OPINION: This article may contain commentary which reflects the author's opinion.
The GOP-controlled state of Florida’s recent legislative actions to strip Disney World of its special tax and governing status has apparently caught the attention of the CEOs of other ‘woke’ corporations, according to a new report.
Earlier this spring, Disney’s CEO, Bob Chapek, angered Gov. Ron DeSantis and the GOP-led legislature when he publicly voiced opposition to a parental rights bill and vowed to see it overturned. That led DeSantis to declare that “Disney is a guest in Florida” and new legislation that stripped the entertainment behemoth of its special status under the Reedy Creek Improvement District, a 39-square mile special governing and taxing district that allowed Disney to avoid paying certain taxes or adhering to some regulations.
But, according to The Wall Street Journal, some CEOs are now asking the question of how they can avoid the same outcome for their corporations.
“The No. 1 concern CEOs have is, ‘When should I speak out on public issues?’” former Medtronic CEO and current Harvard Business School senior fellow Bill George told the paper. “As one CEO said to me, ‘I want to speak out on social issues, but I don’t want to get involved in politics.’ Which I said under my breath, ‘That’s not possible.’”
The WSJ went on to note that some executives may now feel some sense of relief — that they can now go back to ensuring maximum returns for shareholders while having a reason to avoid wading into political debates. And according to corporate lawyer David Berger, lawmakers appear to be more willing now to take on big business when it is politically advantageous to do so.
“It used to be that Republicans especially — but both parties — liked big business,” he explained. “And now what you’re seeing is both parties like to use big business as political footballs one way or the other.”
The WSJ adds:
Certainly the consequences of weighing in appear to be changing. Lawmakers for years have expressed displeasure when companies take public stands on issues such as voting access, through critical tweets, public remarks and, in some cases, calls for public boycotts. Disney’s experience shows a willingness to go further, corporate advisers say, by challenging arrangements that have helped a company to operate. …
Some executives say they have learned to monitor issues that could consume public attention and increase pressure for some response. Some use employee affinity groups to help flag potentially troublesome issues.
Julie Schertell, CEO of the Georgia-based manufacturing company Neenah, added that “probably anybody sitting in a leadership role” is keeping track of the situation with Disney in Florida “to some degree.”
“Because I want folks to assume positive intent, like ‘Here’s what we’re trying to do, and if it feels like a misstep, let’s talk about that. And of course, correct on it,’” she noted with respect to taking employees’ concerns into consideration.
Ron Williams, the onetime chairman of Aetna who is now on the boards of Boeing, Johnson & Johnson, and American Express, noted as well that it is a “challenging job” for corporate executives to navigate politics today.
“Companies often deal in substance, and politicians often deal with foils,” he said. “And so, you know, companies can inadvertently become a foil for different political issues. It’s not enough to know what you want to do. You have to be artful in how you do it.”
As for Florida and Disney, DeSantis indicated last week that more actions were forthcoming.
The GOP leader vowed to pursue “additional legislative action” aimed at preventing the Sunshine State from suffering any tax income fallout or legalities following recent efforts to dismantle a status first established for the entertainment giant in 1967 when construction of the current theme park was in the planning stages.
DeSantis made his remarks during a town hall-style event hosted by Fox News’ Laura Ingraham in Orlando.
“There’s going to be additional legislative action,” said the governor. “We’ve contemplated that. We know what we’re going to do, so stay tuned. That’ll all be apparent.”
