We are talking about values again. More intensely, more loudly, sometimes more helplessly than ever before.
For a long time, corporate values were considered guiding principles set in stone, somewhere between motivational posters and marketing slogans. Nice to have, but rarely the core of the business. That is over. The erosion of geopolitical and social certainties, accelerated by digitalization, globalization crises, and a noticeable generational change, is forcing companies to show their colors.
ESG and the Green Deal: Regulatory pressure for more responsibility
Because the discourse has shifted. It is no longer just a question of whether a company has values: the EU's ESG framework, is increasingly obliging companies to think hard about the environment, social conditions, and ethical corporate governance.
More than profit: Stakeholders demand attitude and purpose from companies
In addition, it is also about how authentically these values are lived and how companies behave toward the outside world. Purpose, attitude, social responsibility – these terms have migrated from Sunday speeches to boardrooms and employee appraisals. At the same time, other stakeholders, from critical customers to meaning-seeking talent (hello, Generation Z), are demanding more than just profits. They want to know: What does our company really stand for?
DEI in focus: The burning issue in the current debate on values
At the center of this debate is often the acronym DEI – diversity, equity, inclusion. Once a niche topic for HR departments, it is now a magnifying glass for the question of values. This is where different worldviews collide and the balancing act between corporate aspirations and social reality becomes visible. The expectation is clear: companies should not only sell products, but also take a stand.
A controversial example: Trump's executive order and the geopolitical tensions surrounding DEI
A controversial example: DEI and sustainability. Companies that are committed to these issues are facing growing headwinds. These range from internal skepticism to open political pressure. When US President Trump explicitly classifies DEI programs as “illegal discrimination and favoritism” in an executive order and demands that American, German, French (and other European) companies discontinue their DEI initiatives, it becomes clear that values work is no longer a purely internal matter, but part of increasing geopolitical tensions: The reactions of the French, Spanish, and others are clear. They view the decree as a “reactionary avalanche.” The Spanish Ministry of Labor, for example, stated that the US requirement was a “flagrant violation” of Spain's strict anti-discrimination laws.
The choice for companies: retreat or stand firm on values?
Companies are therefore faced with a choice: retreat out of fear of reprisals or stand firm in the knowledge that, for example, “sustainability” is relevant to important investors (funds) and DEI is non-negotiable for many talented individuals and customers. However, those who back down on values may alienate progressive customers and talented individuals who expect precisely this commitment. Overall, the situation is a minefield.
Two very recent examples: Harvard University is the first (and so far only?) university in the US to oppose the Trump administration's mandated DEI policy. Within 48 hours, the university republished its entire website, including all content and design, with very clear statements that DEI will remain a foundation and core value of Harvard.This is someone who is following their values and doing a really professional job of it.
The reaction of the beleaguered Columbia University points in exactly the opposite direction: the Trump administration's threat of radical funding cuts, which has been described as “blackmail against academic freedom,” has led Columbia to bow to these “ultimatums.”
Strategic necessity instead of a feel-good process: values as a compass in turbulent times
A clear stance on and the struggle for the right values and the right culture is therefore no longer an internal feel-good process, but a strategic necessity. It is the search for a reliable compass in turbulent times.
No easy answers, but an opportunity to remain relevant: the new normal in the discussion about values
The bad news: there are no easy answers. The good news: the discussion itself is a sign of vitality. Companies that face up to it have the opportunity to prove their relevance. Those who remain silent risk being ignored – or worse, being considered irrelevant. Navigating these complex waters is the new normal.
Outlook: what to expect in the coming weeks on the topic of values
Are you interested in this topic? In the coming weeks, we will continue to explore this topic with a variety of different focuses.
The current debate on values is forcing companies to take a stand, with fear of backlash and internal disagreement often leading to hesitation. However, a clear stance, especially on issues such as DEI and sustainability, is increasingly becoming a strategic necessity and a question of identity.
Actively shaping a culture of values requires both gentle nudges and consistent anchoring in corporate structures and management systems.
Ultimately, the conscious choice between silence and action will determine the future relevance and credibility of companies in a complex world. In the coming articles, we will delve deeper into the dynamics of this tension and offer concrete guidance for value-oriented corporate management.
