The art of the corporate U-turn

Last year, oil giant BP announced a “back to the future” reset in a filing to the London Stock Exchange.

The company revealed plans to increase investment in its oil and gas operations by $10 billion a year while cutting about $5 billion from renewable energy projects such as wind farms. It marked a significant turnaround for a group that had pledged to lead with a green-first agenda, promising to reduce oil and gas production by 40 per cent by 2030 in response to climate change.

The shift followed intense pressure from activist investor Elliott Management. BP said the change was designed to improve company performance and boost shareholder value. The announcement was shared across BP’s social channels, with chief executive Murray Auchincloss commenting on LinkedIn and a short video interview published on the company’s website.

“If you don’t tell your own story, someone else will”

Despite some negative reaction from more passive investors, BP did not offer a vote on the reset at its Annual General Meeting in April. Unsurprisingly, there was an investor revolt over the re-election of chair Helge Lund, with some shareholders bemoaning the lack of external consultation on the strategy pivot. BP’s share price has fallen nearly 8 per cent over the past three months and, according to reports, the company is now a potential takeover target for rivals such as Shell.

Last year, US retail chain Target followed other blue-chip firms including Walmart and Citigroup in scaling back commitments to Diversity, Equity and Inclusion (DEI). The decision came amid pressure from the new Trump administration, which has criticised DEI initiatives as “illegal and immoral.”

Target’s chief community impact and equity officer, Kiera Fernandez, informed employees that the company would end its DEI goals and a programme aimed at increasing products sourced from Black- or minority-owned businesses. The company also published a fact sheet on its website reaffirming its commitment to local communities, while softening its corporate language — for example, changing “Evolving our Supplier Diversity” to “Supplier Engagement.”

In May, the retailer reported a first-quarter sales slump, partly attributing it to a consumer “boycott” over its DEI policies.

These strategic pivots are still in their early stages, and there is time for both companies to recover. But they raise an important question: could a more effective communications strategy, aimed at employees, investors and customers alike, have eased the transition?

Communicate reached out to BP, Target and Citigroup for comment, but all either declined or could not be reached. Scott Payton, chief executive of corporate communications consultancy Bowen Craggs, said he and his teams spent much of the first quarter advising clients on precisely this issue.

“If you’re making a major U-turn, get the CEO to explain clearly and concisely why the change is happening, the benefits it brings, and do it with humanity”

“A big challenge today is the polarisation of cultural and political views,” he said. “Half of your employees and stakeholders want you to speak robustly on ESG or DEI, while the other half want you to stop or to do it differently. You can’t please everyone all of the time.”

What ‘sensible’ companies should never do, however, is retreat into silence or ignore political and moral pressure — whether from politicians, employees or investors.

“Putting your fingers in your ears won’t work,” Payton said. “If you don’t tell your own story, someone else will. When the board decides to shift strategy, the corporate website becomes critical. It is the mothership of truth and the definitive source of information on a company’s position. People will keep asking questions, and it’s vital to address them openly and consistently online.”

In the age of AI and misinformation, he added, communications teams must be proactive in shaping their digital footprint. “Don’t let Greenpeace or another organisation speak for your business. Ensure that your stance — and your content — dominates search results.”

Payton advises communications teams to encourage CEOs to humanise the new strategy through direct, unscripted messages. “If you’re making a major U-turn, get the CEO to explain clearly and concisely why the change is happening, the benefits it brings, and do it with humanity,” he said. “Abandon the autocue.”

Without this level of authenticity, employees and customers may assume the strategy has been forced through to appease certain politicians or investors. Conversely, if the motivation is profit, sales or shareholder value, honesty remains the best approach.

“Above all, give people a role in shaping the future. The best strategy isn’t simply explained; it’s co-created”

Chris Clarke, co-founder of strategic communications agency Fire on the Hill, agrees that transparency is key.

“If the change is right for your brand — whether that’s shifting investment priorities, exiting an area or winding down a commitment — you owe it to your key stakeholders, internal and external, to be upfront about why,” he said. “People may disagree with your direction but still respect your integrity. Hide the ‘why’, and you risk damaging trust. That means being honest about the full impact of the change — not just the upsides, but the downsides too. What will it mean for employees, customers, partners? And just as importantly, how are you mitigating the negatives?”

He added that all stakeholders value honesty and clarity. “Setting clear timelines, being transparent about the impact and engaging people in the process are non-negotiables. Map out the path ahead, define when disruption will occur and when progress will follow. Above all, give people a role in shaping the future. The best strategy isn’t simply explained; it’s co-created.”

Payton also argues that companies can continue to communicate commitments to ESG and inclusion — but in plainer, less polarising language.

“So many terms have become politically weaponised,” he said. “Continue to speak about these issues — because remember, around 50 per cent of your stakeholders believe they should remain a focus — but avoid acronyms like ESG or DEI. Talk about inclusion without jargon. It’s about showing, not preaching. Show your diversity of culture and ethnicity in employee profiles on your website or Instagram. Share human-led sustainability stories on YouTube. These gestures send a positive message without inflaming political debate.”

Communication teams, he added, must also ensure that internal and external messaging align. “There’s a huge temptation to reassure employees that DEI is still taken seriously while presenting it differently to investors. You’ll be found out, and it will backfire. Clarity and consistency are crucial.”

Both Payton and Clarke agree that the foundation of any successful strategy shift lies in maintaining trust through openness, clarity and humanity. In an era where every corporate statement is scrutinised, silence is not an option — and neither is spin.

Handled well, a pivot can reaffirm purpose and strengthen connection. Handled poorly, it risks alienating employees, investors and consumers alike.

When strategy changes course, the message should do more than defend the decision. It should demonstrate conviction, empathy and, above all, integrity.