January 26 marks colonization in Australia. This brought violence, theft, and oppression against the First Nations Peoples, who had been living on the land for over 50,000 years. Also known as Invasion Day.
Many workplaces, including ANZ Telstra and Woodside, have offered employees an alternative day of leave to celebrate Australia Day.
Read more: Why we should celebrate Australia Day on March 3 – the day we became a fully independent country
Woolworths is not the only retailer to distance itself from the date this year, with Aldi announcing it will not stock Australia-themed products under its Special Buys promotion. Kmart has not sold items specific to January 26 since last year.
The message that retailers want to send out to the community
When corporations engage in sociopolitical activism they often overstate the social motivations, and underestimate expected benefits to their bottom line. Woolworths has taken a unique position in that it is primarily a business decision.
It raises the question of whether big retailers are avoiding Australia Day merchandise out of business reasons rather than for social reasons.
Why do you pursue a strategy of business first, activism second? Does this appease shareholders? What does “activism without activist” mean to the public, and is it real? Is it a way to divert attention from the exorbitant price?
The business case for activism
Peter Dutton, the leader of the opposition party, quickly called this ” peddling radical agendas.” Woolworths Group spokesperson, however, cited a ” gradual decrease ” in the demand for Australia Day products. The Woolworths Group also acknowledged that January 26 is important to many different communities.
In a survey conducted in 2021, 55% of Australians favored changing the date. Shutterstock/Dave Hewison Photograph
investors are a key group to consider when presenting a case for corporate activism. They are usually against companies taking a stance on social justice issues, believing that businesses should “stay within their lane.”
Woolworths’ support for the Indigenous Voice in Parliament referendum resulted in a reaction.
According to academic research, an activist brand can negatively impact shareholder returns. Investors see this as an inappropriate allocation of resources that threatens to maximize profits. The perceived risk associated with corporate activism increases for companies that have a large market share. There are more customers they could lose and fewer that they could gain.
Woolworths chose to put business first and activism second in this case. Woolworths is a retailer and therefore has the right to make merchandising choices. This will likely satisfy shareholders. Shareholders are also less likely to worry if the retailer disguises its activism under profit maximization.
Customers are increasingly aware of the duality of a brand’s motivations. Self-serving motives can be acceptable if there is a perception of a sufficient social impact. Woolworths exposed the profit motive while also highlighting the problematic history behind Australia Day.
What is activism without activism?
Woolworths’ decision to support First Nations was not based on business considerations but rather was seen by the public as a political action that sparked debate and prompted grandstanding.
A company with this level of marketing intelligence would have been able to accurately predict this reaction and make a calculated decision on how to respond. This looks like activism, but it is not. Woolworths raised a social issue but worked behind the scenes of dollars and cents.
Read more: ‘Change the date’ debates about January 26 distract from the truth-telling Australia needs to do
Consumers are discerning about corporate activism, requiring companies to move beyond marketing rhetoric and demonstrate meaningful actions. Usually, activism attracts criticism when brands are perceived to be wokewashing – that is, misleading consumers about prosocial corporate practices. Brand activism is, therefore sometimes viewed as a “ fake marketing trick ” because brands are not backing up their stance on social justice issues.
