He who shouts loudest wins . . . or does he?

Written by Verity Barr – Board Director – Head of Brand Communications

In the first week of President Trump’s second term, he passed numerous Executive Orders targeting Diversity, Equity and Inclusion (DEI) programmes and reversing climate change policies, chipping away at commitments and values that companies across the globe had put at the heart of their corporate strategies.  

Brands had made those commitments not just because they genuinely believed in their ethical basis but also because they aligned with the vast majority of consumers’ expectations. They were the right thing to do, surely? 

You’d have thought so. But, in the face of a rising wave of populist politics, with right-leaning politicians and influencers calling out ‘woke capitalism’ and ‘corporate over-reach’, brands are having to make tough decisions.  

Do they double down on their beliefs and stay true to their values or do they recalibrate or retreat, aligning themselves with the new political order. And for those that do the latter, have they made the right choice? 

Take Tesla as an example. With the brand becoming increasingly associated with Elon Musk’s personal political views, Tesla’s share price dropped 35% in the first quarter of this year – as Musk’s political profile grew. Most analysts are directly linking the two and we wanted to test that theory. 

Working with YouGov, we asked members of the public if they would support or oppose a company moving away from DEI and environmental sustainability initiatives in reaction to political pressure. Just 27% said they were supportive. 

What does that tell us? The answer is simple. Consumers want the brands they buy from to stay true to their values. To be consistent in their commitments, even when external pressures shift. To align their actions with their customers’ beliefs. 

In other words, consumers value authenticity. It’s the bedrock of trust and loyalty and the brands who define what they truly stand for – and stand by it – are the brands who will win out in the long run. 

Which is why we’ve created the Authenticity Advantage – a unique diagnostic framework powered by proprietary and secondary data that allows us to assess how authentically a brand is perceived, and identify strategic opportunities to retain or rebuild corporate brand reputation.  

Based on the four components we’ve identified as being critical to authenticity: ability, authority, alignment and accountability, we draw on thousands of data points to advise business leaders on the reputational challenges they’re facing and create strategic opportunities to restore trust and cement brand leadership. 

To launch the Authenticity Advantage, we’ve taken a deep dive into this crucial balance of power between political influence and public perception in our latest report: Brands Under Pressure. In the report, we draw on original insights to look at the consumer view in more detail, and we introduce the Authenticity Index: a measure of how authentic eight critical sectors are perceived to be. 

To download a copy of the report, click here.