The article in the url below profiles Black Rifle Coffee – a roasting company in Salt Lake City that, I would argue, is just as good an example of strategic CSR in action as Patagonia:
"Black Rifle Coffee Co. says its AK-47 Espresso Blend 'is here to conquer your taste buds.' Its extra-dark Murdered Out roast 'will fuel your midnight ops or your morning commute.' Another of the six-year-old company's blends promises to 'keep your freedom engine running.'"
While enacting a very different set of values to Patagonia and, as a result, appealing to a completely different part of the population, the point is that Black Rifle stands for something and that thing is highly valued by a specific market segment:
"With firearms-themed branding, unabashed support for police and the military and an irreverent founder who hasn't shied away from political debate, Black Rifle is a prime example of the way some businesses are capitalizing on politically engaged consumers' hyperpartisan shopping habits."
While we get the politicians we deserve, we also get the companies we deserve. As a result, the mix of businesses across the economy will reflect the values of the broader population. And, clearly, there is a market for some firearms with your coffee:
"Salt Lake City-based Black Rifle said its revenue nearly doubled in 2020 to $163 million, 70% of it from e-commerce. In 2015, its revenue was $1 million. The company said it is profitable but didn't provide further details. Of its 450 current employees, 55% are military veterans."
The point is value creation – meeting the needs and demands of your key stakeholders, rather than striving to implement a particular set of objectively-defined values:
"Justin Cheung buys Black Rifle's Silencer Smooth blend because he prefers a light roast—and because the company's message resonates with him, including its promise a few years ago to hire a huge number of veterans. 'I do feel better about my purchase knowing that they stand for things I believe in,' said Mr. Cheung, a Southern California-based wine buyer who describes himself as a constitutional conservative."
I can imagine an environmental activist saying exactly the same thing about shopping at Patagonia – while the values are different, the fact that stakeholders are loyal to a company that meets those values is what is important:
"Big American firms historically sought to stay above the partisan fray, an approach summarized by basketball legend Michael Jordan, who famously proclaimed: 'Republicans buy sneakers too.' Now more consumers want CEOs to take a stand. In 2019, 60% of American consumers would make a decision about whether to buy or boycott a company's product based on its stand on societal issues, according to a survey by public-relations firm Edelman—up from 47% in 2017."
As any effective strategist understands, the key to differentiation is market segmentation:
"Tom Davin, the former CEO of Panda Restaurant Group Inc. who was brought on as Black Rifle's co-CEO in 2019, said the company is targeting a specific segment of the population: military members and their families, first responders, sportsmen and gun enthusiasts. 'We're not going for the entire coffee market,' he said."
Rather than something to shy away from, I would like to see more companies adopt a defined set of values and work to enact them, genuinely. Then, the marketplace will decide which companies succeed and which fail. A company can only be socially responsible if it is meeting the needs of that society – what the people who live there actually want. The flipside of that is those companies that judge the societal mood incorrectly, or embrace values that go out of fashion, will quickly find themselves on the wrong side of history, and out of business. Whether we agree with the outcome is different from being able to understand the process by which value is created.
Take care
David
David Chandler
© Sage Publications, 2020
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Coffee with a Shot of Politics
By Zusha Elinson
March 13-14, 2021
The Wall Street Journal
Late Edition – Final
B1
