True corporate values are steadfast principles that guide a company regardless of the political or social climate. Values that are easily discarded when they become controversial are not core values but rather branding exercises. This inauthenticity risks significant consumer backlash when exposed.
Pressuring individuals or brands to speak on every current event is counterproductive. This external demand often leads to 'performative activism'—watered-down, disingenuous statements made out of obligation, not conviction. True impact comes from speaking on issues one genuinely cares about and understands.
Mark Zuckerberg's evolution from a highly media-trained, scripted persona to an authentic public figure shows that the old playbook of message control is dead. The market now rewards leaders who are transparent and genuine ("this is me, deal with it"), even if they are less polished. Synthetically generated authenticity is easily spotted and rejected.
In just five years, the corporate environment has swung from encouraging open discussion on social issues like race to fearing it. This "whipsaw" is driven by ideological extremes on both sides, making it difficult for leaders to find a rational middle ground for authentic engagement.
One-off volunteer days or CSR initiatives are superficial fixes that employees recognize as inauthentic. Purpose must be the core reason a company exists and be embedded in every decision, not treated as a separate, performative activity to boost public image.
Costco is suing the Trump administration over tariffs, not just as a legal strategy, but as a public relations move. It signals to customers that Costco will fight anyone, even the president, to uphold its core value proposition of saving people money.
Activism isn't binary. A 'covert' approach involves expressing values through business decisions like partnerships, hiring, or amplified voices. This is a valid, often safer, alternative to direct 'overt' public statements, allowing for a spectrum of engagement based on comfort and capacity.
For 20 years, Netflix's identity was built on 'no ads, no live sports, and no big acquisitions.' Its recent reversal on all these fronts to maintain market dominance shows that adapting to new realities is more critical for long-term success than rigidly adhering to foundational principles.
A company’s true values aren't in its mission statement, but in its operational systems. Good intentions are meaningless without supporting structures. What an organization truly values is revealed by its compensation systems, promotion decisions, and which behaviors are publicly celebrated and honored.
Maximizing profits in a crisis, such as a hardware store hiking shovel prices during a blizzard, ignores the powerful economic force of fairness. While rational by traditional models, such actions cause public outrage that can inflict far more long-term brand damage than the short-term profits are worth.
From a branding perspective, voters value consistency, even if they disagree with the platform. A politician who flip-flops, like John Kerry, is seen as weak and unprincipled. Therefore, Marjorie Taylor Greene's sudden pivot away from Trump is a high-risk branding move that defies conventional political wisdom about adapting to sentiment.