The Walt Disney Co. warned investors that the corporation’s pursuit of social goals could harm profits.
The company made the disclosure in its Form 10-K filing with the Securities and Exchange Commission for the last fiscal year.
As a public corporation, Disney is required by U.S. law to file a 10-K report every year.
A 10-K report notifies investors and the government about the risks and liabilities the company faces, its performance in the market, agreements, and the status of its operations.
“We face risks relating to misalignment with public and consumer tastes and preferences for entertainment, travel and consumer products, which impact demand for our entertainment offerings and products and the profitability of any of our businesses,” the company’s 10-K filing noted.
“Generally, our revenues and profitability are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance,” the company said in the report.
“Further, consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brands,” the 10-K filing said.
In a piece Wednesday on the blog That Park Place, Lew Ghost criticized Disney’s mention of “social goals” in its 10-K annual report, saying it was a tactic by the company to hedge itself should investors raise concerns about any adverse impact Disney’s pursuit of social goals has on its fiscal obligations to investors.
“What the hell business does a public for profit company have enacting/espousing ‘social goals’??? I haven’t read a zillion 10k’s but a few and I’ve NEVER seen a company say ‘Hey, we’re in business to please our customers but we have SOCIAL GOALS and if they don’t like them and aren’t pleased, screw ’em and we risk all on that.’ EVER,” Ghost wrote.
“In fact, I’m sure the language is there because their lawyers insisted ‘IF you’re gonna go social like this you HAVE to warn people it is a risk so they cannot come back and say “I thought you were like every RATIONAL company I invest in and wouldn’t DO this stupid crap!”‘”
The mismatch between consumer preferences and the company’s social goals — especially its drive to include pro-LGBT material in content for children — has had an impact on its figures.
SCOOP: I’ve obtained video from inside Disney’s all-hands meeting about the Florida parental rights bill, in which executive producer Latoya Raveneau says her team has implemented a “not-at-all-secret gay agenda” and is regularly “adding queerness” to children’s programming. pic.twitter.com/eJnZMpKIXT
— Christopher F. Rufo ⚔️ (@realchrisrufo) March 29, 2022
In its annual report, Disney acknowledged a 14 percent fall in “impressions” or viewership, according to Breitbart.
The company also experienced a decline in licensing revenue for merchandise from legacy brands such as “Star Wars,” “Frozen” and “Toy Story,” Breitbart reported.
“Those are bottom-line brands, legacy brands, golden geese that have never stopped producing,” Breitbart commentator John Nolte wrote. “For nearly 100 years, Mickey Mouse was infallible. For more than 40 years, Star Wars was infallible. For nearly 30 years, Toy Story was infallible.
“But Disney’s despicable and evil ‘social goals’ now appear to be damaging three of the most universal and beloved brands ever created.”
The company is no stranger to financial losses related to its position on cultural issues.
In September, Disney CEO Bob Iger told investors that he wanted the company to “quiet the noise” on the culture war after the company’s clash with Florida Gov. Ron DeSantis over the state’s Parental Rights in Education legislation harmed profits.
“Our primary mission needs to be to entertain … and to have a positive impact on the world,” Iger said.
“I’m very serious about that. It should not be agenda-driven,” he said.
This article appeared originally on The Western Journal.