Branding in a Politically Charged World: Stand True or Stand Down?

The Paradigm Insights Series

Branding in a Politically Charged World:

Stand True or Stand Down?

Brian Fallers
Chief Brand Officer

Once upon a time, brands could exist in a blissful, apolitical vacuum. But those days are gone. Today, consumers demand more than just products—they expect values, stances and most importantly, consistency. But how does a brand navigate this political minefield without alienating its core audience?

The answer?
With care, conviction and a deep understanding of its cultural DNA.

The Perils of Losing Brand Authenticity

When brands enter the political and social arena, their approach can either solidify loyalty or spark outrage. Consider the contrasting responses from Target and Costco when faced with socio-political pressures.

Target: A Cautionary Tale of Overcorrecting

Target, long known for its progressive leanings, has often embraced diversity and inclusion in its marketing and product offerings. However, their recent experiences highlight the dangers of reacting too swiftly to backlash.

What Happened?

Target prominently featured LGBTQ+ Pride merchandise in its stores, consistent with its past practices.
A backlash from conservative groups led to protests, threats and vandalism.
Target quickly adjusted its strategy—moving or removing some Pride-themed products to de-escalate tensions.

The Fallout

This retreat angered both sides. Conservative critics saw it as too little, too late, while progressive and LGBTQ+ supporters felt betrayed by the brand’s quick reversal. The result? A sense of inconsistency that eroded trust.

Market Value Decline: Target lost $12.4 billion in market value, with shares dropping 15% in one week.
Boycotts: Target faced a 40-day consumer boycott, further impacting sales.
Legal Fallout: Investors filed a class-action lawsuit alleging that Target misled them regarding DEI risks.

Costco: A Lesson in Staying the Course

On the other hand, Costco has built a reputation on its unwavering commitment to its employees and values. When faced with similar pressures, its response was notably different.

What Happened?

Costco has long emphasized fair wages, employee benefits and diversity without making performative marketing moves.
When questioned about its stance on socio-political issues, Costco didn’t flinch. It reinforced its long-held values of fairness and inclusivity without issuing reactionary statements or sudden pivots.

The Outcome

By not scrambling to appease every wave of criticism, Costco retained its credibility. Customers and employees knew where the company stood—steadfast and aligned with its longstanding principles.

Strong Financial Performance: Costco’s membership base grew 7% in 2024, with a renewal rate of 90%.
Wage Commitment: Despite labor cost increases, Costco maintained its profit growth, proving that investing in employees strengthens brand loyalty.

MLB’s Silent DEI Shift

Retailers aren’t the only ones reevaluating their stance on diversity, equity and inclusion (DEI). Major League Baseball (MLB) recently took a quieter approach—removing all references to its DEI initiatives from its website without public explanation.

What Happened?

MLB previously featured a full section on diversity programs, hiring commitments and supplier diversity.

By early 2024, those pages disappeared—without an official announcement or media statement.

The move follows growing political scrutiny of corporate DEI efforts, with critics arguing that diversity mandates are unnecessary and divisive.

What It Means for Brands

Unlike Target, which pivoted too visibly and too fast, MLB’s approach suggests that some brands may opt for quiet policy shifts instead of public reversals. However, silence has its own risks—employees, partners and socially-conscious consumers may still notice and react accordingly.

The question remains: Does removing diversity commitments de-escalate controversy, or does it create new distrust? In an era of transparency, brands choosing stealth over clarity may find themselves facing a backlash anyway.

The Key Takeaways: How Brands Can Stay Authentic

What can brands learn from these contrasting responses?

Consistency Is Key

Consumers don’t just value what you stand for—they value whether you stand firm when the pressure is on. Sudden reversals, like Target’s, create perceptions of inauthenticity. If your brand has a history of supporting a cause, maintain that commitment through thick and thin.

Purpose Over Performative Activism

Customers can tell when a brand is virtue signaling rather than making a genuine impact. Costco’s approach is rooted in action—employee wages, benefits and inclusive hiring—rather than splashy campaigns that are easy to walk back under pressure.

Silence Can Be a Strategy, But It Comes with Risk

MLB’s quiet removal of diversity messaging is a calculated move—avoiding direct backlash but still raising eyebrows. Brands that shift without transparency risk alienating both employees and customers.

Know Your Audience, But Don’t Be Everything to Everyone

Trying to please both ends of the political spectrum is a losing game. Instead of chasing temporary approval, brands should align their external messaging with their internal culture.
• Target flip-flopped, leading to a loss of trust.
• Costco stood firm, reinforcing stability.
• MLB took a quiet exit, avoiding a loud controversy but risking silent discontent.

Let Actions Speak Louder Than Marketing

Marketing can be fleeting, but cultural commitment is enduring. Target’s Pride campaign may have been well-intentioned, but it wasn’t backed by unwavering resolve. In contrast, Costco’s focus on diversity and fair treatment is embedded in its business model.

Employee-Centric Decisions Win Long-Term Loyalty

A brand’s most valuable ambassadors are its employees. Costco’s employee-first approach creates a workforce that genuinely believes in the company’s mission. When brands prioritize their people, external messaging falls into place naturally.

The Bottom Line: Brand Authenticity in a Politicized Market

Brands can’t afford to be silent on issues that matter, but they also can’t afford to flip-flop based on public outcry. The path forward lies in knowing who you are, standing by your values and letting your actions reinforce your message.

In the end, brands that navigate today’s political climate successfully aren’t the ones chasing trends. They’re the ones that build trust by being clear, consistent and deeply connected to their core beliefs.

So, the question for brands isn’t whether to take a stand—but whether they’re prepared to stand by it.

Brian Fallers
Truelio’s Chief Brand Officer
Founder of Paradigm

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