What brands could lose by backing down from DEI programs, according to an expert

A number of retailers and brands have eliminated diversity, equity, and inclusion (DEI) programs this year. These changes may not present a PR issue for many brands, said Dr. Marcus Collins, clinical assistant professor of marketing at the University of Michigan’s Ross School of Business. Many consumers may quickly forget these brands ended DEI programs, or they may not care at all. But brands could be setting themselves up for backlash or long-term challenges.

Ford, Harley-Davidson, John Deere, Lowe’s, Molson Coors, Target, Tractor Supply Co. have all recently eliminated DEI initiatives. Discourse surrounding racism has waned for many consumers since the 2020 protests following the murder of George Floyd, Collins said. Without pressure from consumers to maintain these initiatives, retailers can quietly (or loudly) dissolve their DEI programs.

The trend away from DEI is exacerbated by a Supreme Court ruling against affirmative action and watchdog groups threatening litigation against companies with DEI programs. A contentious election season is making many brands even more cautious about taking firm social stances. “It's easier to join a thing when everybody's on board than it is when there's division,” Collins said.

Eliminating these programs could harm brands long term.

• Three in four consumers will pay more for brands that share their values, per iHeartMedia and Pushkin Industries. DEI initiatives could be a deciding factor for some consumers.
• Eliminating DEI programs also creates opportunities for similar companies to court consumers who are looking for brands that support DEI, Collins warned. Brands that market themselves as diversity-forward could take from consumer bases of brands that don’t market themselves as diversity-forward.
• As demographics in the US shift, brands that have historically prioritized advertising to white consumers may find themselves falling behind competitors with more diverse campaigns.

Prioritizing political ideology allows brands to connect with consumers in more meaningful ways than ones who focus entirely on monetary value propositions, Collins argued.

For example, e.l.f. Beauty has benefited from taking loud stances against sexism in the workplace with its So Many Dicks campaign. “They don't have to do that. It's not even part of their category, but that's what they believe,” Collins said. The campaign represents e.l.f. Beauty as a brand, encouraging people to identify with its values to proudly use its products.

Ben & Jerrys is another brand that has had success with taking firm ideological stances. The brand called for the dismantling of white supremacy in 2020, making its social positions clear and building an identity around what it means to be a Ben & Jerry’s consumer.

Brands eliminating DEI initiatives are making an ideological decision that make attract consumers who disagree with DEI efforts. Still, reversing programs to appeal to these consumers is a risky decision, considering 77% of respondents to a survey from the Association of National Advertisers' Alliance for Inclusive and Multicultural Marketing (ANA AIMM) are willing to abandon brands that reverse their support for diversity.

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