The Walt Disney Company has made the decision to exclude the term "Diversity, Equity, and Inclusion" (DEI) from its latest business report, a departure from the inclusion of such a section over the past six years. This change comes amid scrutiny over the company's recent approach to content production and its financial performance at the box office.
Disney's adaptation of "Snow White," which made the creative choice to use computer-generated imagery instead of characters traditionally known as the dwarves, is one of several productions that have faced criticism for underperformance. The move was initially intended to avoid perpetuating outdated stereotypes. However, some audiences and critics have perceived Disney's content direction as being influenced by what they describe as a "woke" agenda, particularly in films intended for children audiences.
The company's shift in messaging appears to be a response to various factors, including financial outcomes. Fox Business reported that Disney's 2024 business report included a DEI section that emphasized the goal of building teams reflecting the life experiences of audiences while supporting a diverse range of voices in creative and production roles.
In the backdrop of these developments, the Federal Communications Commission (FCC) has initiated an investigation into Disney's DEI practices. FCC Chairman Brendan Carr communicated the commencement of this inquiry to Disney, stating a commitment to a thorough investigation.
The investigation follows controversy sparked by an undercover operation by James O’Keefe’s Media Group (OMG), which recorded a Disney executive expressing a reluctance to hire White males for certain roles. This revelation contributed to the debate over the company's hiring practices and its impact on content.
Disney's theme parks have also experienced a downturn, with Magic Kingdom's attendance dropping by 15% from 2019 figures, totaling approximately 17.8 million visitors in 2024. Nevertheless, Disney complied with President Donald Trump's order to lower American flags at half-staff at the Walt Disney World Resort, following the death of former Vice President Dick Cheney.
The public and online conservative voices have reacted to Disney's recent move to omit DEI from its report. Some suggest the decision is financially motivated, citing the principle of "Go Woke, Go Broke," implying that companies prioritizing political ideology over market preferences may suffer economically.
Despite these challenges, Disney is poised to launch an array of new films, including anticipated sequels and franchise installations such as "Zootopia 2," "Avatar: Fire and Ash," "Toy Story 5," "Moana," "Spider-Man: Brand New Day," and "Avengers: Doomsday."
The outcome of Disney’s strategic shift away from explicit DEI language in its reporting, along with the FCC's findings, may have far-reaching implications for the entertainment industry's approach to content creation and corporate governance.
