Melting Morals? Why a DE&I Walkback is a Brand Strategy for Boneheads

Ben & Jerry's, the poster child for brand integrity

In the ever-turbulent seas of American politics, some brands have been acting like weather vanes in a hurricane—spinning wildly with every gust of change from the White House. But here's the deal: if your brand's commitment to Diversity, Equity, and Inclusion (DE&I) is as fickle as a cat's affection, you're setting yourself up for scratched shins.

DE&I or Die

DE&I initiatives were all the rage back in 2020 when a wave of racial justice protests in the wake of the murder of George Floyd made America a woke-or-broke landscape for businesses. Companies, many of which had been ghostly white for generations, were suddenly scrambling to employ more people of colour and show their support for the Black Lives Matter movement. According to McKinsey, US businesses spent USD 7.5 billion on DE&I-related endeavours in that year alone.

But believe it or not, such efforts weren’t entirely selfless (gasp!). While federal funding for DE&I initiatives was reserved for government agencies, federal contractors, educational institutions and organisations applying for specific grants, the Biden administration encouraged private businesses to adopt DE&I practices through incentives, public-private partnerships, and regulatory guidance. Companies with a lack of diversity were also getting named and shamed in the media. One way or another, it paid to be proactively inclusive.

The Great DE&I Backpedal

Even before Trump came back into power, however, woke America was looking dangerously sleepy as increasingly confident right-wing groups began boycotting American companies that were too vocal about their DE&I policies. By the time their fearless orange leader had reinstalled his Coke buzzer in the Oval Office, the tide had well and truly turned. DE&I is dead. Long live the MAGA Sorting Hat of social justice.

But guess what? No one likes brands treating their supposed moral compasses like a just-for-Christmas puppy. Take Walmart, for example. The largest private employer in the United States recently ditched many of its DE&I initiatives, including racial equity training programmes for staff and a scheme designed to increase supplier diversity. The result? A not-so-happy dance from liberal consumers and Walmart’s 42% non-white workforce.

Then there's JPMorgan Chase, which decided that "equity" just wasn’t something they stood for anymore when they rebranded their DE&I programmes as "Diversity, Opportunity & Inclusion." Nothing says integrity like a quick name change to appease the powers that be. We guess they really do stand by their tagline, “The right relationship is everything.”

And let’s not forget Target, which unwittingly gave us a masterclass in how to add fuel to the fire of a DE&I dampening. After publicly scaling back its diversity initiatives to avoid conservative backlash, the retailer then had the audacity to roll out its usual Black History Month promotions on social media. Consumers weren’t buying it (literally), and the backlash was swift. Comments on the brand’s BHM Instagram post included, “So you want to PROFIT off Black culture, but not invest in it. Got it,” and “I’ll take gaslighting for 500.”

The Case for Standing Firm

On the flip side, some brands have shown the backbone to stick with what they claim to believe in, at least for now. Disney's shareholders recently gave a resounding "nope" to an investor proposal for the company to withdraw from participating in the Human Rights Campaign's corporate equity index, which rates workplaces on LGBTQ+ equality. Clearly, Mickey Mouse isn't about to let politics dictate who he gets down with. Costco also stood its ground, rejecting shareholder calls to dismantle its DE&I efforts. The reward? A reputation as a company with principles, not just profits.

If you’re looking for something to aspire to, Ben & Jerry’s is the poster child of brand integrity. The ice cream giant has refused to melt into a sloppy mess as the heat has been turned up, despite pressure from its owner Unilever to scale back its activism activities. Not only is B&J’s keeping its DE&I initiatives, it’s cranking up the crusading, tackling everything from climate justice to racial equity, both on and offline.

Consumers who like to feel pure while eating ice cream love them for it. Despite the political pressure, their commitment to social causes has only strengthened their brand loyalty. According to Marketing Brew, their unapologetic activism continues to resonate with their audience, proving that you don’t need to be politically vanilla to succeed; sometimes, a little Resistance Ripple is the flavour people crave.

Authenticity is Not Just for Inauguration Day

In today's uncertain economy and all-round trust deficit climate, authenticity isn't just a nice-to-have—it's the currency of brand loyalty. Consumers and journalists alike are on high alert for cynical corporate U-turns and love to call out BS when they smell it.

If your brand's values change with every political current, don't be surprised when your customer base starts to erode like a sandcastle at high tide. Consistency breeds trust, and trust breeds loyalty. So, unless you want your brand's reputation to resemble a game of Jenga at a rocket launch, choose brand ethics you genuinely believe in and don’t let anyone persuade you to walk them back. Your customers, your staff and your bottom line will thank you.