Hey, can you ask Google: How important is DEI for your business?

Google’s latest move is a gamble. Along with some of the world’s other largest businesses, the tech giant’s parent company, Alphabet, has quietly dropped its commitment to diversity, equity, and inclusion (DEI). It might’ve done it on the down-low, but its message is loud and clear: political gain trumps its core values.

The rationale is obvious, Alphabet is navigating the current political climate in the US. But today’s consumers are no longer passive observers. Customers endorse brands that embody their values, and they vote with their wallets. Alphabet, and by extension Google, has been such an impenetrable leader for so long, it looked like it could never be toppled, but a move like this could push the public towards alternatives that do align with their values, like Firefox - which recently reminded the world that it’s the only web browser not backed by a billionaire.

But it’s Alphabet’s employees who are hit hardest by this decision. With many of its workforce now feeling undervalued and abandoned, will the world’s brightest minds want to stay with a business that’s making decisions like this? Internal buy-in isn’t a nice-to-have for innovative businesses, it’s essential; people are what ultimately drive that innovation.

But don’t take our word for it, the numbers speak for themselves.

Alphabet share price dropped 9.9% just three days after news broke that Alphabet was rolling back its DEI commitments. Alphabet invested $8.7 billion (USD) in advertising and promotional activities in the last reported fiscal year (2023-2024) - and yet, this dei rollback has made a more impactful statement about what it stands for than any of that work and investment. Alphabet's undermined its relationship with the public: a 2021 report by Deloitte found 57% of consumers are more loyal to brands that commit to addressing social inequities in their actions. The decision could also harm Alphabet’s internal buy-in and output. EY reports that a sense of workplace belonging can increase people’s job performance by up to 56%. Will future talent want to work for Alphabet? 63% of workers currently prioritise diversity, equity and inclusiveness (DEI) in choosing a company over one that does not, according to a survey by EY. Plus, it’s of even greater importance to Gen Z and millennial talent.