Companies that take a stand on social issues almost always face some kind of blowback on their business. CEOs and their boards weigh the risks and the importance of speaking out versus putting a significant revenue stream in jeopardy. Adidas has seen this first-hand since the company raised concerns about forced labor allegations in China’s Xinjiang region. The concern Adidas raised – an issue shared by many companies – prompted a Beijing-led boycott. Since then, Greater China revenues at the German sportswear maker have tumbled. Its OTC shares have held steady during the past year, though, and over five years have more than doubled with China being a major growth area. The long-term vision – and employee support – must be weighed over the depth of the short-term hit.
Crypto and shareholder activism have officially collided. NuOrion Partners, not a brand-name activist investor but one that has agitated across the consumer sector, said this week that Macy’s should partner with crypto platforms and team up with electric vehicle makers. Well-known activist, Jana Partners, is already pushing for changes at Macy’s. ESG is a fairly new arrow in the activists’ quiver. Crypto even more so.
Have a great weekend,
Mike and Chris