Amazon last week announced plans to release a “behind the scenes” documentary about Melania Trump produced by the incoming US first lady herself. The tech giant reportedly added $4,000 to the exclusive deal just weeks after donating $1 million to her husband Donald Trump’s inaugural committee and pledging to livestream the ceremony on its Prime service. He reportedly paid $1,000.
Amazon founder Jeff Bezos also canceled plans for the Washington Post, which he owns, to endorse Trump’s Democratic rival before the November presidential election. Immediately after the election, he spoke favorably of President Trump’s “energy for regulatory cuts” and made a personal pilgrimage to have dinner with the president-elect at his Mar-a-Lago mansion.
In the wake of President Trump’s victory, tech billionaires, investors and leaders of America’s most prominent consumer groups are trying to fit in with the Trumps as they rush to adapt to a more conservative zeitgeist. Corporate executives across the U.S. are echoing Bezos’ urgent stance. And Republicans won an overwhelming majority of both houses of Congress.
Reflecting the rush in 2020 for companies to support social justice movements in the wake of the police killing of George Floyd, companies today are increasing their engagement with customers, employees, and society at large. We are currently rebuilding our approach.
Some of the moves, including a parade of CEOs visiting Trump in Florida, donations and business efforts with people close to him, are aimed at currying favor with Trump, who is known for attacking companies and executives he dislikes. It seems to be the purpose.
But this election has accelerated a broader shift toward a return to more conservative social and political positions and an embrace of unfettered capitalism.
Companies are eliminating diversity, equity and inclusion departments, cutting support to racial diversity charities and leaving climate organizations. They are also removing anything that could be considered “woke” from public statements, corporate documents, and advertising.
The election prompted some executives to speak out in favor of conservative policies, from tax cuts to traditional gender roles.
“There is a lot of conservative pressure in this political climate, and people are just looking forward to a change of government,” said Trier Bryant, a former DEI executive at Goldman Sachs and Twitter.
Last week, the social media group Meta exemplified all the developments at once. The company scrapped its content moderation policy, added longtime Trump friend and Ultimate Fighting Championship CEO Dana White to its board of directors, moved its chief diversity officer to a new role, and The company dropped its goal of increasing racial and gender diversity among management and suppliers.
Founder Mark Zuckerberg later joined a podcast hosted by Trump supporter Joe Rogan and lamented the rise of “culturally neutral” companies. “I think having a culture that celebrates aggression a little bit more has its own very positive benefits,” Zuckerberg said.
Liberal politicians and investment activists are appalled. “It’s very troubling to see corporate support for Mr. Trump,” said Brad Lander, New York City comptroller and sustainable investment advocate. “We’ve seen too many examples throughout history of how democracy and fundamental rights weaken over time.”
But companies, executives and analysts say the motivations driving this change are complex and reflect more than a desire to pander to the next president.
The changing mood among customers is that court rulings and state and federal regulatory investigations, particularly last year’s U.S. Supreme Court decision outlawing affirmative action in universities, have weakened the foundations of diversity and climate change programs. management insists.
For many, the new administration offers a welcome opportunity to roll back some of the stricter rules enacted during President Joe Biden’s administration and bend tax and regulatory policy in their favor.
Goldman Sachs CEO David Solomon recently praised the incoming Trump administration for “executing a strategy for growth.”
“I’m very optimistic that this administration will implement very pro-growth policies,” Solomon said at a Reuters event.
In a preemptive effort to mend fences, technology industry leaders have made some of the most high-profile gestures against President Trump and conservative values. Apple’s Tim Cook, Google’s Sundar Pichai and OpenAI’s Sam Altman join Meta’s Zuckerberg and Amazon’s Bezos in pledging $1 million to Trump’s inaugural fund. Mr. Pichai also flew to Mar-a-Lago. Trump previously claimed that Google was “rigged” to hide positive coverage of him.
“This shows a lack of confidence and backbone among technology executives,” said Jeffrey Sonnenfeld, senior associate dean for leadership studies at the Yale School of Management. He said their contributions to President Trump’s inauguration serve as a “tithing plan” for the president-elect.
In the financial sector, the most notable change since President Trump’s election concerns climate change. All major Wall Street banks and several large asset managers have pulled out of industry groups seeking to use their financial power to reduce carbon emissions.
BlackRock, the target of conservative state investigations and lawsuits over its past support for sustainable investing, last week raised legal and regulatory questions about its withdrawal from the Net Zero Asset Managers initiative. clearly mentioned.
Even the way people on Wall Street talk and interact is changing. Mr. Trump’s victory has forced bankers and financial leaders to self-censor or change their language to avoid hurting their younger colleagues, women, minorities, and people with disabilities, angered by “wokeism.” People who felt that this was the case said they were encouraged.
“I feel liberated,” said one top banker. “We can say ‘late’ or ‘shit’ without fear of being cancelled. . . . It’s a new dawn.”
Some Wall Streeters feel they can openly embrace making money without subscribing to broader social goals. “Most of us love America and capitalism as much as Trump does, so we don’t need to kiss ass,” one person said.
Meanwhile, consumer groups are increasingly careful to avoid appearing “woke,” far from provoking boycotts like those faced by Target and Bud Light over marketing glorifying gays and transgender people. There is. The backlash began long before the election.
But the shift to the right has progressed so quickly that some groups have been pushed out. After the recent terrorist attack in New Orleans, Tom Wilson, CEO of insurance group Allstate, said, “Overcoming our addiction to division and negativity will make us stronger together.” “It’s necessary,” he said, drawing intense criticism.
Conservative activists accused Mr. Wilson of minimizing murder while promoting progressive causes, saying his company sponsored high-profile American football games in the city. Allstate sought to explain that the statement “reflects a broader commitment to fostering trust and positivity in communities across the country.”
Another big change for companies has been in their approach to DEI, especially since the June 2023 Supreme Court ruling against race-based college admissions hiring. Companies including Harley-Davidson, Ford, and Molson Coors began reducing corporate diversity in the months that followed. This decision trickled down into a flood after President Trump’s victory.
Walmart no longer considers race and gender when signing contracts with suppliers, ended racial equity training for staff and pledged $100 million to create a racial justice system after George Floyd protests Defunded the Equality Center. Last week, McDonald’s announced that it would drop its targets for the proportion of women and non-white managers, stop requiring suppliers to sign a DEI pledge, and that its diversity team would now be called the Global Inclusion Team.
Both companies pointed out not only legal issues, but also changes in the situation. McDonald’s said it is committed to inclusion, but cited an “evolving landscape.” Walmart said its changing approach “demonstrates our willingness to change with our employees and customers who represent every corner of America.” We are on a journey and we know we are not perfect, but every decision we make comes from the idea of wanting to foster a sense of belonging. ”
Consultants and other corporate advisors said the changing landscape also gave companies ways to reconsider or scrap environmental and diversity goals that they weren’t meeting anyway.
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“They don’t want to find out they made a promise and didn’t deliver,” said Richard Edelman, chief executive officer of the public relations group Edelman, which advises business leaders. “Companies are still committed to diversity and inclusion, but they just don’t want to guarantee results.”
It’s unclear whether the conservative pivot will outlast the progressive positions companies put forth in 2020. Bryant, a former DEI executive and current CEO of consulting firm Pathfinder, said many of the policy shifts seem to be aimed at: It’s about easing political scrutiny, not substantive policy change.
“Maya Angelou said, ‘When people show themselves, believe it.’ When companies show themselves, believe it,” she said.
Brooke Masters, James Fontanella Kahn, Gregory Meyer, Taylor Nicole Rogers and Patrick Temple West report in New York, and Tabby Kinder reports in San Francisco.
