Generally speaking, people want to do the right thing. For many brands, that’s enough to adopt DEI policies and pursue certifications like B Corp that hold them accountable in their mission to do right by their employees, their clients and the planet. That’s certainly why we became B-Corp certified (you can read all about our journey here).

There are wider economic implications of that desire to do good. People want to feel positive about the decisions they make on a daily basis, and that includes the products and services they use: consumers have a moral compass - and it influences their spending patterns.

Major brands are rolling back DEI and, understandably, consumers are upset.
Pressure from the American right has global businesses including Amazon, Meta, Microsoft and Google cutting DEI programmes - and going against their own strategic positioning to do it. If we look at what’s going on in the US market with a brand lens, it’s clear the upset isn’t only coming from a general sense of right and wrong (make no mistake, companies backtracking their DEI initiatives are unequivocally in the wrong), but a violation of trust.

Let’s start with strategy, a powerful tool for connection.
Strategy is the codification of everything a brand stands for, as well as a framework for living up to that meaning. Both business and brand are extensions of it - or they should be, if everything’s working properly. The best strategies are simple, powerful and easy to get, striking an emotional chord with every team and resonating with consumers too. Because even though most strategies aren’t consumer facing, their effects almost always are.

Use it or lose it.
People form emotional connections to brands and they patronise the ones that reflect their values. When brands speak and act in a way that reflects the values at the heart of their strategy, they build authenticity, strengthening their relationships with consumers.

But when brands speak and act in ways that contradict the values at the heart of their strategy, they create dissonance that erodes consumer trust. And people are more than happy to jump ship; Google-commissioned Harris Poll research found 39% of American consumers would permanently abandon their favourite brands following perceived value misalignment, with an additional 24% saying they’d break ties temporarily.

Brands are breaking their promises.
Amazon, Google, Microsoft and Meta are established household brands built into the fabric of most people’s lives - there’s a good chance you’re using one or more of their products to read this article right now. We’re familiar with them, we depend on them, and we expect them to behave in accordance with the promises they’ve made.

Let’s look at their mission statements:

• Amazon: “To be Earth's most customer-centric company, Earth's best employer, and Earth's safest place to work.”
• Google: “To organize the world's information and make it universally accessible and useful.”
• Microsoft: “To empower every person and every organization on the planet to achieve more.”
• Meta: “To give people the power to build community and bring the world closer together.”

Defaulting on DEI is a shocking thing for brands that preach customer-centric mindsets, employee safety, accessibility, connection and empowerment, to do. In the cases of Amazon, Google, Microsoft and Meta, it goes against their mission statements, creating dissonance between their strategies and their actions, and fracturing consumer trust as a result.

Consumers aren’t happy about it.
Following Alphabet’s (Google’s parent company) announcement of their DEI rollbacks, their share price dropped 9.9%. Global protests like the economic blackout on February 28th are also a result of the trend against DEI, but the real impact of consumer upset on market leaders remains to be seen.

That doesn’t mean there aren’t some pretty obvious clues though. Target, an American retailer, is a fantastic example of what happens when consumers vote with their wallets. The department store chain were among the first US businesses to announce the removal of their DEI policies and they’ve been the focus of consumer backlash ever since, with footfall dropping 9% and share prices falling 8.7%.

Here’s some good news: not everyone is following suit.
Many brands are doubling down on their commitment to diversity, equity and inclusion in the face of NCPPR’s anti-DEI proposals. Apple investors shot down a shareholder proposal asking for the removal of DEI initiatives, departments and goals, with a whopping 97% voting against the repeal.

Ben & Jerry’s have also held fast to their values. The beloved ice cream brand issued a statement saying they “believe that companies that timidly bow to the current political climate by attempting to turn back the clock will become increasingly uncompetitive in the marketplace and will ultimately be judged as having been on the wrong side of history.”

LUSH have taken the opportunity to remind the world that they’ve always believed in “fairness, justice and equality for all, regardless of gender, race, age, sexuality, and religion,” by releasing three new bath bombs: Diversity, Equity and Inclusion. In case there was any doubt, the cosmetics company are “not going to roll back on anything”.

What does this mean for the rest of the world?
What happens in America affects us all - especially when the brands in question are global heavy hitters. Research suggests that consumers in other markets would have an even more powerful response to brands failing to uphold their values.

In fact, American consumers are among the least concerned with social responsibility, with only 51% expecting businesses to speak out on major issues. Compare that with 67% of consumers in Great Britain, and the much, much higher 84-87% of consumers in emerging markets, and it’s clear that brands around the world should heed what’s happening in America as a warning.

Now more than ever, it’s imperative that brands figure out what they stand for and draw their lines in the moral sand - because the decisions they make in the next four years will define them in people’s minds for much longer.