Navigating the Current Political Climate: Reasserting Your Organization's Values
Recent political events in the US present an opportunity to reassert your organizations’ values. Will you flinch or stay the course? Are you looking for short-term comfort or long-term legacy?
The Current Landscape
Since the 2025 presidential inauguration, many companies are backing away from their prior commitments to sustainability and DEI. Major companies, who had previously embraced these commitments publicly, are now rushing to align themselves with Trump’s self-proclaimed anti-“woke” agenda.
If you think the current backlash against ESG and DEI smacks of McCarthyism, then you may also find hope in knowing that just like McCarthyism it will not last. But while it does, CEOs should lead by maintaining not only their ESG and DEI policies themselves, but also by communicating about unwavering values.
European Perspective
Although the current backlash is U. S.-centric, even the European Union wobbled slightly in response to Trump. Nevertheless, European companies - including giants like Deutsche Bank - have held firm on their commitments to financing sustainability. More recently, French Economy Minister, Eric Lombard, said Trump’s views of DEI, “are not ours.”
European investors consistently reward companies that show their environmental and social goals add value. According to recent studies by McKinsey and Boston Consulting Group, investors want companies to place those goals in context, and prove that they are integral to strategy and value creation, not just empty promises. Such studies predate the second Trump administration, so even if investor sentiment can change quickly, long-term strategy should not.
Taking the Long View
Taking the long view now will set your company apart from the many others that are complying pre-emptively i.e reacting to Trump’s potential threats, not actual consequences, such as law firm Paul Weiss.
If you’re fully committed, this is your moment to stand out. As others backpedal or stay silent, reinforce your leadership by aligning actions with values and engaging employees to create long-term value. L’Oréal’s CEO, Nicolas Hieronimus -- recently reaffirmed, “the unwavering commitment of our teams and the deep integration of sustainability into our business model.”
If you are still committed but have started to flinch, you can adjust your ESG roadmap while staying true to your underlying principles. For example, a company that still believes in climate action can rebase its ESG targets for higher costs and longer delays without renouncing core values.
Communicating Your Values
Communicating on ESG/DEI merits careful consideration in the current context. What are the consequences to your reputation? ESG and/or DEI rollbacks may offer a short-term gain in the current political environment but may also signal weak leadership that is prone to flip-flop. As anticipated, some companies, such as Target, are now facing a backlash from consumers who are boycotting their products after they rolled back their commitment to DEI.
A company that does something privately without owning it publicly takes a risk, too. JPMorgan Chase, for example, is continuing its diversity efforts but avoids publicizing them. Is CEO Jamie Dimon letting actions speak louder than words? Or is he trying to fly under the radar? Trumpeting your support for ESG and DEI shows full-throated commitment - but also makes you a target of the current administration.
“If you keep changing your strategy and your values every four months, how can you expect people to follow you?” said Alexandra Palt, former head of Corporate Social Responsibility at L’Oréal. She continued, “Without a clear and stable vision, you’re just a ship lost in the storm.”
History will judge how leaders have navigated this passage. But you don’t need to wait for history’s verdict. Your leadership is defined by the choices you make today.