From tariffs to regulatory reforms to anti-immigration policies, the cloud of Donald Trump’s second presidency hangs over American and global businesses.
One department has already endured a public storm under air pressure from conservative activists: corporate diversity, equity, and inclusion (DEI).
At Adcolor’s annual conference in Los Angeles last month, members of the advertising industry told ADWEEK that they determined to reverse politicized thinking around DEIpositioning it as a global growth lever.
However, for the CEOs and CMOs that agencies serve, DEI communications will only become more complicated in the age of Trump 2.0, as executives eschew activist leadership to avoid alienating already divided consumers.
Walmart is the latest (and biggest) brand to roll back its DEI initiativesannouncing last week that it would no longer use the term “DEI” in official communications and would no longer consider gender and race when offering contracts to vendors.
Jeannette Nagy, CEO of crisis communications consultancy Clifftide, has seen an increase this year in the number of CEOs seeking advice on solving DEI issues, which she attributes to political polarization and changing expectations stakeholders.
She talks about crisis-induced sensitivity, that is, how inclusive campaigns from brands like Jaguar, Bud lightor Walgreens subsidiary Boots can become a lightning rod for controversy and conservative backlash, is also to blame.
The rise and fall of activist leadership
In 2018, under the previous Trump administration, CEO activism was the trend du jour. Former PayPal boss Dan Schulman took a stand against gender-specific bathroom rules in North Carolina, while others, like Apple’s Tim Cook and Starbucks ex-Howard Schultz, have spoken out publicly on everything from LGBTQ+ rights to racial inequality.
Public commitments to DEI became even more prevalent in 2020 after the killing of George Floyd sparked nationwide protests against racial inequality.
This time around, however, CEOs were “reactive rather than proactive” in their communications about Trump’s second victory, Nagy observed.
“While some leaders have taken steps to prepare for increased polarization, many are reluctant to directly address the implications of the Trump era for fear of alienating stakeholders,” she added. “This hesitation can leave a void, allowing outside narratives to dominate. »
Trump already has notable bosses on his side, including X owner and Tesla CEO Elon Musk, whose support has earned him a place as political effectiveness czar. Others, particularly those who had reason to fear retaliation from the president-elect, were complimentary rather than dismissive of Trump after his victory.
The bosses of JP Morgan and Goldman Sachs, for example, circulated post-election notes congratulating Trump. Tech CEOs concerned about regulation, including Facebook’s Mark Zuckerberg, Apple’s Cook and Google’s Sundar Pichai, contacted Mr. Trump directly in the weeks and months leading up to the first vote, reported the New York Times.
Rollbacks and DEI removal
Long before the red wave set in on November 6, the marks began eliminate both internal DEI programs and marketing initiatives. Earlier in 2024, Ford abandoned DEI quotas, while Loewe’s stopped sponsoring LGBTQ+ pride parades and Harley Davidson reduced targets for minority and women-owned spending suppliers.
In November, immediately after the elections, Boeing quietly dismantled its entire DEI departmentaccepting the resignation of its vice president and reassigning staff to other departments, including HR.
“DEI hushing,” where companies no longer brag about their progress or highlight their shortcomings, is also on the rise. 2023 data from financial research platform AlphaSense found that mentions of “ESG,” “diversity, equity and inclusion,” “DEI,” or “sustainability” during quarterly calls with investors were down 31% year-on-year. year.
For Elly Dembo, global head of data and intelligence at McCann Worldgroup, leaders will have a tightrope to walk between policy and target in 2025.
When it comes to speaking out on hot-button issues, McCan’s recent Truth Central study, which surveyed 2,400 people in all 50 states, found that 71% of Americans expect brands to stand up for what what they believe in. However, only 19% think brands should make political statements.
“At a time when people across the country are feeling uneasy, it’s no surprise that they’re looking for stability as they look to the future: 73% of Americans say they would prefer live in a country that is always stable rather than always stable. change,” Dembo said.
She added that people are looking for brands that help create stability, while remaining true to who they are – creating a delicate balance that allows leaders to meet society’s demands without going overboard.
DEI repositioning
While the ad industry is still preparing for Trump’s victory, Sheryl Daija, founder of Bridge, an organization that helps companies implement DEI initiatives, is optimistic that agencies and brands will be able to work to disentangle DEI from politics in 2025.
“DEI has become confusing with ESG and purpose, rather than something that should apply across the entire company,” she said. After the murder of George Floyd, she observed how brands “rushed” to present themselves to the black community: “Instead of finding [DEI] practitioners, they identified people of color in the marketing department as ‘DEI people,’” she explained.
She said this had led to “high performance” engagements from brands and a misconception that DEI was “just about talent”. The conservatives were able to seize it and turn it into a political tool.
An administration open to listening and learning?
Bridge added four new members to its network in the two weeks after Trump’s election, Daija revealed, including a “huge Fortune 500 brand.” She believes these registrations, which exceed the usual registrations the organization expects to see in this time frame, represent a hunger on the part of businesses to depoliticize the issue and move forward rather than backward.
She has no doubt that the president-elect will be a harbinger of change for DEI departments. Indeed, Bridge has just published an introduction to what “Project 2025” a 900-page policy “wish list” of proposals from the right-wing think tank Heritage Foundation, could impact business.
“When you hear the new administration talking about DEI like it happened yesterday, you can hear a total misunderstanding and misconceptions about what they think it is,” she said. “I wish we had an administration that was open to learning, but I’m not sure that’s the case.”
For Nagy, the best thing marketers can do is anchor their DEI message in the company’s values and goals, so that it is not seen as a response to external pressure, and therefore open to attacks. “It’s less about politics and more about organizational integrity,” she said.
Internally, she wants brands to encourage open dialogue with employees and recognize different perspectives while reinforcing the importance of inclusion for long-term success.
“Consistency in action and communication builds trust and credibility,” she said.
