Why Brands Should Still Embrace DEI

Image credit: Brooke Cagle via Unsplash

The election is over, and I am tired—tired of the polarization, tired of the noise, tired of politics being used to demonize and divide Americans. I’m also upset that our current political landscape encourages us to fear and mistrust our neighbors and that so many people stay silent instead of speaking up for change. But one thing I am not is powerless.

The election makes it easy to assume that America is becoming more conservative on the whole, and many companies feel compelled to follow suit. Walmart, the world’s largest private company by both revenue and employment, responded by rolling back its DEI initiatives.

As a progressive CEO, I found myself oscillating between rage and resignation. I started wondering, did I get America wrong this whole time? Should I just give up? Do we have to tamp down our inclusive marketing campaigns to appeal to a broader base? Do we need to run from DEl initiatives out of fear of offending people?

My gut said we shouldn’t change course, but my gut wasn’t enough; I needed data to back up what I was seeing. 

Here’s what I found: Americans are disillusioned with the political system, and when we feel hopeless we often fail to take action. After all, why bother to show up if we don’t feel like we can make a meaningful difference? This resulted in millions fewer people, including young voters, voting in 2024 than in 2020. The ones who did show up prioritized economic concerns over social issues, but this shouldn’t be misinterpreted as an endorsement of Trump's social policies. Many progressive ballot measures passed even in red states.

Despite a divided political landscape, Americans remain united on many core beliefs and are becoming more inclusive over time. The data support this. For example, the vast majority now support abortion (63%), same-sex marriage (69%) and action on climate change (70%). This is particularly true for Gen Z, which identifies as liberal at a higher rate than other generations (43%).

Brands that are rolling back their DEI initiatives in response to the election are misunderstanding the moment. Research shows that consumers today view diversity and inclusion as a necessity, not a nice-to-have. In fact, 75% of U.S. consumers say it is important for them to buy from brands that support diversity and inclusion. Unstereotype Alliance researchers found that inclusive advertising leads to 15% higher customer loyalty, 16% higher longer-term sales, and 62% higher likelihood of being a consumer’s first choice.

​Polling data is an unreliable metric for gauging voter values because it focuses only on the ultimate outcome, whereas marketing research focuses on the why behind consumer behaviors and includes non-voters, who make up more than a third of the population. 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. 

​This isn’t just about countering social narratives we know are untrue; it’s also about doing the right thing in business. Younger consumers in particular expect brands to champion inclusive values; 94% of Gen Zers expect companies to take a stand on important social issues. If you’re not championing diversity, you will lose customers and market share. Consumers don’t just vote at the ballot; they vote with their money. They can easily distinguish between a fair-weather advocate and a company that has made diversity and inclusion the bedrock of their business.

By now, the idea that brands that “go woke, go broke” should be easy to recognize as fiction. The truth is that inclusive campaigns boost sales and brand value. If you don’t authentically show up and champion America for what it truly is and what Americans really want, you will be leading your company in the wrong direction. This is not the time to give into fear and run to the right; it’s the time to act with courage and continue championing inclusive values.

Fear is powerful, and it can silence even the boldest voice in the room. But hope is stronger. Throughout history, moments of change and progress have always been met with resistance. However, the people who continued advocating for change and progress ultimately shaped the future. Businesses that stand firm on their commitment to diversity and inclusion reap the financial rewards. For example, Mattel faced backlash from critics who thought the “Barbie” movie was too “woke,” but the financial results speak for themselves: doll sales grew by 16% in the quarter after the film came out. Business leaders should feel empowered to double down on efforts to create a better America for everyone. 

I am hopeful that America will continue to become more inclusive over time, and that the work we do today can help us get there. Regardless of which way the political headwinds may blow, we can and must continue fighting for equality and a better world. We’ve shaped the future before. And we have the power to do it again.