By Tasha Mitchell, Marketing and PR Manager at Horowitz Research

Diversity, equity, and inclusion (DEI) programs aim to promote the fair treatment of all employees in the workplace, especially people from historically underrepresented communities. The introduction of DEI began when the U.S. implemented affirmative action, followed by the Civil Rights Act of 1964 outlawing employment discrimination based on race, color, religion, sex, and national origin. The goal of DEI policies is to foster a diverse workforce that challenges the status quo and defeats systemic barriers.

One example of an organization that has successfully integrated DEI is the Dallas Mavericks. When Cynt Marshall was appointed CEO of the Dallas Mavericks in 2018, she became the first Black woman CEO in the NBA. She also worked to reshape the organization’s culture to be more diverse and inclusive. During a virtual fireside chat at Horowitz’s Cultural Insights Forum last fall, Marshall noted: “Our values are character, respect, authenticity, fairness, teamwork, and safety, both physical and emotional. My leadership philosophy is 3 Ls: Listen to the people, learn from the people, and love the people. Let them walk in the door as their authentic selves and meet them where they are.” Marshall led the Mavericks to win the NBA’s Inclusion Leadership Award twice.

The recent executive order banning federal DEI programs has trickled down to major American companies. This comes on the heels of the Supreme Court’s landmark ruling to end affirmative action in college admissions. The elimination of such DEI programs has many diverse and multicultural Americans concerned about the impact on professional opportunities, workplace policies and culture, as well as about which brands they will support. As many companies celebrate Black History Month, it’s an important reminder for brands to reevaluate their commitment to diversity.

Black Consumer Attitudes Toward Companies’ DEI Values

The devastating George Floyd case and Black Lives Matter protests in 2020 resulted in more companies taking a stand against racial inequality and pledging to increase diversity initiatives. However, some of those same companies have since scaled back or eliminated their DEI programs after facing backlash from the public and shareholders. According to a recent Horowitz study, FOCUS Black Volume 3: Social, Cultural, and Political Shifts, a full third (35%) of Black American consumers surveyed agree that “there are companies that just check the box but are not really invested in diversity.” On the other hand, less than 1 in 4 (23%) Black consumers believe that “companies genuinely prioritize diversity and inclusion.”

A company’s sociopolitical stances can have a far greater impact beyond the workplace. DEI values and policies may play a critical role in whether Black consumers will support a business. According to the study, nearly half (49%) of Black consumers say it has a positive impact on their buying decisions when a company has internal diversity and equity initiatives to ensure that women; Black, Indigenous and People of Color (BIPOC); LGBTQIA+; and other groups have an equal opportunity for career advancement.

In addition, brands that spend a substantial portion of their advertising dollars supporting Black media and that publicly support Black Lives Matter find favor with nearly 6 in 10 Black consumers (55% and 58%, respectively). But when a company eliminates their DEI departments and executives, nearly 4 in 10 (38%) Black consumers say it has a negative impact on their decision to support a business.

The Future for Diversity, Equity, and Inclusion in the U.S.

With the recent rollbacks of DEI programs, maintaining a workforce that supports all employees is more critical than ever. Companies must make the continued effort to understand and become better allies for the diverse and multicultural communities they serve. Brands, marketers, and advertisers also have an important role in ensuring fair representation of people from all cultural backgrounds. As DEI continues to evolve, preserving the original intent and purpose of diversity initiatives must remain at the forefront.

Tasha Mitchell is a Marketing and PR Manager at Horowitz Research. She is passionate about connecting brands with diverse and multicultural audiences.

For more information about the FOCUS Black Volume 3: Social, Cultural, and Political Shifts 2024 report, visit: https://www.horowitzresearch.com/syndicated-research/focus-black/.