoor known as stock options and the Internet is exposing them.

Of the 554 companies that had announced cuts to executives’ salaries according to the pay consultancy Equilar, the FT found 51 which had both the same CEOs and awards program as last year. Those CEOs had been awarded on average 52 percent more options or shares than in 2019.

Some brands do understand the changes but too many others are playing the “tell them what they want to hear game” and people are tired of that shit. A lot of corporations feel that, once the pandemic has subsided, things will go back to normal. That’s a huge mistake.

People drive the economy and right now the savings rate has climbed substantially meaning that they are not planning to spend the same way as before the pandemic. They have learned that with the dysfunction in Washington they need to count more on themselves and less on the government.

The changes we are seeing are not going to be temporary. Brands that don’t see the changes that are coming or play the game are going to pay a huge price that even great marketing can’t overcome.

When this is all over 2020 will be seen as a beginning in the way brands market and do business. Social responsibility IS paramount to doing business. Giving to charities and speaking up at wrongs is now the norm. You can’t afford to stay neutral anymore.

Employees are more important than your customers and if they feel you’re making mistakes they are going to ket you, and the media, know it. People are also finally getting real proof that Wall Street has nothing to do with what happens on Main Street.

You had better listen.

About richmeyer

Rich is a passionate marketer who is able to quickly understand what turns a prospect into a customer. He challenges the status quo and always asks "what can we do better"? He knows how to take analytics and turn them into opportunities and he is a great communicator.

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