Turning a Corporate Risk into a Brand Opportunity

Straight to the Point

WHAT WE SEE: As the Trump administration takes office in January, companies may be presented with unpredictable corporate reputational risks at a moment’s notice. For an example, just look at McDonald’s. On the campaign trail, McDonald’s was thrust into the spotlight when then-candidate Donald Trump worked a “shift” at a Pennsylvania location. What could have been a divisive company moment turned into a win with nine simple words: “We are not red or blue — we are golden.”

WHAT IT MEANS: Moments like the one McDonald’s faced are going to come up again. When handled correctly, they serve as opportunities for brands to assert their values and turn risky situations into reputational wins.

WHAT TO DO: Articulate your company’s values, remain true to them even when no crisis appears on the horizon, and stay ready to articulate and defend them if an issue arises. Companies that are prepared to do so are best positioned to protect both reputation and enterprise value.

WHAT WE SEE:

As with all incoming Presidential administrations, a second Trump term signals a time for uncertainty for companies and corporate leaders across industries. As we saw throughout President Trump’s first term in office, companies may be presented with unpredictable corporate reputational risks at a moment’s notice. We’ve already seen examples of this happening in the lead up to the election.

In October 2024, when then-candidate Donald Trump worked a “shift” at a Pennsylvania McDonald’s, the company was thrust into the spotlight. Its response became a masterclass in corporate reputation management. Trump’s 20-minute appearance at a closed store prompted the fast-food giant to issue a statement to its 1.7M+ employees, affirming that the company does not endorse political candidates, saying: “We are not red or blue — we are golden.”

Speaking apolitically, this internal statement — which was also shared with the media — served as a strong response to a potentially vulnerable situation for McDonald’s reputation. In just nine words, the multibillion-dollar company demonstrated how strategic messaging can transcend political division while reinforcing core brand equity. This approach provides a framework for companies facing similar challenges in today’s polarized environment.

What’s more, companies today face increasing pressure from the media/social media complex to pick a side. Whether it’s a news outlet or an influencer, the message is often the same: “Our side is better for you,” or worse, “We won’t attack you if you align with us.” This is almost never the case. The reality is that taking sides often alienates large segments of stakeholders and erodes trust, making neutrality, authenticity, and value-driven messaging even more critical in these moments.

As we enter a second Trump presidency and a new era in Washington, companies across sectors may be faced with challenges sparked by political debates — debates that could negatively impact their brands.

WHAT IT MEANS:

Even when they try to avoid them, companies can find themselves at the center of politically divisive moments. The recently shifting landscape of Corporate DEI programs, which we discussed in a September issue of this newsletter, is an example of this. While the advocacy efforts and public criticism from influencer Robby Starbuck didn’t fully represent the corporate world’s DEI problem, he was able to throw gasoline on it.

In this highly politicized environment, companies must remain vigilant and ready to act. The upcoming Trump presidency is likely to present surprise moments, like the one McDonald’s experienced on the campaign trail. While these moments can serve as moments of corporate and brand risk, when handled correctly, they can also be opportunities for brands to prove who they really are and walk away with a reputational win.

There’s no one-size-fits-all solution for these situations. A few years ago, corporate purpose projects were all the rage, but the good ones are the ones that make deciding what to do in these moments pretty easy. For example, some companies take a firm stance that if an issue doesn’t directly relate to their business, they won’t get involved or respond. Yet, these same companies often share purpose statements about “changing humanity” or solving global challenges, which creates misalignment and confusion. Purpose, when authentic and actionable, should guide companies in these moments, ensuring their response aligns with what they stand for and how they operate.

WHAT TO DO ABOUT IT:

McDonald’s response was effective because it reinforced that its brand’s true value lies in the authentic connections it builds with customers across the country and world. The company used the moment to point to its corporate mission to make “delicious, feel-good moments easy for everyone.”

To navigate other unexpected politically sparked moments, corporate leaders should:

Keep their eyes open for unexpected opportunities and map out potential issues in advance. The speed of social media means brands need to actively monitor what’s happening in real time while also preparing for a host of predictable issues that may arise. Develop internal guidelines and proactively map out scenarios most likely to impact your business. For each, have response plans and key messages ready to go, ensuring your communications team can move quickly and confidently when needed.
Make sure the plan isn’t just about mitigating a problem but amplifying a win. When crafting a response to a politically charged or reputationally vulnerable moment, the goal shouldn’t just be damage control. It should be about seizing an opportunity to reinforce and elevate your brand’s core strengths. Mitigation ensures you neutralize immediate risks, but amplification can create lasting positive impressions with consumers.
Know your company values and share them widely to be in the best position to succeed. The most effective defense against political polarization is to consistently and authentically deliver on your fundamental promise to customers. When controversy strikes, redirect attention to what makes your brand unique, and what you do best.

Being prepared may be the most powerful stance a brand can take as they navigate the challenges ahead in the next few years.

If your company is determining the best way to navigate reputational challenges like the one McDonald’s faced, we are here to help. Don’t hesitate to reach out to see how we can support you.

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