Perspective: PR Agencies Can't Rewire Their Capitalist DNA. That's Why They Keep Failing

(MENAFN- PRovoke) When Starbucks, McDonald's, and Target stumbled into activist-driven crises over the past two years, it wasn't just corporate leadership that failed. Their PR agencies, tasked with safeguarding reputations, mitigating backlash, and guiding brands through turbulence, also collapsed under pressure. These firms, steeped in the logic of image control and shareholder appeasement, offered slow, scripted, and shallow responses while activists moved swiftly, demanded substance, and framed the narrative.

It wasn't a tactical failure. It was a structural one. Most legacy PR agencies simply do not have the DNA to respond to this moment because their very existence is tethered to the priorities of capitalism. They're built to protect profits, not people. And today's activist movements are demanding the opposite.

Boycotts That Shook Balance Sheets

In late 2023, Starbucks became the target of global boycotts after its union, Starbucks Workers United, posted pro-Palestine content. Instead of facilitating accountability and dialogue, Starbucks' legal team sued the union, and PR agencies deployed standard disclaimers, distancing the brand from the message. This legalistic and detached approach, prioritizing brand control and perceived profit stability over genuine engagement with human rights concerns, reflected a clear profit-first mentality. The damage was done: the company lost over $11 billion in market cap over two months, franchisees in the Middle East reported severe losses, and labor unrest spread. A people-first approach would have involved immediately engaging with the union and affected communities to understand and address the underlying concerns, perhaps even issuing a statement acknowledging shared human values, rather than resorting to litigation and distancing.

Similarly, McDonald's found itself at the center of a boycott after franchisees were seen supplying free meals to Israeli military personnel. The company's PR consultants issued vague statements about inclusivity and community, but never addressed the substance of the protest. This studied neutrality, aimed at avoiding alienating any consumer segment and thus protecting sales, demonstrated a reluctance to take a clear ethical stance. In Q1 2024, McDonald's reported its first global same-store sales decline since the pandemic, a direct result of the boycott's power. A people-first response, by contrast, might have involved a clear condemnation of the franchisee's actions, a donation to humanitarian aid, or a public commitment to ethical sourcing in conflict zones, even if initially unpopular with some.

In early 2025, after rolling back Pride displays and scaling down internal DEI infrastructure, Target was hit with a counter-boycott led by Black community leaders. A 40-day protest campaign ensued. Florida's Attorney General filed a lawsuit claiming the company misled investors about its DEI risks. Analysts estimated a significant loss in value, with some reports citing approximately $12.4 billion in market value wiped out around February 2025, while a lawsuit from the Ohio Attorney General's office claimed an estimated $25 billion in value was tanked from Target's stock. The reversal of DEI commitments and subsequent attempts at crisis management showed a corporate priority of placating a vocal minority to protect sales, rather than upholding stated values, reinforcing the "capitalist DNA" in action. A values-driven approach would have involved transparently reaffirming DEI commitments, engaging in genuine dialogue with all stakeholders, and accepting short-term financial volatility for long-term trust.

Even when agencies want to do better, they're constrained by client expectations, approval layers, legal risk, and boardroom fears. They end up writing poetic apologies for brands unwilling to change; and delivering "solutions" that deepen public cynicism.

What Comes Next

If PR is to survive as a credible force in this new era, it must evolve far beyond reputation management. It must become a tool for moral alignment, cultural accountability, and community engagement. That means:

Embedding affected communities in messaging decisions: This means moving beyond traditional focus groups to actively co-create messaging with activist groups or establishing direct, transparent feedback loops with community leaders. For instance, instead of crafting a message about a community, a brand facing a crisis might invite local leaders to directly inform or co-draft public statements, ensuring their concerns and language are authentically represented and amplified. This shifts PR from "speaking for" to "listening to" and "amplifying."

Prioritizing truth and action over optics: This implies moving beyond superficial Corporate Social Responsibility (CSR) initiatives to genuine systemic change. It demands a willingness to admit fault, take tangible steps to rectify harm, and communicate progress transparently, even if it's imperfect. PR professionals would become internal advocates for substantive policy changes within their client organizations, rather than just crafting messages around existing policies. For example, a company accused of unethical labor practices would not only issue an apology but also announce a binding agreement with labor unions, commit to independent audits, and publicly share audit results, with PR's role being to facilitate this radical transparency.

· Building teams that include organizers, not just consultants.

· Structuring incentives around impact, not impressions.

But these aren't tweaks-they're transformations. And many legacy firms will resist them, because they threaten the very foundations of how agencies operate, staff, charge, and report. This transformation will not be easy; it demands courage from PR leaders to challenge long-held assumptions and push clients beyond comfort zones.

A Final Warning

The next wave of activist pressure will be even more sophisticated, coordinated, and morally urgent. Traditional agencies-still clinging to the illusion of neutrality and their inherent capitalist DNA-will find themselves irrelevant or adversarial. They will not only lose clients to more agile, values-aligned firms, but they will also face increasing public distrust, talent drain as purpose-driven professionals seek out more ethical environments, and ultimately, a diminished role in shaping public discourse. Without a fundamental rewiring of their capitalist DNA, these agencies will find themselves not just failing to manage crises, but becoming part of the crisis itself, seen as enablers of corporate inaction rather than facilitators of genuine change.

If PR wants to remain useful, it must pick a side. The time for centrist comms is over. The public is demanding clarity. And clarity, in this moment, means courage-not calibration.

Gur Tsabar is the Executive Director of the Movement Media Hub , a pro-bono and scaled-fee communications agency that serves organized communities, forward thinking organizations and social justice movements across North America.

Note: This article reflects the views of the author and is published as part of PRovoke Media's opinion section. It does not necessarily represent the views of PRovoke Media or its editorial team. We welcome a range of perspectives and invite readers to submit thoughtful responses or counterpoints for consideration to [email protected] .

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