This post was led and co-authored by Justine Herve and Hyewon Oh.
Recent months have been marked by rising economic and political uncertainty. During this period, many firms that once took public stances on social issues have fallen silent on initiatives such as innovation, Corporate Social Responsibility(CSR), and Diversity, Equity, and Inclusion (DEI). Internally, organizations have also trimmed discretionary investments in employees—cutting wellness programs, benefits, and professional development while maintaining only essential operations. These retreats are rarely announced. Instead, companies scale back quietly, limiting efforts to what is required to remain compliant, profitable, or competitive in the short term. We refer to this emerging phenomenon as companies “quiet quitting.”
Why Company Quiet Quitting Happens
One important reason why employees quiet quit is that they fear their contributions may not pay off, or worse, might backfire, particularly in uncertain contexts such as the COVID-19 pandemic. Organizations can experience a similar reaction: Amid recent political, economic, and social turbulence, many companies face a loss of control over the link between discretionary efforts and intended desirable outcomes. As such, they perceive non-essential initiatives as more likely to be punished than rewarded, and in turn are responding much like individuals do when they feel expendable: They stop going the extra mile as they can no longer see where the road leads.
How Company Quiet Quitting Matters
The effects of organizations quietly quitting might ripple far beyond a single fiscal quarter. Internally, employees might sense the retreat. The relationship with the company that once invested in learning opportunities, diversity efforts, or workplace culture may start to feel transactional. This shift can dampen morale and send a message that discretionary effort is no longer reciprocated or valued, prompting employees to quiet quit, or even turn in their actual resignations.
Company quiet quitting can also erode brand trust and stakeholder goodwill. Companies may face reputational erosion and sales drops as consumers perceive inconsistency or inauthenticity and stop buying from the brand. For instance, after recently rolling back its DEI initiatives despite having been a central voice about Black rights in the corporate world following 2020, Target may now risk losing the support of minority customers. This can result in losses in competitiveness, especially compared to peers that remain visibly committed to their goals.
What Leaders Can Do
1. Take a clear-eyed look inward. Much like an animal reacting out of instinct or fear, organizations may begin to retract from their core priorities when the future feels uncertain. This reaction can occur unconsciously, as a reflex to preserve resources in turbulent times. Leaders need to actively audit their organizations’ priorities, behaviors, and investments to identify: Where have discretionary efforts slowed or disappeared? Are decisions made from fear, or with purpose?
Example: In the early days of the COVID-19 pandemic, many companies froze hiring and deferred expansion plans. In contrast, Ben Minicucci, CEO of Alaska Airlines, took a bold approach: Instead of retreating, the airline ordered more aircraft and hired thousands of workers in 2021 and 2022. By early 2023, the payoff was evident: Alaska was positioned to meet surging post-pandemic demand while competitors scrambled to catch up. This reflects what resilience truly means: not merely rebounding from adversity, but using it as an opportunity for strategic renewal.
2. Shift from short-term survival to long-term vision. To avoid short-term responses to uncertainty costing companies their future advantage, leaders need to intentionally revisit long-term goals. The key is to preserve strategic initiatives that reinforce the company’s identity and core commitments, especially when these commitments require long-term investment. Instead of asking, “What’s safe right now?” leaders should ask, “What are we building toward? What will these choices look like in five or ten years?” Organizational energy should align with enduring purpose, not temporary calm.
Example: Companies like Unilever have remained consistent in their long-term sustainability and purpose-driven branding strategies, even when financial markets or political climates shifted. Such consistency has helped the brand remain credible and differentiated in the eyes of stakeholders.
3. Stay close to stakeholders, not just headlines. While political and social climates may exert pressure, leaders can tune into the voices of those who matter most: employees, customers, and long-term investors. Rather than asking, “What are the latest headlines telling us to react to?” leaders can ask, “What truly matters most to the people we serve?” Conducting research or gathering regular feedback can help organizations stay anchored in stakeholder needs and avoid over-correcting based on transient noise.
Example: Patagonia routinely reinforces its commitment to environmental action, not just because that is part of its brand identity, but because its customer base deeply values this stance. By staying close to its core audience and their evolving expectations, Patagonia resists the drift toward disengagement, even when political backlash against sustainability narratives rises.
4. Reframe uncertainty as opportunity. Uncertainty does not have to lead to paralysis. Reframing can unlock action. Instead of interpreting uncertainty as a cue to withdraw, leaders can reframe it as an opportunity for experimentation and adaptation. Instead of asking, “What should we stop doing until things are stable again?” leaders can ask, “How can we adapt and stay true to our purpose despite the uncertainty?” This psychological reframing helps maintain momentum and keeps the organization focused on proactive contribution instead of protective retreat.
Example: In the wake of the 2011 Tōhoku earthquake, Toyota abandoned its lean just-in-time model characterized by a no-inventory policy, in favor of a just-in-case strategy in which the company started building inventory buffers to better adapt to supply shocks. Such a change, grounded in strategic reframing, proved critical during COVID-era semiconductor shortages, which ultimately turning uncertainty into resilience.
Leveraging Uncertainty to Reinforce Purpose
Periods of uncertainty do not just test a company’s strategy. They reveal its mindset. When leaders mistake turbulence for a signal to retreat, they risk disconnecting from employees, abandoning long-term commitments, and eroding stakeholder trust. Yet, company quiet quitting is not inevitable. In fields such as social responsibility and innovation, countercyclical investments—bold investments made while others retreat—signal deeper conviction. They demonstrate that commitment does not vanish when the headlines shift.