How social media is giving consumers a seat at the table
Tuesday 30th June 2020
The advent of the social media age has given consumers unprecedented access to brands and businesses. Where previously brands were simply suppliers of certain goods, they have developed to encompass a unique and highly specific culture. Social media usage is both the cause and consequence of the movement towards more animated brands with defined images. It provides a platform through which brands can portray their values and ethos, whilst simultaneously acting as the arena through which individuals can hold such businesses to account for their relative shortcomings. The annual reports provided by Sprout Social Inc., a management solutions software company which aims to provide information for businesses to help them manage their social media presence, offers useful round-ups of the interactions between brands and consumers. ‘The Sprout Social Index, Edition XII: Call-out Culture’ documented the unprecedented acceleration of social media usage as a means of calling out businesses and holding them to account for their actions. The report revealed that of the 1000 consumers surveyed, 46% use social platforms to “call out” brands, with 55% thinking this is the most effective means of achieving a resolution or response. 4 in 5 individuals also praised social media for providing increased accountability for businesses.
Such trends have continued to develop, signalling a change in the way we perceive brands. In today’s day and age, brands and businesses are judged not only on their own image and ethos, but also on their response to topical issues and their social presence. We needn’t look further than the explosion of the Black Lives Matter (BLM) movement over the past few months to see this phenomenon in action. The revelation of the extent of institutionalised racism in America has brought the question of diversity to the forefront of society. Movements such as Pull Up for Change use public pressure to increase brand transparency as the corporate world moves to align itself with the topical movements against racial divides. A series of allegations of racism and high level resignations within major brands in the wake of the BLM movement reveals the influence that consumers have over the governance of firms. In instances where brand response to the issues of racism have been deemed unsatisfactory, consumers have exercised their power, and through public criticism have been able to advance the trend of accountability to the very top of the internal governance structures.
The most significant reckoning came against former CEO and founder of CrossFit Greg Glassman. Glassman refused to publicly condemn the murder of George Floyd, and on a private Zoom call with affiliate gym owners he questioned the legitimacy of the social pressure to do so, asking “Can you tell me why I should mourn for him? Other than that it's the white thing to do”. The tone-deaf commentary continued with Glassman tweeting that it was “FLOYD-19”, leading to backlash both on social media and in the business world. CrossFit athletes and affiliate gym groups, the main basis of CrossFit’s revenue, dropped their branding, whilst Reebok ended its 10-year partnership with the business. Glassman was forced to step down as CEO, and two weeks later made the decision to sell the brand to Eric Roza, who acknowledged that he was inheriting a ‘community [which is] global, diverse and tough’ albeit one which has been ‘hurt’ by the outgoing CEO’s actions. The unprecedented reaction to Glassman’s comments demonstrated that the moral pressure of social media extended right the way to the boardroom, affecting the governance of the brand as well as its business actions and decision making.
It is not simply about the external image of these brands; the nature of scrutiny and the demand for greater transparency has led to backlash against firms who may outwardly seem to speak out and act against social injustice, whilst themselves perpetuating injustice internally. The recent trend to #boycottReformation was born from the hypocrisy of the clothing brand, once a trailblazer for sustainable clothing in the face of the fast-fashion ascendancy. Along with thousands of businesses from every major industry, Reformation took to social media to condemn racism and police brutality, however it was met with criticism for its lack of diversity within the brand and was met with a series of allegations from former BIPOC employees. Former CEO and founder Yael Aflalo, who has since stepped away from the company, was criticised for her conscious racial bias which took the form of overlooking BIPOC within the management structure of the firm and advancing white employees further. In one case, perpetually ignoring the voice of the only BIPOC in management, Elle Santiago, former assistant manager of the Los Angeles flagship store.
Refinery29 suffered a similar fate; whilst the brand was similarly outspoken on social media, it was quickly condemned for its internal culture, which was described as toxic by black employees. Co-founder and Global Editor in Chief Christine Barberich resigned as a result of numerous claims that the website harboured a racist internal structure in which black writers were consistently overlooked, black colleagues were perpetually confused within the R29 headquarters, and there was a distinct racial pay gap between BIPOC and white employees. It is clear that social media gives consumers unprecedented access to brands, and forces transparency and accountability. This isn’t simply through external actions; the nature of social media forces brands and businesses to create an ethos which is born from the inside out. Their actions cannot simply be a façade, there are too many voices who could reveal this.
The recent string of resignations and allegations demonstrates the extent to which consumers have agency over the actions and governance of brands and businesses. Social media has flung open the doors of the boardroom. Where once the decisions made regarding the culture and image of brands and businesses were far removed from the consumer, social media has created a platform in which individuals can engage with brands, holding them to account in both their external and internal actions. One of the chairs in the boardroom is now effectively filled by the millions of social media users who commit to shop ethically, who are conscious of the brands they are buying from and who use platforms to demand transparency and pursue accountability. The lesson that can be learnt from this is that consumers have a seat at the table.
