One of the outcomes of the Black Lives Matter movement that began in 2020 was corporate America’s reinvestment in diversity, equity and inclusion (DEI) programs and initiatives. Ironically, four years later, a small minority of people have conflated DEI with something “bad” that seeks to exclude them. This January, billionaire Bill Ackman published a lengthy criticism of DEI which was amplified by billionaire Elon Musk. These loud attacks on DEI have some companies pulling back their DEI efforts at their own cost.
While the abbreviation DEI is in wide use, it’s useful to revisit what it stands for.
- Diversity refers to the differences between people within any group or organization. This includes but is not limited to race, ethnicity, nationality, religion, gender identity, sexual orientation, language, age, disability, socio-economic status, and social background.
- Equity refers to fairness and justice in access to opportunities and distribution of resources. This means that everyone has the individual support they need to be successful.
- Inclusion goes beyond representation and refers to ongoing efforts to ensure everyone feels welcomed and included.
These are simplified definitions. For more detailed definitions and explanations, click here.
Reality Check
Historically speaking, the population of the United States is only getting more diverse. According to a 2021 report, since 2016 there has been a decline in white populations and an increase in Black, multiracial, Hispanic and Asian populations. Currently, 40% of US adults are identified as non-white. DEI in your organization, brand, and marketing efforts reflects the current U.S. demographics.
Inclusive Marketing Drives Sales
The reasons to embrace DEI don’t stop there. A 2022 study by Amazon Ads and Environics found that:
- 44% of consumers deemed DEI more important than they had three years previously.
- 7 in 10 consumers say diversity, equity, and inclusion is an important factor when selecting a brand to purchase from.
- 45% of consumers are willing to pay more for products from brands that actively promote DEI.
- 69% of Black consumers say they are more likely to purchase from brands with advertising that positively reflects their race/ethnicity.
- 71% of LGBTQ consumers said they are more likely to interact with an online ad that authentically represents their sexual orientation.
Growth Strategies
$7.5 trillion. That’s the projected buying power of minority groups in 2026. Combine that with younger generations prioritizing DEI in their purchasing decisions and DEI becomes essential for an organization’s growth strategy. In a survey of 3,000 U.S. consumers, 64% said they took some type of action after seeing an ad that they consider to be diverse or inclusive.
Without a commitment to DEI throughout an organization, any DEI marketing efforts will fall flat and lack authenticity. Evaluating your organization’s current representation is step one. If you’d like a DEI audit of your organization’s existing marketing materials, email Troupe@aJuxt.com or visit us here.
Written by Cristin Burns | Amazon Specialist & Social Media Maven