By Tashi McQueen
AFRO Staff Writer
tmcqueen@afro.com
In 2025, many U.S. private-sector companies have scaled back sustainable and ethical business practices under the 47th U.S. president’s administration, which has discouraged diversity and inclusion initiatives and rolled back sustainability goals.
But experts say, equity and inclusion efforts alongside environmental, social and governance (ESG) goals in business are still necessary for long-term success.
“Employees worldwide look to be a part of cultures that encourage good health, life balance and total wellness,” said Sam Adeyemi, CEO of Sam Adeyemi GLC, a global leadership consultancy.
Adeyemi highlighted a study showing that business leaders receive the benefits of ethical and culturally conscious workplaces.
“According to a survey from the National Bureau of Economic Research, 85 percent of CEOs and CFOs believe that an unhealthy and unwell culture of workers leads to possible unethical behavior, as well as lower productivity,” said Adeyemi.
Still, companies like Walmart, Dollar General and Target have all abandoned their diversity, inclusion and equity commitments in the past year.
In response to the move by Target, more than 200,000 consumers boycotted the store beginning in early 2025, causing the company to lose millions in profits.
According to a press release from Target on Aug. 20, their second quarter net sales were $25.2 billion, 0.9 percent lower than it was in 2024. Their earnings per share was $2.05 in quarter two compared with $2.57 in 2024, resulting in a 20.2 percent lower year-over-year earning per share.
The national boycott, led by the Rev.Dr. Jamal Bryant, is expected to spread to every major company that has rolled back their initiatives.
Adam Freegood, founder of Third Partners, said this is a pivotal moment for business, as companies must navigate changing political, economic and regulatory pressures while staying aligned with consumer priorities.
He still views ESG and ethical business practices as the future.
“What used to be viewed as ‘nice to have’ is now core to strategy and long-term resilience,” said Freegood.
Consumers overwhelmingly want the products they purchase to include eco-friendly products and packaging, improved working conditions for employees, transparency and diversity and equity initiatives.
According to the Deloitte 2025 Gen Z and Millennial Survey, the environment is a major source of anxiety for these two generations, two-thirds of each group, influencing their consumer behavior. About 65 percent of Gen Z’s, (born 1995 to 2006) and 63 percent of millennials (born 1983 to 1994) say they are willing to pay more to acquire products and services that are more sustainable.
“Ethical practices build trust, attract loyal customers and create more sustainable value over time,” he said. “It is about building systems of accountability into the DNA of a business – an activity that requires a focused action plan.”
Even with his continued belief in ESG, Freegood did acknowledge another challenge that remains.
“The tariff rules alone are chaos for manufacturers and a direct risk to ethical sourcing commitments,” said Freegood. “Ensuring ethical, sustainable and transparent supply chains just became even harder, as materials and finished goods are being rerouted all over the world to dodge import taxes.”
Adeyemi said that as business leaders navigate an increasingly interconnected world, empathy, cultural intelligence and collaboration are essential for building meaningful partnerships and driving sustainable success.