week 7-Stategic Management

Chapters 12 and 13: “Critical Diversity Theory” & “Woke Consumerism and the Big Sort” Presented By:

Jenny Hanes, Nolan Bielskis, Amy Thorpe, Luke Darland, and Ruqayah Algburi

Insight (Key Concepts) Chapter 12 - Critical Diversity Theory

The fall of Larry Summers happens as a result of comments made at a diversity conference for science and engineers - Institutions and organizations are adopting implicit and explicit approaches to achieving diversity - “Extol free speech publicly, but keep controversial thoughts to yourself”

Racism was redefined - impossible to be racist against white people “Critical” theories sprouted like weeds Center for the Study of Partisanship and Ideology

- Over a third of conservative academic and PhD students had been threatened with disciplinary action for their view - 70 percent complained of hostile departmental climate due to their beliefs

Three Essential Objectives (to achieving true diversity): 1. They implicitly reinforce incorrect assumptions that genetic characteristics predict something important about the way people think 2. Forces managers to create an appearance of diversity without engaging in real diversity of thought 3. Systems like affirmative action and quota based equired programs promote racism and sexism to the people it excludes or offers no benefits.

Chapter 13 - Woke Consumerism and the Big Short

George Floyd killing sparks companies to align with #BLM, like Popeys and Wendys’ - Wendy’s shifts from the movement due to a killing resulting outside of its drive-thrus to avoid backlash

Elections consistently reflect that voters live in communities where the people they live near are more like them. Looking for factors that simulate to their likes: people outside washing cars - Neighbors who share beliefs and values (red neighborhoods/blue neighborhoods)

Companies supporting agendas cause more division and segregation, they force people to support views and no longer products, or companies, - No longer just buying a burger or a sandwich but the idea or agendas these companies support

Journalist Bill Bishop 2004 book The Big Sort: Why the Clustering of Likeminded America Is Tearing Us Apart and the new informal segregation - People have more economic and financial freedom than before, freedoms to live where they want

Corporations offering official positions limit employees freedoms to speak publicly on issues due to fear of “retribution” - Capitalism = $1/vote = appropriate for goods/services - Democracy = 1 person = 1 vote

Antifederalist said couldn’t have shared nations without shared identity - Black or White, not American

Ramaswamy’s Viewpoint Chapter 12 - Critical Diversity Theory

A call to “critical diversity theory” (CDT): a new system that offers a new vision and way of thinking to achieve true diversity This approach proposes a new way to enforce race and gender based diversity

1. Define what types of diversity of thought are important to an organization 2. Measure diversity in thought in an organization 3. Select for diversity of thought when hiring leader to scale an organization

If we continue to use systems of DEI, we continue to perpetuate racism/sexism. We need to look for alternative ways to approach diversity that does include factors pertaining gender or race. Challenge the way leaders look at and define diversity by creating diverse and measurable metrics that clearly define the purpose. One that does not include factors like gender and racism. But focuses on areas that are important and organization based. Business need to focus on business and profits, separate from corporation and state.

Chapter 13 - Woke Consumerism and the Big Short

- Morally he doesn’t like the influence corporations have on moral matters but “constitutionally” they are within their rights - Woke consumerism goes too far in an attempt to make decisions for the collective - Playing politics through consumer boycotts is a “rich man’s game” - Woke consumerism imposes costs on the people who can least afford to bear it - Diversity isn’t the problem but lack of “shared identity” - What divides us is not diversity but not looking for commonalities - “When we us money to starve barbers we hear are racist, we’re simply using raw power, the closest thing to physical

violence we can legally get away with.”

Central Arguments

The central argument for chapter 12 is the Critical diversity theory. Ramaswamy's critical diversity theory challenges traditional views by emphasizing the intersections of various social categories and power dynamics. This highlights how identities are shaped by multiple factors like race, gender, class, and more. The theory critiques simplistic approaches to diversity, advocating for a deeper analysis of power structures. It encourages institutions to move beyond tokenism and engage in meaningful structural changes that address inequalities. By centering on critical perspectives, it creates inclusive practices promoting justice and equity.

Chapter 13 of "Woke INC." presents a central argument that the commodification of social justice movements by corporations is a form of exploitation and co-optation. It contends that when corporations adopt social justice causes for profit, they often dilute the message, perpetuate inequalities, and prioritize image over genuine change. The chapter illustrates how companies use "wokeness" as a marketing tool, exploiting marginalized communities while failing to address underlying systemic issues. It argues that true progress requires dismantling oppressive structures rather than superficial gestures. The chapter calls for a critical examination of corporate involvement in social justice movements and advocates for more authentic and impactful forms of activism.

Real World Applications from the Text

Key Takeaways-

-the diverse approaches of business, this involves diversity training, holding leaders accountable core company values

-screen employees for diversity, this can be implemented at hiring and also training for current employees

- measuring diversity in the workplace, consistently survey and assess levels in the company and adjust training and mentoring as needed

- value diversity in the different ways that people think, this is being socially accountable,

- continue to work at having diversity in the workplace, working and applying constant transing

This is established according to Vivek by

1, Excellence First

2. Institutional Purpose

3. Institutional Pluralism

4. Separation of Corporation and State

5. Ending discrimination

Broader Implications

Woke INC.'s central diversity theory in chapter 12 challenges traditional views by emphasizing intersectionality and the need for structural change. It promotes awareness of how various social identities intersect and shape experiences, urging organizations to address systemic inequalities. The theory empowers marginalized groups by amplifying their voices and fostering critical consciousness about power dynamics. It advocates for a holistic approach to diversity and inclusion that goes beyond tokenism, emphasizing cultural competence, equitable opportunities, and social justice. Overall, it calls for a shift towards more inclusive, equitable practices that recognize and address intersecting forms of oppression.

Chapter 13 of Woke INC. dives into the implications of woke consumerism and the "Big Sort." It highlights how commodifying social justice can trivialize activism and deepen socioeconomic divides. The chapter raises concerns about consumer activism limitations in effecting systemic change, as it may distract from broader societal transformation. It also examines how corporate involvement shapes social discourse, potentially depoliticizing issues to fit market interests. Ultimately, it challenges readers to critically evaluate the impact of their consumption choices and consider the broader implications of supporting brands that claim to align with social justice values.

Evaluating Ramaswamy’s Arguments WeaknessesStrengths

● Brief Discussion on CDT: While Vivek does a good job at providing many examples leading up to the point he is making when discussing CDT, once he arrives at defining and explaining CDT, it is brief. His push for jumpstarting this movement could be strengthened by spending more time discussing his thoughts on CDT and less time engaging in examples of wokeness gaining popularity. This gives the impression Vivek is not as invested into CDT as he would lead one to believe.

● Distraction from Points Made on CDT by Referencing Bill Gates: Vivek circles back on his time at Harvard, discussing his graduation ceremony and the speaker that day, Bill Gates. This reference distracts from the message on CDT he is sending and provides no value-added perspective. It creates an appearance Vivek is simply name dropping.

● Many Ideas Presented are Theoretical Considerations: During the readings, Vivek draws many conclusions and thoughts to persuade the reader on his viewpoint. Many of these conclusions and thoughts are merely theoretical considerations which Vivek plainly admits in the text.

● Citizens Lack Shared National Identity: Vivek makes this statement from what appears to be a biased opinion. It is not substantiated and can be easily argued against. While there is great divide in the United States, there are instances when those divides come together as one. Albeit typically negative in nature, however, examples include helping each other during natural disasters, terrorist attacks, or mass shootings regardless of opposing viewpoints.

● Firsthand Encounter of when Wokeness Became Dominant: Vivek provides a vivid recollection from 2007 during his time at Harvard when he was selected to be on the advisory committee to appoint a new President. This strengthens his argument on wokeness migrating through academia and eventually into corporations and the government.

● Discussion on the 5 Key Principles of CDT: Elaborating on CDT by providing the 5 key principles offers a starting point for implementation of the movement Ramaswamy wants to begin. Without these principles as a guide, the reader could be lost on how he proposes to create the change he wants to see regarding enforcement of race and gender-based diversity metrics within corporations.

● Accurate Analysis of the Virtual Big Sort: After providing a detailed comparison between fast food establishments supporting BLM and geographic flocking of politically like-minded people, Vivek makes a similar argument between social media platforms. His approach to this comparison is easily understood and brings context to his point.

● Consumers Crossing Moral Lines: Vivek brings to light woke consumerism has gotten so out of control, the consumers are crossing moral lines. Such as woke individuals standing outside a barbershop yelling at customers not to go in because they “heard” the barber is racist. This type of behavior can be witnessed on an almost daily basis and strengthens Ramaswamy’s case for taking a stand against ”trying to starve the barber”.

Facilitating Discussion

1. Has wokeness already won in universities as Vivek states? Discuss current day examples supporting your position.

2. Do you agree with the CDT movement Vivek discusses wanting to start? Why or why not?

3. As a consumer, do you let wokeness dictate where you shop and eat? Please explain.

4. In the modern-day era with social media and instant worldwide connection, do you think the Big Sort has become problematic regarding wokeness or a positive way like-minded people connect?

Concluding Thoughts

According to Ramaswamy, woke consumerism and the Big Sort are contributing to a deepening of inequality and a loss of shared values that are leading to a decline in society. In his view, consumers should pay more attention to the companies that value social equity and environmental sustainability over companies that prioritize profits, rather than those that put profits first. A further suggestion that he makes is that people should strive to form meaningful relationships with people from different backgrounds, rather than creating exclusive communities that exclude people from different backgrounds. According to him, businesses should put people before profits, and should create products and services that will benefit society as a whole, and will also be beneficial to the environment. The author also argues that businesses need to seek to create more inclusive work environments, and they need to prioritize hiring people from all backgrounds and of all ethnic backgrounds.

Expand Your Understanding In order to better understand consumer experiences and how products and services are marketed, Critical Diversity Theory looks at how race, gender, and class shape consumer experiences. According to Woke Consumerism, woke consumers use social media to pressure companies into making ethical and sustainable decisions as a means of pressure. In the Big Sort, the author examines how people are segregated into like-minded groups based on their consumption patterns and lifestyle choices and how these choices are reflected in their consumption patterns. There is a growing field of eco-labeling that examines how companies can utilize the environment as a way to differentiate their products and appeal to consumers who are woke. The concept of Consumer Activism is a way for consumers to use their power in order to bring attention to social issues, and to make companies change their practices in order to address those issues.

Ramaswamy, Vivek. How Woke Makes Us Broke. YouTube