“We had to change some language on our website,” explained a CMO at a $750 million tech company, “to address the lightning rod issues.” Righteous Drew wanted to push back and say, “If every company does this, aren’t we all being complicit?” Coach Drew held his tongue. There’s a lot at stake right now, and not just for businesses with government contracts.
The Weight of a Brand Promise
Enough with the code, what’s the real issue here?
One word: Trust.
Every established brand is a promise. That promise combines both its words and actions over time. A brand that promises to be a good corporate citizen and demonstrates its commitment via actions earns goodwill with multiple stakeholders, including employees, customers, prospects, partners, and influencers. A sudden shift in actions (like dropping DEI or ESG programs) can break that goodwill and or diminish trust.
Get real, Righteous Drew. Aren’t the risks of non-compliance with the new political correctness too great to stand on one’s high horse?
Indeed, much of the S&P 500 thinks so. The New York Times reported last week that the language “diversity, equity and inclusion” has been scrubbed from 200 of the 350 S&P 500 companies that had mentioned it. According to the NYTimes, many felt obligated to do so based on “an executive order that instructed federal agencies to investigate ‘illegal D.E.I.’ in the private sector.”
It’s even more serious for companies or institutions dependent upon government or red-state contracts. If they want to keep these contracts or get new ones, they must scrub their websites of the 30 or so trigger words, such as diversity, equity, inclusion, and climate change. We’re talking about millions of dollars and thousands of jobs.
A Word Swap or a Walk-Back?
Aren’t most of these big companies just using different words?
Yes, some are. These companies are softening or replacing words like “equity” with “belonging” or “inclusiveness” with “fairness.” In these cases, the policies, programs, and staffing behind the words aren’t changing. Coach Drew approves.
Other companies, big and small, have not just abandoned the words; they’ve eliminated the programs. Now we’re in reputational damage territory. Certain stakeholders will wonder if they can ever trust the company again. Righteous Drew is fretting.
Costco decided not to change its DEI policies, while Walmart did. Both brands have a lot at stake. Thus far in 2025, CostCo’s stock is down 2%, while Walmart’s is down 6%. It's too early to measure the impact (if any) these changes will have on revenue, employee retention, etc., but it will be fascinating to watch them play out. Righteous Drew thanks Costco for its bravery.
This Isn’t Just Marketing’s Problem
Bottom line: This decision to change your corporate policies is way bigger than marketing. C-Suites and investors need to be part of the conversation. For a guide on how marketers can help guide these conversations, check out the link to my
post on
RenegadeMarketing.com.
Written by Drew Neisser