Every December, I take a beat to sit with what the year actually taught us. And 2025 was a year that reminded us, over and over again, that business doesn’t move in a straight line. It moves with politics. It moves with people’s needs. It moves with consumer pressure.

For all the volatility this year brought, there were bright spots, signals that businesses, consumers, and leaders are beginning to rewrite what business looks like when it’s working as it should: in service of people, prosperity, and shared progress.

As we close out the year, here are a few of the shifts that stood out and what they might mean for 2026.

Values Aren’t a Trend. Values are the Marketplace.

If 2025 made anything clear, it’s this: consumers are no longer quietly disappointed when companies ignore their values — consumers are walking away.

Target learned this the hard way. After months of consumer backlash tied to misalignment between store policies and customer expectations, the retailer reported multiple consecutive quarters of falling sales. And by August 2025, as Forbes reported, CEO Brian Cornell announced he would step down. According to MarketWatch, Target is still seeing declining store traffic and shrinking consumer spending, signaling just how costly it can be when a company loses touch with its customers’ values and purchasing behaviors.

Consumers want to see themselves and their priorities reflected in the companies they support. When they don’t, they move their dollars elsewhere. That’s not culture war fatigue. That’s the market speaking.

Contrast this with what we saw from Instacart, DoorDash, and Gopuff earlier this year. When news broke about the constraints facing families relying on SNAP benefits, these companies didn’t retreat or wait out the headlines. They leaned in, launching targeted promotions and partnerships designed to directly support low-income households. They recognized a real-time shift in public concern, responded with relevance and urgency, and were rewarded with positive consumer sentiment.

The message from 2025 is simple: Companies that read the moment and respond with alignment win trust. Companies that don’t lose ground. Values aren’t a fad. Values drive the marketplace.

Following the Data: Businesses Are Recognizing That Doing Good Is A Core Business Function.

One of the biggest bright spots of 2025 is that we now have hard data proving what many of us have argued for years: companies that stay committed to equity, representation, and inclusion don’t just “feel good” — they perform better.

A study conducted jointly by Catalyst and NYU School of Law’s Meltzer Center for Diversity, Inclusion, and Belonging surveyed 2,500 employees, executives, and legal leaders across U.S. companies with active workplace inclusion programs. The findings were unambiguous: scaling back DEI efforts carries real operational and reputational risks.

According to the research, companies that pulled back on DEI experienced: higher employee turnover, erosion of trust and psychological safety, growing disconnects between executives and employees, and reduced innovation capacity, especially across cross-functional teams.

Catalyst warned that walking away from DEI now “creates long-term talent and legal risks,” and ultimately weakens a company’s competitive edge.

But while some companies retreated, others doubled down — and the difference was stark.

Across the market, several CEOs made clear public commitments that DEI is not negotiable. JPMorgan Chase CEO Jamie Dimon was explicit: “We are going to continue to reach out to the Black community, the Hispanic community, the LGBT community, the veterans community.”

He wasn’t alone. As we highlighted in a previous Ty’s Take, e.l.f. Beauty’s leadership continued to champion DEI as a driver of innovation, brand trust, and revenue growth — even as political pressure mounted.

And despite headline noise, investor sentiment affirmed the same direction. Research from Harvard Law School’s Corporate Governance Center found that shareholder support for DEI actually increased in 2025. Investors continued to back DEI-related proposals and reaffirmed DEI as a material factor in long-term performance and risk mitigation.

Even amid political pressure, many companies expanded supplier diversity programs, improved job quality standards, and deepened community partnerships. Not because of PR. Because of performance.

If 2025 was the year we began to see the outlines of a more accountable, values-driven free enterprise, then 2026 must be the year we scale it.

Looking Ahead: What 2026 Demands From All of Us

As we move into a new year, I’m thinking about continuity. About building on the bright spots rather than treating them as one-off wins. Because 2026 will test whether the progress we saw this year can stick.

Here’s what I hope we carry forward:

• Keep listening to the people closest to the challenges. They will continue shaping markets in ways companies can’t afford to ignore.
• Double down on practices that move impact from aspiration to operation. Procurement, compensation, data transparency…the basics matter.
• Treat values not as PR, but as a design principle. When values shape the decisions, the outcomes speak for themselves.
• Stay steady in the noise. The political cycle will get louder. The work must stay focused.

If 2025 taught us anything, it’s that meaningful change happens when people — in companies, in communities, in leadership — refuse to settle for symbolic action. We’re seeing what becomes possible when businesses choose to be part of the solution instead of part of the stagnation.

And the good news? There’s momentum to work with. We’re not starting from scratch.

Let’s Keep Building Together

If you find these reflections useful, sign up for the CapEQ newsletter to get tools and resources delivered straight to your inbox as we head into an important year. It’s where we’ll continue sharing practical guidance, data insights, and real-world examples of what good business can look like in 2026 and beyond.

Here’s to a year that challenges us, grounds us, and reminds us exactly what we’re capable of when purpose and performance move in the same direction.