Escaping the Pendulum: Building a Durable Strategy in Turbulent Times
Today, organizations are operating at the intersection of business, policy, politics and culture. At any given moment, one of these forces may outweigh the others, but none can be managed in isolation, and shifts in one increasingly create second- and third-order effects across the others.
The current operating environment in the United States is defined by sustained political volatility, shifting regulatory direction, technological acceleration and heightened stakeholder scrutiny. Cultural expectations are fragmenting, and economic pressure is building across sectors, with many organizations preparing for potential restructuring, cost actions and workforce disruption. This all sits on top of a burgeoning affordability crisis.
While publicly available data may paint a slightly prettier picture if you squint, the prevailing zeitgeist is a mix of anxiety and pessimism.
Earlier this year, FleishmanHillard’s Global Executive Advisory and TRUE Global Intelligence teams released License to Lead, a comprehensive global study that includes and compares the opinions of 1,550 business and political leaders and 4,000 engaged consumers — a new, modern definition that identifies proactive individuals who have recently taken multiple, tangible actions tied to a company’s values and reputation. Now, we are looking more closely at the market-by-market findings and how the results illuminate the new Modern Communications playbook required to win in today’s moment.
The results of the global survey demonstrated a clear and growing constraint on leadership: while stakeholders recognize the need for companies to adapt, they are far less willing to tolerate poorly explained or inconsistent change. In the United States, those dynamics are significantly more pronounced.
As multiple major forces converge — the 2026 midterms, AI-driven workforce realignment, intensifying geopolitical competition and economic fragmentation — the conditions for a reckoning are becoming clear, and many companies are not prepared.
What many organizations fail to recognize is that their reputational vulnerability is not simply a function of the positions they have taken, the programs they have changed or the cultural debates they have entered or avoided. It is the result of repeated, and often poorly contextualized, swings in direction that have created stakeholder confusion and eroded trust.
Over the past five years, companies have shifted positions on social issues, policy stances, sustainability commitments and political engagement — often dramatically. Some of these moves were grounded in conviction. Others were responsive to legitimate stakeholder pressure. But many were reactive to changing administrations, misread consumer sentiment or followed the political and cultural momentum of the moment.
Adaptability, of course, is now table stakes. In fact, 51% of engaged consumers say the ability to adapt quickly to change will be the most important leadership capability over the next decade. But adaptability without coherence is not seen as strength. It is seen as instability.
Companies are not being given a free pass. Increasingly, they are perceived not as leaders guided by enduring principles, but as weathervanes — chasing culture, chasing power and chasing whoever holds the microphone at any given moment.
The Pendulum Problem
When a company loudly commits to a social position, philanthropy program or workforce commitment and then quietly retreats when the political climate shifts, it does not go unnoticed. In fact, our research shows that 98% of engaged consumers say they are actively monitoring corporate follow-through, and nearly half (48%) say that inconsistent or conflicting messages from company leadership greatly decrease their confidence.
This is the reputational trap that most companies have not anticipated: stakeholders will accept a company’s need to adapt if it is properly explained. What they will not forgive is the sense that a company’s values are for sale — that leadership convictions shift with political winds rather than enduring principles.
This vulnerability is directly connected to what determines whether a company has the “License to Lead” — the stakeholder permission to execute strategy, navigate change and pivot when necessary, without losing legitimacy. The research is stark: stakeholders grant confidence based on demonstrated integrity (76%) and accountability (74%), and they rank ethical behavior (24%) and clear communication (21%) as the highest factors in determining whether a company has the “right to lead.”
A company that swings drastically from position to position or appears to chase political power rather than authentic values forfeits that permission. Here’s why: stakeholders do not trust a leader whose compass keeps spinning. If a company’s stated values and policy positions are contingent on who is in power, employees question whether to invest their loyalty. Investors worry about the stability of leadership judgment. Customers wonder whether they can rely on the company’s commitments. Policymakers lose confidence in the company as a credible partner.
And when the next political shift comes — and it will — that company will have no reservoir of stakeholder trust to draw from. Most executives are also vastly overestimating how well they are bringing stakeholders along. The consequences can be dire.
The credibility gap is already visible: just 11% of U.S. engaged consumers are very optimistic about large companies’ ability to address major challenges, and only 10% have “a lot” of confidence that large corporate leaders will act in the best interests of society. When confidence is lost, the response is not abstract. In the past 12 months, 64% of U.S. engaged consumers stopped buying or significantly reduced spending with a company, 49% switched to a competitor’s products or services and 46% privately advised friends or family against the company after a company’s action caused them to lose confidence. The upcoming 2026 midterm elections will test corporate authenticity and consistency. Companies with positions that shift significantly based on political circumstances may face questions about the credibility of their commitments. Conversely, companies that have done the harder work of building genuine stakeholder alignment around enduring principles, explaining the “why” behind their positions and engaging stakeholders in understanding the tradeoffs will have the permission to navigate the shifting landscape without reputational damage.
License to Lead Facilitates Adaptability Because It Is Built on a Durable Reputation
The companies that earn and retain their License to Lead through political and cultural volatility are those that take clear positions rooted in enduring principles. They project clarity about who they are, grounded in something deeper than the current political moment.
Many companies are struggling to navigate volatility with consistency, and the reputational risks of getting that wrong are growing. This goes directly to credibility, stakeholder trust and long-term resilience. The past several years suggest that the pendulum of corporate response has swung too widely.
At FleishmanHillard, we help organizations narrow that swing by becoming more disciplined, resilient and credible under pressure. Our findings demonstrate that stakeholder confidence – before, during and after critical moments – is entirely within a company’s control. By grounding decisions in authentic values and genuine stakeholder engagement, reputation becomes not a liability to manage, but an enabling force.
Matt Rose is the Americas Lead for Crisis, Issues & Risk Management. An SVP & Senior Partner in New York, he brings more than 30 years’ experience in advising organizations on crisis and issues management, risk mitigation, and reputation recovery. He has guided companies through reputational crises, labor issues, regulatory challenges, ESG controversies, and high-profile litigation.
Geoff Mordock leads Issues Management at FleishmanHillard. He is an SVP & Senior Partner based in Orange County and brings more than 25 years of experience helping organizations manage and shape corporate reputation, including navigating significant crises and issues through critical moments.
Rachel Catanach is FleishmanHillard’s Global Managing Director, Corporate Affairs; General Manager, New York and Boston; and leads the 