ARE WE REALLY ABANDONING DEI?
A long-term view on brand loyalty.
A troubling trend has developed in recent months as brands such as John Deere, Molson Coors, Harley-Davidson, and others have backed away from their diversity, equity, and inclusion initiatives. These companies, under pressure from people who are politically motivated, are making decisions that give them short-term relief from criticisms but could carry significant long-term consequences. These actions also raise a question. Were these DEI initiatives ever truly genuine, or were they merely corporate lip service? The rationale behind DEI has been questioned before, but I genuinely believe it’s the right thing to do if done in the right way with a true sense of purpose. The latest controversies might simply be providing companies with a convenient excuse to walk away from their commitments. Are we seeing an “easy out” for organizations that perhaps never fully embraced the true principles of DEI?
Why DEI Matters Now More Than Ever
Today’s consumers, particularly the younger generations, are acutely aware of social and environmental issues. Gen Z and millennials demand that the companies they support align with their personal values. As one example of that, consider that studies show that 82% of Gen Z consumers say they are more likely to buy from brands that show their support for social equality. Brands make a mistake if they think this is just a trend that will soon pass. It’s a shift in how consumers view their dealings with brands. When companies like John Deere and Harley-Davidson allow themselves to be pressured into abandoning their DEI efforts, they risk souring any potential relationship they might have with these younger consumers. Brand leaders can’t afford to be neutral on issues related to diversity and inclusion. If they try to do so, they eventually will pay.
Any Advantages Are Short Term
Somehow, when companies decide to back away from DEI, it’s viewed, wrongly, as a wise financial decision. But any business advantages that a company does enjoy from the decision are destined to be short term. Yes, certain groups will applaud the companies that set aside their DEI efforts, but that applause comes with a cost. These brands are sending a signal that they are willing to sacrifice long-term loyalty, employee engagement, and innovation. All three of those are necessary for a company to achieve sustainable growth. DEI initiatives are not just an optional “nice-to-have.” They are a necessity for any business that wants to foster an inclusive working environment that drives creativity and innovation. Diverse teams are proven to perform better, solve problems more efficiently, and provide diverse perspectives that are critical in today’s competitive landscape. Without a DEI focus, companies not only risk reputational damage but also miss out on opportunities to recruit and retain top talent. But with all the opposition out there to DEI, brands will need to show courage to be able to resist giving in to the pressure put on them by vocal groups. If they don’t, they are going to undermine any trust they have from customers and employees. The most successful brands are those that stay true to their values, regardless of external pressures. John Deere and Brown-Forman, for example, made the decision to drop their DEI initiatives, a move that could eventually result in long-term losses in customer trust and brand loyalty.
Salvaging the Future
As other brands feel the same pressures, they will need to do some reflection. Can they stand up to the short-term criticism they face? Or will they wilt and jeopardize the company’s future in exchange for immediate but temporary comfort? Abandoning DEI initiatives may mollify some critics in the short term, but in the long term, it risks eroding trust with broader, more diverse audiences. Brands that back down send a message: They are not committed to the values they claim to hold.
Standing for Long-Term Success
Instead of abandoning DEI, brands need to stand firm on their commitments —perhaps more now than ever. Consumers are letting it be known that they prefer to do business with brands that reflect their values and show that they are inclusive. Employees also want that and are more likely to remain loyal to businesses that reflect DEI values. The businesses that can stand up to the current anti-DEI trend will prove to be stronger in the long run—both on their balance sheets and in the eyes of the communities they serve. Don’t let these outside pressures dictate long-term strategy. Instead, let’s commit to building brands that are resilient, inclusive, and forward-thinking. Those qualities will define success for decades to come.
