Walt Disney Co. (NYSE:DIS) is facing a growing backlash over the refusal of CEO Bob Chapek to openly criticize the proposed “Don’t Say Gay” legislation in Florida, with a growing number of Disney employees openly criticizing their employer while calls for a boycott of the company grow louder in volume.
What Happened: The controversial legislation bans the discussion of sexuality and gender identity in the state’s schools until after the third grade. Chapek’s predecessor Bob Iger came out against the bill on Feb. 25 when it passed in the Florida House of Representatives, but Chapek avoided Iger’s example and made no comment on the matter. The Hollywood Reporter, citing an unnamed “knowledgeable source,” stated Chapek didn't want to involve the company in “issues he deems irrelevant to the company and its businesses.”
But complicating matters were reports that Disney offered campaign contributions to Florida legislators who both supported and opposed the “Don’t Say Gay” legislation. As the issue continued to metastasize, Chapek issued an internal memo to the Disney workforce on Monday that claimed corporate support for the LGBTQ community.
“In terms of our communities, we are and will continue to be a leader in supporting organizations that champion diversity,” he wrote. “In 2021, we provided nearly $3 million to support the work of LGBTQ+ organizations. And, we have a long history of supporting important events like Pride parades.”
Chapek confided in his memo that he held a meeting on Friday with “a small group of Disney LGBTQ+ leaders” who expressed “disappointment” over his approach to “Don’t Say Gay.” Although he defined the meeting as “meaningful, illuminating, and at times deeply moving,” he insisted corporate statements rarely encourage a significant shift in public opinion and can further the divide between the opposing sides of a contentious issue.
“Simply put, they can be counterproductive and undermine more effective ways to achieve change,” Chapek wrote, referring to Disney’s movies and shows and its philanthropic support of LGBTQ+ organizations.
Chapek added that his decision not to speak out publicly against “Don’t Say Gay” is not evidence he either agreed with the legislation or was indifferent to the ill-will that it was creating.
“I do not want anyone to mistake a lack of statement for a lack of support,” he stated. “We all share the same goal of a more tolerant, respectful world. Where we may differ is in the tactics to get there.”
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What Happened Next: At the moment, it appears Chapek’s attempts to calm the situation aren't working. A number of Disney employees have taken to social media calling out the company for its silence on the Florida legislation.
“I am a LGBT animation writer at Disney and this is why I want the company I love to take a stand against the ‘Don't Say Gay’ bill. #DisneySayGay #DisneyDoBetter,” tweeted Benjamin Siemon, adding, “I encourage everyone who feels the same way I do to make their voice heard. Now is the time to step up.”
Sam King, a director on the Disney Channel series “The Ghost and Molly McGee,” shared Siemon’s concern by tweeting, “It is so frustrating that us LGBT Disney employees have to speak up about existing and wanting other people in our community to be safe, in fear for our livelihoods. If the company is so dedicated to inclusion, why is standing up for the safety of LGBT youth, at odds with it.”
Breanna Williams, a production coordinator on the Disney Channel series “The Proud Family,” also expressed concern, tweeting, “I like working at Disney. I really do, but to see the company give such a non committal stance on something that is extremely dangerous and hurtful says a lot.”
Williams, who is African American, added, “I'm happy to be part of a show that very much and GENUINELY is putting representation of black queerness out there. And that IS IMPORTANT. Content is important, but it feels like ...we're being used as a prop or an excuse to keep funding folks who want a harmful bill to pass.”
And Abigail Disney, the filmmaker and granddaughter of Roy Disney, the company’s co-founder, chimed in by tweeting, “The times for neutrality are long since over. That train has left the goddam station. What is Disney for? Is it for pretending what America is about, or it is for defining a vision for a world in which fantasy, love, kindness, decency and loyalty are bedrock values.”
Abigail Disney also took aim at Chapek, complaining, “This is the wrong leadership for the wrong time. There are no sidelines anymore. When one side is asking to wipe the other from the face of the earth, whether for reasons of sexuality, race or for any other reason, looking for the sidelines is craven and morally bankrupt.”
Also Happening: The controversy has generated the rise of the #BoycottDisney hashtag across social media, with actor/model Daniel Newman reflecting the attitude of the boycott advocates in tweeting, “#BoycottDisney trending. @Disney Literally all U had to do is say "Disney is AGAINST ALL forms of prejudice & inequality, including the #DontSayGayBill” & stop$. Heads of Disney (that I know Very well) need to correct this long floundering tone-deaf reply and negative coverage of the company in LGBTQ-focused media.”
However, some social media denizens noted that boycotting Disney might be easier said than done, as Twitter user JDN observed, “#BoycottDisney Y’all know Disney owns over 200 companies right? It’s literally impossible to boycott Disney.”
What Happens Next: Of course, there is no such thing as a permanent crisis and eventually the issue will dissipate. What happens next depends on whether Chapek shifts gears and makes a public statement against “Don’t Say Gay” or if he rides out the storm without changing strategies. "Don't Say Gay" was passed this afternoon by Florida's Republican-controlled State Senate and Gov. Ron DeSantis is expected to sign it into law, so the controversy has yet to run out of gas.
And speaking of gas, Disney is also dealing with a variety of challenges including rising fuel prices, the impact of inflation on bringing visitors its attractions, the competition from rival film and streaming companies and the ability to adapt to changing trends and opportunities, particularly the metaverse.
From an investor’s viewpoint, the company’s stock performance could use some immediate reanimation. As of 12 p.m. ET, Disney shares were trading at $133, resting near its 52-week low of $129.26 and far from its 52-week high of $201.70.
Photo: Momental / Pixabay
