The parent company that owns the Oreo empire, Mondelez, is being warned by the National Legal and Policy Center that its involvement with partisan political groups, specifically the LGBTQ pressure group PFLAG, is putting shareholder value at significant risk.
The cookie company’s Chicago-headquartered parent organization, Mondelēz International, will be confronted at its annual shareholder meeting on Wednesday over how its LGBTQ marketing could tank business and irreparably tarnish the brand.
As a shareholder in Mondelēz, formerly Kraft Foods, the National Legal and Policy Center (NLPC), a non-profit corporate watchdog, is warning the owner of Oreo (and other American household favorites): “Don’t make yourself the next Bud Light.”
According to a two-page proposal, which NLPC will present to shareholders this week, Mondelēz “irresponsibly” involves itself in politically divisive issues and is deeply embroiled in left-wing activism, consequently creating “reputational and financial risk.”
In the proposal they note that, “Potentially controversial relationships, especially tethered to social and cultural issues, can damage brands with customers, employees, suppliers, and investors, and present material risks to companies’ reputation and sustainability.” It includes a handful of examples, including Bud Light, Target, and Walt Disney. The proposal goes on to point out that,
Boycotts, silent or boisterous, can arise without warning. Once they gain momentum, the damage can be difficult to contain. InBev, Target and Disney are learning the hard way. Thus, it is critical the Board of Mondelez International (“Company”) focus on its own vulnerabilities before they become a liability.
The proposal suggests “Shareholders request the Audit Committee of the Board of Directors create a study subcommittee to examine the risks and consequences of the Company’s associations with external organizations.” It is a fair and equitable resolution. Conservatives are not the most proficient of boycotters, but the Bud Light thing created a new baseline for their ability to punish a brand.
Neutrality, it seems, is what these shareholders are after. Stay out of politics, make a decent cookie, and we’ll all share in the ongoing success of a well-established brand.
I don’t think the people running Oreo are going to listen, so feel free to start your boycott now. Or don’t.
