Does DEI Impact Corporate Reputation?

Does DEI Impact Corporate Reputation?

In the wake of the Trump Administration’s dismantling of federal diversity, equity, and inclusion (DEI) programs, high-profile companies on both sides of the Atlantic have watered down their own DEI initiatives. 

What impact, if any, has this had on their corporate reputation? 

Our exclusive research suggests very little.  

Take Target.  

Though the US retail giant’s Trust & Like Score has slipped in the wake of its decision to roll back its DEI initiatives, our data shows three things: 

  1. Target's reputation was in decline long before the recent controversy
  2. It's not (yet) facing a reputational crisis
  3. Its reputation is falling partly because it's previously been vocal about its social values, whereas companies that haven't made similar commitments appear to have avoided reputational damage.

A cruel irony, but a crucial perspective that our research helps illuminate.  

Our research also reveals what we’re calling “the corporate reputation paradox” regarding DEI. 

While 36% of Americans claim they would trust companies more for scaling back DEI initiatives, the data also reveals that such changes have virtually no measurable impact on corporate reputation.

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Because there seems to be a gap between how Americans think about DEI policies per se and their perceptions of individual companies.    

And because — on this issue at least — perceptions are largely shaped by pre-existing political attitudes rather than corporate actions themselves. 

What’s more, the same action may land as visionary to one group and alienating to another — a balancing act that leaves overall reputations intact.   

💬 All of which begs a question we’d love to hear fellow communications leaders answer:   

How well do you know your stakeholders? 

As in, how well do you know your customers, your employees, your suppliers, and your investors, among others?  

And more to the point, do you know them well enough to test the boundaries of what truly impacts trust in your brand? 

Dive deeper into the research here


🔔 Just Launched: Season Two of ‘Always On’ 

We’re excited to announce the return of our podcast Always On. Episode one features Frank X. Shaw , Chief Communications Officer of Microsoft , who explains why trust and innovation are core pillars of its brand strategy: 

“If you're not doing interesting things in the world, you're not going to be in business very long as a technology company. And if you're not trusted, people won't use the interesting things that you're creating.” 

Hit subscribe wherever you get your podcasts so you don’t miss an episode — future guests include chief communicators at GEA, IKEA, and many more! 

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🚀 Reputation Renaissance for Europe’s Defense Industry

Talk of Europe’s rearmament has sparked a remarkable transformation in the reputation of the continent’s defense leaders.

Our new study examines perceptions of 10 major defense companies across France, Germany, and the UK — revealing dramatic shifts in stakeholder attitudes that challenge long-held views of defense firms as static entities. 

This evolution underscores how strategic initiatives can redefine industry reputation — even in traditionally conservative sectors. 

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🚗 Report Reveals Dwindling Interest in EVs  

Our new reputation report on the Automotive Sector combines three years of research with real-time stakeholder tracking to explore shifting perceptions within the industry. 

Key findings include waning enthusiasm for EVs, with consumers citing cost, battery life, and charging infrastructure as barriers to adoption. 

Dive into our comprehensive new report here

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🏦 Sector Snapshot Shows US Banks Under Pressure 

Our new mini-report on the reputation of the banking sector focuses on the enduring impact of turbulence in the United States, including the collapse of Silicon Valley Bank and Signature Bank in March 2023 — the third- and fourth-largest banking failures in US history.  

This snapshot reveals how trust in banks has eroded among key stakeholder groups in the US, including political independents, high-income individuals, and men. It also highlights demographic fault lines and country-specific differences in perceptions of banks. 

Stay informed about how these shifts are shaping reputational trends across the sector.

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🗞️ In The News 

The Financial Times cited our DEI data in a column about the potential consequences for companies “bending the knee” to the Trump administration.  

Retail Brew cited the same data in an exclusive story about fading enthusiasm for Target after it “caved” on DEI. 

Fortune cited Caliber data published in Handelsblatt, highlighting Tesla's declining corporate reputation following Elon Musk’s role in the Trump Administration. Read more about this reputational fallout here

Forbes cited our automotive report data in a story about “California’s love affair with Tesla” ending. 




 

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