The phrase “go woke, go broke” is often used by critics of corporate social responsibility. It implies that companies face a binary choice: embrace progressive values or pursue profit.

But this dichotomy between “wokeness” and capitalism is both simplistic and increasingly out of step with corporate reality.

Many companies are learning to navigate a middle path. They are embedding social, environmental and ethical considerations into their business strategies – not in spite of profit, but because it contributes to long-term value creation.

Understanding this shift – and the backlash to it – is fundamental to grasping modern corporate responsibility.

Our research examines the growing tension between evolving “woke” agendas within firms and the enduring demands of shareholder value, known as “shareholder revanchism”.

We explore this dynamic using academic Archie Carroll’s Pyramid of Corporate Social Responsibility, where economic responsibility forms the foundation for higher legal, ethical and philanthropic obligations.

Ultimately, we argue for a reassessment of the prevailing emphasis on shareholder profit and short-termism. Directors should adopt a more balanced approach when pursuing profit and discharging their duties.

The idea that directors must choose between shareholders and stakeholders – between profit and progressive causes – has deep roots in law and economics.

For decades, shareholder primacy prevailed in global business. This principle was famously reinforced in court decisions such as the 1919 Dodge v Ford case in the United States.........

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