For years, diversity was the poster child of modern corporate ethics. Today, even the possibility of political backlash is enough to make companies drop the issue like a hot potato.
Headlines about companies abandoning their diversity goals are now a daily occurrence. And the rainbow flags that once adorned corporate headquarters are ending up in textile recycling bins. Not just in the U.S. – Swiss companies are backing down, too. Preemptively, of course. Out of fear of fines? That would at least be consistent. Premature compliance, so to speak.
And yet, when it came to the so-called “eco-dictates” that so many businesses railed against, this kind of compliance was never an issue. Premature compliance, it turns out, is just delayed authenticity.
The same companies that aggressively oppose corporate responsibility initiatives – claiming extraterritorial laws are a red line – suddenly submit to foreign pressures without protest when it aligns with their interests.
While some firms treat potential fines for legal violations as nothing more than “the cost of doing business” (hello, Credit Suisse), the mere threat of criticism is enough to make them abandon their diversity commitments. Or were those commitments never real to begin with? Just calculated marketing moves?
In the end, it all comes down to priorities:
Who can afford ethics when things get uncomfortable?
And who holds on to them when there’s no money in it?
I’ve always said: I don’t mind if companies make money by doing the right thing.
As long as they still do the right thing when there’s no money to be made.
Today, I have to admit: That was naïve.
A version of these thoughts was published on LinkedIn March 20, 2025, in German. This text has been translated with the help of AI – carefully reviewed and human-approved.
Foto von Steve Johnson auf Unsplash.