It was spring 2020 — the height of pandemic angst — and we had an all-hands meeting at the home furnishings manufacturer where I led brand marketing and sustainability communications. At the time, our supply chains were a mess. Our materials were so backed up at ports in California that it was taking months to fulfill orders. Our customer service team was overwhelmed by angry product purchasers. On the call, our CEO informed us about furloughs, hiring freezes, and company-wide pay cuts. There were tears on the call. I remember just feeling grateful and humbled that I still had a job.
That time was a reckoning for our company. Our response proved critical — we adapted swiftly, evolving our products to circumvent supply chain challenges while doubling down on our core values, increasing our investment in sustainability. Those initiatives, rooted in who we understood ourselves to be as a company, helped fuel rapid growth at the company — and unparalleled positive impact — all while the global economy experienced fundamental changes.
Five years later, the world feels dramatically different — more cynical, divided, and misinformed — particularly around DEI initiatives and corporate sustainability. Meanwhile, the business world faces another shock to the global economic system as tariffs, trade wars, and policy reversals reshape market realities. The turbulence extends to financial markets, where volatile stock exchanges reflect growing investor angst about long-term economic stability.
Faced with uncertainty, many companies are retreating from their sustainability commitments. They’re removing DEI language from websites, softening climate messaging, and postponing regulatory compliance initiatives. This defensive crouch might feel safe in the moment, but it’s a reactive, short-sighted strategy with significant consequences that extend far beyond temporary political cycles.
Target is a great example. The numbers tell a stark story since backpedaling on their DEI commitments — over $12.4 billion in lost revenue and a stock drop of $27.27 per share, according to the Washington Examiner. Beyond the financial hit, they’re now tangled in several lawsuits directly connected to these policy reversals. Target shows how walking back from values-based positions can impact both the balance sheet and brand reputation in today’s market.
Your company’s values shouldn’t shift with political winds. If diversity and inclusion aren't genuinely part of your ethos, that’s a different conversation — but don’t abandon established commitments merely because of a new administration, cautious legal counsel, fear of losing contracts, or backlash from a guy on YouTube. Policy changes should stem from authentic conviction about the future you want to build and are prepared to champion, not from external pressure or momentary convenience.
The proactive, long-term approach is to get real about your values. Moments like this reveal who we are. Are you going to retreat, capitulate, and cower, or use the moment to catalyze your business?
My previous company taught me an invaluable lesson: compromising on values inevitably compromises results. Crises are opportunities to seize for long-term success, not short-term gains. Yes, the reality is that these challenging periods often require doing more with less. But it’s when budgets are tight that we have to get crystal clear on who we are and what actually matters.
Here’s what a roadmap could look like for you and your team:
Identify concrete initiatives that demonstrate your commitment. For us, it meant rethinking materials and supply chains — while remaining true to our values — amid logistical chaos.
The companies that will thrive in the next five years won't be those that retreat at the first sign of headwinds. They’ll be the ones with the courage to stand firmly behind their values and commitments while being agile enough to adapt their strategies. The question isn’t whether you can afford to maintain your sustainability and DEI commitments during turbulent times — it’s whether you can afford not to.