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NEW POST ON SUBSTACK:
The Cost of Crony Capitalism & Transactional Leadership in 2025
The Cost of Crony Capitalism & Transactional Leadership in 2025
The Cost of Crony Capitalism & Transactional Leadership in 2025
Part I — The Cost to the Bottom Line
“Over time, I have come to this simple definition of leadership: Leadership is getting results in a way that inspires trust.” — Stephen M. R. Covey
2025 may go down as the year we finally quantified the real cost of transactional leadership and crony capitalism.
Eight months into the second Trump Administration, the numbers are already starting to tell their own story.
Some companies chased short-term political wins, now they are suffering boycotts, reputational damage, and billions in lost value.
Others, who held firm to inclusion and authentic values, are showing stronger loyalty, higher profits, and long-term resilience.
Case Studies — The Value Lost
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Tesla: Loyalty collapsed from 73% to under 50% in nine months, with sales falling sharply in the U.S., Europe, and Australia.
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Target: Abandoned DEI (Diversity, Equity and Inclusion), then faced 11 weeks of traffic declines, boycotts, and a US$313M quarterly operating income hit.
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Canada fights back: Ontario’s LCBO pulled C$965M of U.S. alcohol off shelves,
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Jack Daniel’s sales fell 59% in Canada, and tourism bookings to the U.S. dropped 70–76%.
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Amazon & Etsy: Landed on boycott lists and faced reputational fallout for quietly rolling back DEI or failing to live up to expected community values.
The evidence is mounting: short-term deals and transactional concessions may appease a momentary pressure, but they corrode the trust that drives long-term viability.
Part II — The ROI of Values-Led Leadership
It’s not all doom and gloom. Alongside the corporate cautionary tales, there are examples of values-led leadership that prove the ROI of authenticity.
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Costco: Defended DEI publicly and reported a US$222M quarterly profit increase (+13% YoY).
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Apple: Shareholders voted 97% to retain DEI, with management emphasising inclusion as core to strategy.
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Ben & Jerry’s: Ben & Jerry’s co-founder Ben Cohen said corporate America’s retreat from efforts to boost diversity and inclusion amounted to “appeasement” that “just encourages bullies”
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Ethisphere: Found that “World’s Most Ethical Companies” outperformed peers by 7.8% over five years.
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Gallup research: High engagement delivers 23% higher profitability and 18% higher productivity.
The lesson is clear: authentic leadership is not “soft.” It is strategic, values-driven, and consistently rewarded by markets, customers, and employees.
Where to Read, Listen & Join the Conversation
Read the full long-form article on Substack (available in written & audio format): 👉 HERE
Listen to the audio version on YouTube: 👉 HERE
Check out the Byte version on LinkedIn (short & snappy overview): 👉 HERE
Why This Matters
For businesses, communities, and policy leaders, the choice is stark. Transactional shortcuts may look successful today but destroy value tomorrow. Values-led leadership builds resilience, innovation, and trust that lasts.
This isn’t just an abstract debate. For small businesses, regional economies, and purpose-driven organisations, leadership choices are already reshaping whether systems thrive or fracture.
Join the Conversation
What’s your perspective?
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Where are you already seeing values-led leadership pay off?
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Where do you notice the cracks in transactional leadership models in your sector?
This is a conversation needed across industries, communities, and governments.
#AuthenticallyAgency #Leadership #AuthenticLeadership #PositivePsychology #SustainableLeadership