What Does Buying Ports Have to Do With Communications?
In early 2021, BlackRock’s CEO Larry Fink wrote a now famous letter to the World Economic Forum at Davos, Switzerland. In it he urged companies to disclose how they are preparing for a net zero world and they disclose “long-term plans to improve diversity, equity, and inclusion…” An ardent supporter of ESG & DEI policies, BlackRock used its incredible investing clout to propel these initiatives forward by literally putting its money where its mouth is.
Fast-forward to last week where BlackRock announced it’s purchasing ports at the Panama Canal, ports owned by a Hong Kong company. We know our current U.S. president wants to take back the Panama Canal and we also know he does not like China (yes, I’m very aware of Hong Kong / China relations*, let’s assume the current administration and its supporters just views it all as “China”). In similar timing, BlackRock also announced the ending of its DEI programs.
Okay. BlackRock loved ESG & DEI policies, did everything to promote this narrative, and I’m fine with saying: is now actively and publicly trying to cozy up to the Trump Administration. Let’s zoom out:
Days after Trump’s second inauguration, Target announced the end of its DEI programs and is currently undergoing a boycott because of it
Disney followed suit and announced its making changes to DEI efforts in a February letter to employees
A quick Google search** reveals similar rollbacks “have been seen across big names such as Amazon, Google, McDonald’s, Meta, Target, and Walmart”
**who also caught heat last month for pulling Black History Month and other similar observances from its Calendar app
Our Takeaway
The patron saint of ESG & DEI investing has abandoned his post and is actively converting to the opposite religion — to the tune of $23 to $24 billion — while similar vanguards have followed suit. More will follow. As communicators, the counsel we must give our clients is this:
Identify what you believe, why you believe it, and how those beliefs are expressed
Prepare for backlash — communicate as planned
Business turbulence will follow, ask yourself: Is the juice worth the squeeze?
This is often where these decisions go wrong. They’re identifying and sharing ‘new’ beliefs without considering the following steps. Rapidly-changing times are the best times to have thought through and built out a communications plan that anticipates and is prepared for what comes next.
We’ve already seen a 45% drop in Tesla’s stock price since its December 2024 highs — Sheryl Crow waving goodbye to her Tesla is not just noise, it is the signal. Can corporations withstand active and angry consumer sentiment, have they asked themselves “juice/squeeze”?
A lot more squeeze is likely coming.
*have you ever had to color code an island on a map of a Company’s website because they were getting flack from their home government?
