Senior executives are searching for ways to manage economic uncertainty and reputational risk, while still staying true to their core values. I’ve explored how inclusive leaders can help employees navigate uncertainty, but after recent conversations with C-suite executives and board members across multiple organizations, it’s clear that leaders themselves need support.
Along with the general anxiety and stress everyone is facing right now, organizational leaders have the added responsibilities of steering a company and safeguarding its profitability. They can find strength and build resilience by focusing on fundamental principles, staying agile, and understanding the risks inherent in every decision.
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Focus on the fundamentals
Just like legendary football coach Vince Lombardi, leaders win when they focus on the fundamentals. In sports, business and life, our core values anchor us and help guide us through every decision. One bedrock truth is that the well-being of the workforce allows leaders to drive financial performance. Put more simply, if leaders take care of employees, they will take care of the company’s customers and clients.
Most of the boards I've worked with, even those that lean conservative, agree with that statement. For example, one organization was grappling with a decision about its diversity, equity and inclusion (DEI) programming. The leadership team was feeling pressure to roll back their efforts, yet they knew that their inclusive strategies helped them serve their clients better. DEI was helping them recruit and retain top talent. It shaped their talent pipeline, how they promoted and mentored people. That organization had woven diversity, equity and inclusion throughout their business model.
Keeping in mind that workforce well-being drives financial performance, one clear question had to be answered: If they were going to disband their DEI programming, what were they going to do instead?
The answer was to focus on the desired outcome—creating a better workplace for all. Once that baseline was established, we could have a conversation about strategy and next steps.
Keep what matters; change everything else
When your mission is crystal clear, the details on how to accomplish that goal can be fluid. For me, the language to describe how we’re creating better workplaces doesn’t matter, because I’m laser-focused on the results—just like the leaders I described. If corporate boards and executive teams choose not to talk about DEI right now, that’s fine. Instead, we can talk about other ways to improve organizational culture and create better workplaces.
Many organizations have rebranded their initiatives to avoid media scrutiny or political backlash, while maintaining their fundamental objectives. They promote “business resource groups,” “workplace excellence initiatives,” and “diversity of thought.” My talking points are about inclusive leadership, psychological safety and employee engagement. These factors are crucial to high-performing teams, innovative problem-solving, and profitable organizations. They are also key ingredients for inclusive, welcoming workplaces.
Being flexible and adaptable doesn’t mean that I’m abandoning my principles. I’m simply choosing the most effective path forward. My commitment to creating inclusive, high-performing workplaces hasn’t changed. What’s changed is the landscape. When language becomes politically charged or distracts from meaningful progress, I’m willing to shift how we talk about the work, as long as the outcomes remain the same. This isn’t about giving in—it’s about getting through. By meeting people where they are, I can bring more leaders into the conversation, expand our impact, and stay focused on results that matter.
Acknowledge risks in every decision
While focusing on core values can add clarity to difficult decisions, it is still easy to become distracted by perceived risk and external pressures. I’m not saying leaders shouldn’t be aware of risks, but there are risks and unintended consequences in every decision. As Target has seen, abandoning commitments to workplace inclusion risks alienating customers, impacting revenue and reputation. Foot traffic at the retailer has fallen for seven consecutive weeks, starting days after Target announced it was rolling back its DEI program. Meanwhile, foot traffic at Costco has risen for 12 consecutive weeks, since the company refused to end its DEI initiatives.
Other risks of scaling back culture-building initiatives include:
· Less innovation – Companies with diverse teams generate 19% higher revenue from innovation. Without DEI, you risk losing fresh ideas and market competitiveness.
· Talent drain – Employees are three times more likely to quit companies that don’t prioritize inclusion. Losing top talent means higher hiring and training costs.
· Customer loss – Unchecked bias on the frontline leads to poor customer experiences, costing companies millions in lost revenue and damaged brand reputation.
A visionary leader weighs the risks against the potential rewards, their core values, and the impact of that decision on key stakeholders, particularly employees and customers. They also gather as much information and as many perspectives as possible, so the final decision is well-informed and fact-based. For example, concerns about legal compliance are valid, especially in the wake of changing laws. Those questions should prompt leaders to review their inclusion policies with their legal team, not end the programs.
Acknowledge obstacles with honesty, vulnerability and hope
As CEOs and senior executives, we have a responsibility to acknowledge the risks and the challenges facing us yet stay hopeful about the future. This balance of clear-eyed reality and unwavering faith is the key to resilient leadership.
Dr. Kennette Thigpen Harris, Chief Clinical Officer at Workplace Options, explains: “Leaders and managers don’t need to have all the answers, especially in a political or economic landscape where variables are constantly shifting. What they do need, however, is to communicate clearly, acknowledge challenges, and articulate a shared path forward.”
I see the obstacles in front of me, my colleagues, our clients and business partners. I read the news reports, and I watch the stock market. At the same time, I wouldn’t be in this business if I didn’t believe that corporate America can do better. We can create workplaces that champion diverse viewpoints; we have the power to create equitable opportunities for underrepresented professionals. It is possible to create organizations where all employees feel a sense of belonging—without sacrificing financial gains.
Lombardi also famously said, “Quitters never win, and winners never quit.” That is the essence of resilience—a core value that I hope will inspire you as much as it does me.
Executive leaders are feeling the pressure to balance compliance, stakeholder expectations, and business continuity—while fostering an inclusive culture. If you’re seeking guidance on how to navigate these turbulent times, my team and I have created the “Risk, Reputation, and Resilience Executive Workshop.” We can help you develop actionable plans that balance immediate needs with long-term objectives.
About the Author
Donald Thompson, EY Entrepreneur Of The Year® 2023 SE Award-winner, founded The Diversity Movement, a Workplace Options Company, to fundamentally transform the modern workplace through diversity-led culture change. Recognized by Inc., Fast Company and Forbes, Thompson is author of Underestimated: A CEO’s Unlikely Path to Success, hosts the podcast “High Octane Leadership in an Empathetic World” and has published widely on leadership and the executive mindset. His new book is The Inclusive Leadership Handbook: Balancing People and Performance for Sustainable Growth, co-authored with Kurt Merriweather, Vice President of Marketing and Innovation at The Diversity Movement. Follow Thompson on LinkedIn for updates on news, events and his podcast, or contact him at info@donaldthompson.com for executive coaching, speaking engagements or DEI-related content.