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Consumers increasingly support companies that keep their DEI commitments
February 05 2025, 08:15

While numerous larger companies have recently caved to right-wing pressure to drop their diversity, equity and inclusion (DEI) efforts, new data shows that fewer consumers support companies that do so. In fact, the data also suggests companies that keep their DEI commitments may find a financial benefit in doing so.

A recent poll by the business research company Morning Consult found that between July and late November of 2024, support for companies that reduce their DEI influence dropped six points, support for companies ending DEI programs entirely dropped four points, and support for companies decreasing DEI funding dropped five points.

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“Market research about DEI paints a clear picture: Regardless of which political party wins in any given election, the American population is becoming more diverse and wants corporate America to reflect this diversity,” wrote Hunter Johnson, CEO of Xpedition, an entertainment and marketing agency that is a member of the National Gay & Lesbian Chamber of Commerce and has a 30% LGBTQ+ workforce.

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In a recent AdAge article, Johnson noted that data from the Unstereotype Alliance of advertising companies found that 75% of U.S. consumers said they feel it’s important to buy from brands that support diversity and inclusion. The alliance’s research also found that inclusive advertising leads to 15% higher customer loyalty, 16% higher longer-term sales and a 62% higher likelihood of being a consumer’s first choice.

“The election [of Trump] makes it easy to assume that America is becoming more conservative on the whole, and many companies feel compelled to follow suit,” Johnson wrote. “[But] market research about DEI paints a clear picture: Regardless of which political party wins in any given election, the American population is becoming more diverse and wants corporate America to reflect this diversity.”

Johnson noted that 94% of Gen Zers expect companies to take a stand on important social issues, according to Deloitte Insights. It’s also worth noting that 26% of Gen Z individuals identify as “something other than straight.” He also noted that while a majority of voters seemed to support Trump’s economic message (even as he campaigned against DEI), even red states passed progressive ballot measures, showing progressive attitudes despite Trump’s victory.

A bar graph showing declining support for companies that abandon their DEI efforts.
A bar graph showing declining support for companies that abandon their DEI efforts. | Morning Consult

“The idea that brands that ‘go woke, go broke’ should be easy to recognize as fiction,” Johnson wrote. “The truth is that inclusive campaigns boost sales and brand value…. [Consumers] can easily distinguish between a fair-weather advocate and a company that has made diversity and inclusion the bedrock of their business…. If you’re not championing diversity, you will lose customers and market share.”

Companies including Amazon, McDonalds, Walmart, Stanley Black & Decker, Molson CoorsJack Daniels, Ford Motor Company, John DeereLowe’s Hardware, Target and Harley-Davidson have all recently rolled back DEI initiatives in the face of online threats from right-wing activists like Robby Starbuck and groups like National Center for Public Policy Research organizing shareholder revolts.

However, companies like Apple, Cisco, Delta, e.l.f. Beauty, Goldman Sachs, JPMorgan Chase, Microsoft, Pinterest, and Salesforce have all quietly kept their own DEI initiatives, Forbes reported.

Recent studies have shown that the number of companies committed to LGBTQ+ inclusion is actually growing and a large number of advertising executives remain committed to LGBTQ+ representation.

According to recent data from the Human Rights Campaign, 80.1% of LGBTQ+ adults said that they would boycott a company that rolled back DEI measures, with 75.7% of LGBTQ+ adults having a less favorable view of such a company. Additionally, over half (52.5%) said they would try to get others to join the boycott, and similar numbers (51.7%) would remove any profile, credit card, or app they had with the company. Nearly 28% of respondents said they would join a protest or sign a petition against the company too.

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