Brazilian brands and political stands

On October 1, Luciano Hang, owner of the Havan department store chain, went online to stream live to his Facebook followers. The broadcast consisted of a company meeting at its headquarters in Santa Catarina, at which Mr. Hang took 40 minutes telling his 200 employees why they should vote for far-right Jair Bolsonaro for president. “No businessman in this country will invest if the Workers’ Party is in the government,” he said at the time. Havan is one of Brazil’s most profitable department stores, having recorded revenues of BRL 5 billion last year.

Mr. Hang then went on to imply that people would be laid off if the center-left party won the election – a statement which resulted in 47 reports of political coercion and an investigation from the public prosecution service. On the other hand, Havan’s Facebook page gained 9,000 followers the following day – 60 percent above growth average.

While the long-term effects of companies taking sides in controversial political issues remain uncertain, the short-term benefits are palpable, as consumers increasingly want their brands to make a stand.

While...