01-05-2025
How Corporate Activism Has Changed During Trump's Second Term
Over the past several months, many companies have gone from embracing corporate activism to distancing themselves from it. Compared to when Joe Biden was president, the shift in activism has become obvious in President Donald Trump's first hundred days of his second term in office.
For example, 'during the Biden Administration, corporations went to considerable lengths and expended significant dollars on DEI-related consultants, policies, and programs. Additionally, corporate America publicized its committment to 'going green'—a continuation of the Obama-era trend,' Matt Klink, president of Klink Campaigns, a strategic communication firm, explained to me in an email interview.
Compare that to what has happened since Trump's inauguration in January. 'Corporate activism has shifted noticeably. Many companies that once made bold public commitments to racial justice, environmental stewardship, or human rights are now recalibrating. whether they are softening their public stances or retreating into quieter, internal efforts,' Elika Dadseta, CEO and executive director of Visions, a nonprofit leadership training firm, told me via email.
Compared to four years ago when companies issued press releases about their committment to DEI and other hot-button social issues, you're more likely today to see headlines of how businesses are pulling the plug on them on those initiatives.
Business leaders appear to be 'pulling back from overt displays of social responsibility. For some brands, commitments to environmental sustainability and social justice are being deprioritized, whereas others are shifting their approach, emphasizing action over rhetoric and choosing to 'walk the walk' even if they no longer 'talk the talk' as loudly,' Hannah Elderfield, director of Strategic Insight, observed in an email interview with me.
There are several reasons for the shift away from DEI and other corporate activism goals. They include blowback from conservative quarters, criticism from shareholders, pressure from Trump, the impact of his executive orders, and actions by regulatory agencies.
'Corporate America's pivot away from diversity, equity and inclusion initiatives accelerated during the first 100 days of President Donald Trump's second White House term. The backlash against programs that focus on DEI was already gaining ground over the past year, but it hit a fever pitch with the election of Trump and a series of executive orders he said were aimed at purging 'illegal DEI' from across the U.S.,' Bloomberg reported.
Some businesses might be forced to backtrack on their activism because of pressure from corporate owners.
'Ben & Jerry's has been a stalwart in the activism space for decades. No company comes close even while we have been talking about purpose marketing for more than a decade. Sadly, that competitive edge may disappear because Unilever forced out the company's CEO, even while they had a hands-off agreement with the ice cream subsidiary,' Mara Einstein, a marketing expert, observed in an email message to me.
Rather than abandon their commitment to activism, some businesses are taking a softer and less obvious approach. 'For organizations with authentic values-driven commitments, we are also seeing a quiet evolution: a deeper investment in internal accountability, employee trust, and grassroots stakeholder engagement. Rather than large public statements, some companies are focusing on embedding activism into their business practices, such as supplier diversity, ethical AI, sustainable operations, and transparent labor practices,' Dadesta of Visions pointed out.
Other companies are showing their commitments to corporate activism in more pragmatic ways by integrating them into activities that help strengthen ties to the communities they serve.
'Corporate activism has matured fast during Trump's second term. Companies are realizing they cannot just signal good intentions; they have to drive meaningful outcomes…For example, during the California wildfires, lululemon opened their stores and donated new clothing to people who were displaced from their homes,' Sam Fankuchen, founder and CEO of Golden, a volunteer and donor management platform, pointed out via email to me.
After the fires were put out, the company made a point of explaining its role in helping people who were affected by the crisis.
'Community has always been at the heart of lululemon, and as restoration efforts continue in the wake of the Los Angeles wildfires, the power of coming together remains stronger than ever. Over the last two months, lululemon teams have been on the ground, working alongside grassroots organizations to support ongoing relief efforts for families, local Ambassadors, and small businesses as they rebuild,' according to a statement on the company's website.
This type of corporate activism can be a win-win for companies by making it harder for others to condemn and criticize their actions while helping to fulfill a business' goal of being a good corporate citizen.
