In his thought-provoking book "Woke, Inc.," Vivek Ramaswamy takes a critical look at how corporations are exploiting social justice causes for their own gain. He argues that companies are using progressive values as a smokescreen to distract from their pursuit of profit and power. This summary explores the key ideas presented in the book, offering insights into how corporations manipulate public opinion and the potential consequences for American democracy.
Introduction: The Corporate Magic Trick
Just as stage magicians use distractions to hide their true actions, corporations are employing a similar tactic. Their distraction of choice? Wokeness. By publicly supporting progressive social values like gender diversity, racial justice, and climate change, companies win consumer trust and increase revenue while continuing to pursue their own interests behind the scenes.
Ramaswamy's book aims to pull back the curtain on this corporate sleight of hand, revealing how companies are using social justice causes to their advantage. He explores the origins of wokeness, its adoption by corporations, and the potential consequences for American society.
The Rise of Woke Capitalism
From Activism to Corporate Strategy
The term "woke" originated in Black activist circles, encouraging people to stay alert to the realities of racism. Over time, its usage expanded to encompass awareness of various injustices related to race, sex, and gender. As woke ideology gained traction, particularly among white, coastal suburbanites, corporations took notice.
Companies realized they could capitalize on this growing trend by aligning themselves with progressive causes. This led to the emergence of what Ramaswamy calls "woke capitalism," where businesses profit from social values while distracting from their less savory dealings.
The Goldman Sachs Example
A prime example of woke capitalism in action is the case of Goldman Sachs. In January 2020, the company's CEO announced that Goldman would only take a company public if its board included at least one "diverse" member. This proclamation appeared progressive and forward-thinking on the surface.
However, Ramaswamy points out that by July 2019, every company in the S&P 500 already had at least one woman on their boards. Goldman was taking no real risk with this announcement; they were simply attaching their brand to an already popular cause.
Meanwhile, this public display of progressiveness conveniently diverted attention from a major scandal. Goldman had recently agreed to pay $5 billion in fines for its role in a corruption scheme involving the 1Malaysia Development Berhad Fund. The woke proclamation served as a smokescreen for the company's less ethical actions.
The Problem with Stakeholder Capitalism
A Shift in Corporate Responsibility
Ramaswamy identifies the rise of stakeholder capitalism as a key factor in the spread of woke capitalism. This doctrine, which gained prominence in 2018, states that companies are responsible not just to their shareholders but also to various stakeholders impacted by their business, including customers, suppliers, employees, and communities.
While this might sound positive on the surface, Ramaswamy argues that it creates significant problems. Stakeholder capitalism requires companies to take active roles in political and social matters, forcing them to choose which causes to prioritize and what positions to take.
The Blurring of Business and Morality
The author contends that asking companies to make these choices is fundamentally flawed. These are moral judgments, not business decisions. It's as nonsensical to ask a hedge fund manager about climate change as it would be to ask a politician to join a pharmaceutical company's research and development team.
Moreover, Ramaswamy argues that American citizens shouldn't be learning about values and causes from corporations. These discussions should take place in the civic sphere and at the voting booth. When companies use their corporate might to push their views, they're effectively dictating values to the public.
The Delta Airlines Example
To illustrate this point, Ramaswamy cites the case of Delta Airlines commenting on Georgia's new voting rules in 2021. The CEO declared that the voting bill was "unacceptable and does not match Delta's values." This statement raises the question: why should anyone care whether a voting law aligns with an airline company's values?
The Consequences of Corporate Conflicts of Interest
The Pharmaceutical Industry's Price Hike Strategy
Ramaswamy explores how companies exploit their newfound role as social arbiters to their advantage. He cites the example of pharmaceutical companies' response to political pressure on drug pricing.
When both Hillary Clinton and Donald Trump expressed concerns about drug pricing during the 2015 presidential campaign, pharma companies saw the writing on the wall. Rather than wait for potential government regulation, they took preemptive action. Allergan's CEO pledged to limit price increases to once per year and by single digits. Other companies followed suit, establishing a new norm of 9.9% annual price increases.
This strategy allowed pharma companies to appear responsible while avoiding more stringent government regulations. It's a prime example of how corporations can use the guise of social responsibility to protect their interests.
Limiting the Business Judgment Rule
To combat this type of corporate misbehavior, Ramaswamy suggests limiting the scope of the business judgment rule (BJR). This legal principle protects corporate directors and officers from being sued for making bad business decisions, provided they didn't have a conflict of interest.
The author proposes expanding the definition of conflicts of interest beyond just financial terms. For instance, a pharmaceutical company board member with political aspirations might have a conflict of interest when making drug pricing decisions. By limiting BJR protection in cases where executives use corporate resources to support personal social causes, companies might think twice before engaging in woke capitalism.
Wokeness as a New Religion
The Case of Emmanuel Cafferty
Ramaswamy argues that wokeness has evolved into a quasi-religion, complete with its own set of beliefs, rituals, and punishments for transgressions. He illustrates this point with the story of Emmanuel Cafferty, a truck driver who was fired for unknowingly making a hand gesture associated with white supremacy.
Cafferty, who is Latino, was tricked into making the "OK" sign by another driver who then photographed him and shared the image online. Despite the innocent circumstances, Cafferty lost his job due to the gesture's association with alt-right ideology.
Religious Discrimination in the Workplace
The author contends that the firing of employees who don't subscribe to woke ideology could be considered a form of religious discrimination. He draws parallels between wokeness and other belief systems that have been legally recognized as religions in the workplace.
Ramaswamy cites the case of a company called CCG, which implemented a program called "Onionhead" that taught employees that "choice, not chance, determines human destiny." When CCG fired employees who rejected Onionhead, the US Equal Employment Opportunity Commission sued the company for religious discrimination.
The author argues that wokeness meets the EEOC's definition of a religion and that employees fired for not adhering to woke principles could potentially have legal recourse under Title VII of the 1964 Civil Rights Act.
Corporate Complicity with Foreign Dictators
Airbnb's Data Sharing with China
Ramaswamy explores how corporations, while presenting a woke image at home, often comply with the demands of authoritarian regimes abroad. He cites the example of Airbnb, which regularly shares data about American users with China's ruling Communist Party (CCP).
The company's chief trust officer, Sean Joyce, resigned in 2019 after raising concerns about this practice. When Joyce voiced his worries to senior executives, he was told, "We're not here to promote American values."
The CCP's Influence on American Companies
The author outlines how foreign dictators, particularly China's Xi Jinping, have learned to exploit American companies' woke image. The process typically follows this pattern:
- A company cultivates a virtuous image by promoting woke causes.
- It gains consumer trust and monetizes it through clicks, ads, and fees.
- The company amasses a large amount of user data.
- The CCP demands access to this data in exchange for allowing the company to operate in China.
- The company complies and profits from the Chinese market.
- The company remains silent about Chinese human rights abuses while continuing to signal support for woke causes in the US.
This arrangement allows companies to maintain a facade of virtue while aiding oppressive regimes. Meanwhile, they act like dictators themselves in the US market.
Big Tech's Censorship During the Pandemic
Ramaswamy points out that during the COVID-19 pandemic, tech giants like YouTube banned videos critical of lockdown policies, claiming they contained medically unsubstantiated content. The author argues that this approach was nonsensical, as opinions about lockdowns are just that – opinions, not factual statements.
He suggests that tech companies may have had a vested interest in supporting lockdowns, as they led to increased use of services like Amazon, Zoom, and Netflix. However, Ramaswamy believes the motivation goes beyond profit, arguing that Silicon Valley also seeks raw political power.
Big Tech's Unchecked Power
The New York Post and Hunter Biden Story
Ramaswamy uses the example of Twitter's handling of a New York Post article about Hunter Biden to illustrate the power of Big Tech companies to control information. Just before the 2020 presidential election, the Post published an article alleging that Hunter Biden had used his father's name for leverage in business dealings in Ukraine.
Twitter responded by banning users who shared the article, preventing its distribution through private messages, and suspending the accounts of some New York Post editors and journalists. While Twitter CEO Jack Dorsey later admitted the company had mishandled the situation, the incident demonstrated Big Tech's ability to shape the flow of information, potentially influencing democratic processes.
Section 230 and Its Consequences
The author attributes much of Big Tech's unchecked power to Section 230 of the Communications Decency Act of 1996. This law provides immunity to Internet Service Providers (including social media platforms) for content published on their platforms. It also protects them from liability for restricting content they deem objectionable.
While the law was originally intended to protect children from accessing inappropriate content online, Ramaswamy argues that it has enabled the exponential growth of companies like Facebook and Twitter. These tech giants now use their Section 230 protections to censor content they dislike, effectively controlling the information diet of millions of Americans.
Proposed Solutions
Rather than completely repealing Section 230, which could harm smaller social media competitors, Ramaswamy suggests amending the law. His proposal would require companies benefiting from Section 230 to adhere to First Amendment standards. This would force tech companies to choose between continuing to benefit from Section 230 protections or moderating and censoring user content – but not both simultaneously.
The Void Filled by Wokeness
The Bastardization of Community Service
Ramaswamy argues that the rise of wokeness is partly due to the degradation of genuine community service in American society. He shares his personal experience as a high school student, where "volunteering" at a local hospital was merely a means to pad college applications rather than a genuine act of service.
This phenomenon, he contends, is widespread. Community service has been reduced to a transactional activity done for personal benefit rather than altruistic reasons. As a result, many young Americans have never experienced true service to others, creating a void that wokeness fills.
The Appeal of Woke Slogans
The author points out that popular woke slogans like "defund the police" or "dismantle the nuclear power structure" don't necessarily help anyone. However, they make those who utter them feel righteous and noble. Corporations exploit this feeling by echoing these slogans, further entrenching woke culture.
Mandatory Civic Service as a Solution
To address the root cause of wokeness, Ramaswamy proposes mandating civic service for all high school students. He cites a 2017 Gallup poll showing that 49 percent of Americans support mandatory civic service for young people.
The author suggests integrating service into students' summer breaks, allowing them to choose causes they're passionate about. This approach would serve multiple purposes:
- It would give students a genuine sense of meaning, filling the void that wokeness currently occupies.
- It would help develop a shared identity as Americans, countering the divisive aspects of woke ideology.
- It would teach young people the value of real service to others, rather than performative activism.
The Consequences of Woke Capitalism
Distortion of Democracy
Throughout the book, Ramaswamy emphasizes how woke capitalism distorts American democracy. When corporations use their economic power to push social and political agendas, they're effectively bypassing the democratic process. Instead of citizens debating and voting on issues, corporate entities are increasingly shaping public opinion and policy.
Erosion of Trust
The author argues that woke capitalism erodes public trust in institutions. When companies present themselves as champions of social justice while engaging in questionable practices behind the scenes, it breeds cynicism among the public. This erosion of trust can have far-reaching consequences for social cohesion and democratic participation.
Global Implications
Ramaswamy's exploration of how American companies interact with authoritarian regimes like China's CCP highlights the global implications of woke capitalism. By prioritizing profits over principles in their international dealings, these companies undermine the very values they claim to uphold domestically.
Threat to Free Speech
The author's discussion of Big Tech censorship underscores the threat that woke capitalism poses to free speech. When powerful corporations can control the flow of information under the guise of promoting social justice, it creates a chilling effect on open dialogue and debate.
Final Thoughts: Reclaiming American Identity
Ramaswamy concludes by emphasizing the need for Americans to rediscover a shared identity. He argues that wokeness teaches people to focus on their physical differences while ignoring the deeper qualities that unite them as Americans.
By addressing the bastardization of service through initiatives like mandatory civic service, Ramaswamy believes that Americans can begin to bridge the divides created by woke ideology. This shared experience of service could help foster a sense of national unity and purpose, countering the divisive effects of woke capitalism.
The author's ultimate message is a call for vigilance and action. He urges readers to be aware of how corporations are using social justice causes as a smokescreen for their own interests. By understanding these tactics, citizens can make more informed decisions and work towards a more genuine form of social progress – one that isn't dictated by corporate interests but emerges from true democratic engagement and shared civic responsibility.
In "Woke, Inc.," Vivek Ramaswamy presents a compelling critique of how corporations have co-opted social justice movements for their own gain. He challenges readers to look beyond the virtuous facades presented by companies and consider the broader implications of allowing businesses to shape social and political discourse.
While some may disagree with aspects of Ramaswamy's analysis or his proposed solutions, the book undoubtedly raises important questions about the role of corporations in society, the nature of authentic social progress, and the future of American democracy in an era of increasing corporate influence.
As readers digest the ideas presented in "Woke, Inc.," they are encouraged to think critically about the messages they receive from corporations, the true motivations behind corporate social responsibility initiatives, and how they can contribute to meaningful social change beyond the framework of woke capitalism.
Ultimately, Ramaswamy's work serves as a wake-up call, urging Americans to reclaim their agency in shaping the values and direction of their society, rather than ceding that power to corporate entities driven primarily by profit and self-interest. Whether one agrees with all of his conclusions or not, "Woke, Inc." provides a valuable perspective on one of the most significant cultural and economic trends of our time.