There’s a growing divide between how companies approach issues such as sustainability and diversity, equity and inclusion (DEI). As public scrutiny grows, organisations face a crucial decision point where their approach to these issues shapes their market position.
Recent US political shifts have created a ripple effect across global business practices. The response has been decidedly mixed: whilst some companies have retreated from their DEI commitments, others have doubled down, viewing these challenges as differentiation opportunities. The implications extend far beyond American borders. Research indicates that nearly 70% of UK employers anticipate that scaling back of DEI efforts in the United States will influence domestic workplace practices.
Onclusive’s latest Brand Influence Report examines this evolving landscape during significant political and socio-economic turbulence. The findings reveal that attitudes towards DEI and sustainability initiatives vary dramatically across regions, creating both opportunities and obstacles for multinational organisations.
For organisations seeking to effectively manage their external and internal reputations, the challenge lies in addressing fragmented public opinion whilst preserving authentic messaging. Speaking to diverse stakeholder groups without alienating key audiences has become increasingly complex.
The stakes extend beyond reputation management. Historical reliance on environmental, social, and governance (ESG) criteria in investment decisions and employee preference for ethical businesses now faces scrutiny. Are stakeholders beginning to prioritise financial performance over perceived values?
Companies that navigate successfully are emerging as thought leaders, whilst those that falter risk being left behind in an increasingly polarised marketplace where media perception carries unprecedented weight.
Matching principles with business performance
Some companies show that purpose-driven leadership may still offer a strategic advantage. Microsoft, for example, emerged as the highest-ranked company for sustainability communications globally, supported by its commitment to becoming carbon negative by 2030, and has not rowed back on their commitments despite the change in political mood music. Their comprehensive approaches extend beyond carbon reduction to encompass broader environmental impacts, creating blueprints other organisations increasingly look to follow. Their continued commitment demonstrates the value of brands building credibility, matching clear commitments with authentic communication.
Meanwhile, companies like Apple, who received the highest DEI score (89/100), continue to champion DEI despite mounting political pressures. These organisations maintain robust programmes and transparency reporting while others retreat, demonstrating that principled leadership can withstand external criticism and chatter.
This commitment isn’t limited to global technology companies. Closer to home, Tesco has achieved standout visibility in DEI communications, ranking fifth globally. Unilever continues to play a prominent role in UK sustainability coverage, partially driven by its goals to reach net-zero emissions by 2039.
What unites these examples isn’t just strong messaging – it’s alignment between internal commitments and external communication. In doing so, these brands have secured not only media presence but media trust.
Political winds of change
Many organisations find themselves caught between purpose and politics. As regulatory environments shift and stakeholder expectations evolve, brands must continually recalibrate their strategies.
A number of organisations and global brands that have pulled back from DEI or sustainability-related commitments and dialed down proactive communications. Whether due to cultural backlash, regulatory headwinds or perceived business risk, the decision to retreat has consequences.
When organisations retreat from commitments to their consumers, they risk more than a loss of visibility. In many cases they also risk losing control of the narrative. Stepping back can create a vacuum, inviting increased media scrutiny and speculation. While rollbacks may appease certain audiences, they often provoke backlash from others, especially when perceived as inconsistent or insincere. The reputational risk is significant: sudden reversals can undermine credibility, alienate stakeholders, and cause lasting damage to a brand’s long-term reputation. Put simply, you have to understand your audience.
The credibility challenge
Whilst there are risks in rolling back DEI and sustainability commitments, some organisations demonstrate that conventional brand influence can remain strong even when sustainability and DEI communication lags behind.
It’s clear that in the ever fast paced media environment both driven by traditional and social media platforms, many organisations are content to blend into the background. Rather than lead public conversations on DEI or sustainability, they engage selectively, choosing moments to connect with stakeholders while avoiding proactive stances.
This poses an intriguing ‘influence paradox’ as leading organisations and brands willing cede ground in the DEI and sustainability arena, only to maintain overall and wider brand influence by engaging in areas they deem to have less risk. Does this mean DEI and sustainability commitments and communications influence are dwindling and will this only continue in this current political climate?
Tactically such an approach may yield positive results, one has to question whether it’s a fool proof strategy in the long term. Authenticity still matters and an approach that is reliant on the mantra of ‘out of sight’ equals ‘out of mind’ may not hold up to the intense modern media environment where scrutiny has never been higher.
The authenticity imperative
The mounting expectations from employees, regulators, consumers and investors present organisations with a defining moment: embrace meaningful change or watch competitors pull ahead. Companies may sustain short-term market presence without robust DEI and sustainability programmes, but lasting success requires genuine commitment to these priorities in ways that resonate with target audiences.
Modern corporate influence extends far beyond traditional visibility metrics. True market leadership stems from authentic purpose, established credibility, and the boldness to champion meaningful causes. For HR professionals, this means ensuring that internal culture and practices align with external messaging – authenticity cannot be sustained when there’s a disconnect between what companies say and how they actually treat their people. This growing divide between progressive and static brands continues to expand, creating an urgent imperative for organisations to evolve rather than question whether change is necessary.