Commentary

The Evolution Of DE&I: How Inclusive Marketing Drives Business Growth

by Elliot Lum , December 23, 2024

Some companies have recently retreated from diversity, equity, and inclusion initiatives. However, DE&I and inclusive marketing is not a box to check or a trend to abandon, but an evolving business imperative that drives growth and innovation. It is a pillar of modern marketing. Those who ignore it are betting against their future.

Inclusive marketing requires collaboration across departments, and stakeholders to be successful. When done well, it unlocks new opportunities for business growth. Following are four lessons that demonstrate how inclusive marketing drives business success:

Leverage Marketing Expertise for Talent Acquisition and Retention

Inclusive marketing extends beyond customer outreach. It plays a vital role in attracting and retaining diverse talent, an area often solely left to HR. Marketing expertise -- rooted in persuasion, messaging, and storytelling -- has the power to support HR in crafting campaigns that resonate with underrepresented talent pools.

Diverse and inclusive teams are proven to lead to more creative ideas, richer insights, and ultimately better business results. Yet, without alignment between marketing and HR, companies risk overlooking the potential of this internal collaboration.

Appreciate the Balance of Efficiency and Engagement

In the pursuit of cost-cutting in media buying, many diverse-owned media suppliers struggle to secure meetings with brands despite their deep connections with diverse audiences. It's a shortsighted approach; these media suppliers have influence that’s distinctly untapped by mainstream channels and can deliver proven ROI and pathways to new growth with their audiences.

Marketers need to take the time to meet these diverse media suppliers who hold incredible influence over a captive audience. Balancing engagement and efficiency in media spend will help brands tap into underserved audiences that can drive higher conversions and loyalty.

Build Connective Tissue Throughout the Creative Supply Chain

Developing inclusive marketing requires coordination throughout the creative supply chain -- long before an ad is even shot. True inclusivity needs to be embedded in every stage of the creative development process. Ensuring these stakeholders are aligned on an inclusive vision will result in stronger, more cohesive campaigns that resonate and unlock growth across all audiences.

Harness Inclusive Insights To Drive Impact Across All Audiences

Multicultural marketing teams possess invaluable insights into diverse customer segments that are crucial for driving business growth. These teams are often at the forefront of understanding underrepresented consumers, and their insights can resonate with all consumers.

Creating a truly equitable and inclusive marketing ecosystem is still a work in progress. However, the wealth of activity that is happening proves that inclusive marketing is not a fad or a political talking point -- it is a fundamental business capability that drives growth, sparks creativity, and creates lasting consumer connections. Inclusive marketing is no longer a nice-to-have. It’s table stakes for growth in today’s marketplace.

As the ANA releases its book of award-winning case studies, we invite the industry to draw inspiration from these examples of inclusive marketing excellence. DE&I is not ending. Instead, it is evolving into its next, more impactful phase where this work is being done collectively and holistically. The brands that recognize this paradigm shift in bringing all stakeholders together will be best positioned to thrive in the future.

7 comments about "The Evolution Of DE&I: How Inclusive Marketing Drives Business Growth".

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John Caldwell from JACaldwell Inc, December 24, 2024 at 3:12 p.m.
The assertion that diversity, equity, and inclusion (DEI) initiatives and inclusive marketing are essential "table stakes" for business growth overlooks fundamental market realities. The rejection of DEI efforts by many companies is not a knee-jerk reaction or a retreat from progress but a consumer-driven response. Businesses rely on consumer demand to shape their strategies, not agendas of marketing teams or external pressure groups. When social initiatives tied to DEI lead to financial losses, businesses pivot, demonstrating these initiatives are removed for economic reasons.
Social agendas, including DEI, often become political, alienating significant portions of the customer base and disrupting the primary purpose of business—to provide value and generate profit. Many consumers are increasingly turned off by the ubiquity of DEI messaging in commercials, television shows, and advertising. This constant emphasis on social issues can come across as forced or inauthentic, causing audiences to disengage from brands that prioritize social signaling over quality, value, or relevance. Transparent pandering under the guise of inclusivity erodes trust and loyalty, driving consumers to seek alternatives.
The framing of DEI as an evolving business imperative also ignores market trends showing growing skepticism toward these initiatives. Marketing an agenda instead of responding to consumer needs reflects a disconnect between brands and their audiences. Many consumers view such efforts as prioritizing intersectionality over merit and quality, creating the perception that inclusion initiatives exclude individuals who may be more deserving based on merit alone. This dynamic undermines the goals DEI claims to achieve, fostering division rather than unity.
Moreover, the claim that diverse media suppliers or multicultural marketing teams hold untapped influence over audiences assumes a one-size-fits-all approach to consumer behavior, which is demonstrably untrue. Success in marketing requires meeting audience preferences, not adhering to abstract diversity principles. By prioritizing an agenda over measurable outcomes, companies risk alienating customers and stakeholders who expect results-driven decision-making.
Inclusive marketing, when done authentically and aligned with consumer demand, can be positive. However, the overemphasis on DEI as a universal growth driver ignores market behavior. The focus should be on delivering value, quality, and relevance—not pushing social agendas that many view as divisive. For brands, success lies in listening to consumers, prioritizing merit, and maintaining their core purpose of providing products and services that resonate.
Reply

Ronald Kurtz from American Affluence Research Center, January 2, 2025 at 3:01 p.m.

Regret that opposition to DEI in many fields of business, education, etc. seems to be promoted by those in the extreme right of the political spectrum. The polarization of our country between both the fringe left and right will continue as long as it is beneficial for the career politicians, who are ultimately the root cause of why we cannot achieve bi-partisan compromises to resolve our major inational ssues

John Caldwell from JACaldwell Inc replied, January 2, 2025 at 5:17 p.m.

Your comment touches on political polarization and the role of career politicians, but how does that connect to the article or my comments? The article is focused on DEI in marketing as a business strategy, while my comments critiques whether DEI is truly effective or just a trend that's out of step with consumer demand.

Your point about the "extreme right" opposing DEI feels more like a broad statement about society rather than a response to the discussion. It also seems like a lukewarm acceptance of DEI without critically engaging with the challenges or arguments raised. For example, my comments questions whether DEI initiatives always align with what consumers actually want, and whether focusing on social agendas risks alienating customers. Do you think that’s a valid concern, or is there another perspective you’d bring to the table?

It might help to tie your thoughts back to the main discussion—does political polarization actually explain businesses backing away from DEI, or is it something else entirely?

Ronald Kurtz from American Affluence Research Center replied, January 2, 2025 at 6:15 p.m.

To be clearer, I was trying to say that corporations seem to be announcing their abandonment of DEI programs primarily because they are coming under social pressure (perhaps from only a small psegment of consumers) that is being promoted by the extreme right of the political spectrum. Just as you say in your last paragraph, I do not believe that social policy, as a general rule, should be an element of corporate marketing strategy. There will always be consumers on different sides of each social policy, especially given the push of career politicians, and thus there will be a risk of alienating some consumers who might otherwise be a good prospect if the product value, quality, and relevance are right.

John Caldwell from JACaldwell Inc replied, January 2, 2025 at 6:31 p.m.

Thank you for clarifying further. Your point about corporations responding to social pressure is insightful, but it raises another question: how might these actions—whether embracing or abandoning DEI—be negatively interpreted by the dominant population, and what impact could that have on a business's primary purpose of delivering value and generating profit?

For instance, if a company heavily promotes DEI, some in the dominant population might perceive it as prioritizing social agendas over merit, quality, or relevance. This perception could alienate a significant portion of consumers who feel excluded or undervalued, even if that’s not the company’s intent. Similarly, abandoning DEI initiatives in response to political or social pressure might be seen as caving to external agendas, which could erode trust with other segments of the population.

This dynamic touches on the central question of the article and the first comment: can DEI truly drive business growth, or does it risk polarizing the audience a brand seeks to serve? If the perception of exclusion, whether due to overemphasis or abandonment of DEI, undermines consumer trust, doesn’t that directly threaten a business’s ability to fulfill its primary purpose?

Ronald Kurtz from American Affluence Research Center replied, January 3, 2025 at 1:31 p.m.

As I said, I think it is usually risky and probably a bad idea to make social policy an element of corporate marketing strategy. I sometimes stretch my comments to be able to make the point that I strongly feel career poiticians are ultimately the root cause of our inability to resolve key national issues in a bi-partisan common sense fashion.

Congress, which has a very low approval rating, says voters want to drain the swamp and clear the deep state but that first requires them to make bold changes that prevent people from becoming career politicians.

John Caldwell from JACaldwell Inc, January 3, 2025 at 2:01 p.m.

Got it, and I see where you're coming from. It sounds like your core point is that marketing strategies should avoid taking sides on social policies because it risks alienating customers, which ties back to the article and the first comment. That makes sense—successful marketing should focus on connecting with consumers across the board, not picking sides in divisive issues.

That said, your pivot to career politicians feels like it stretches beyond the scope of this discussion. While it’s true that polarization makes addressing big issues harder, it’s less clear how that directly ties to the DEI topic. Are you suggesting that corporations are being influenced by political agendas driven by career politicians, and that’s why DEI has become so central in some cases? Or is it more that the broader environment of polarization makes it hard for businesses to take any stance without backlash?

If anything, it raises an interesting question: can businesses find a way to focus purely on delivering quality and value without getting caught in the political crossfire? Or has the cultural landscape made that nearly impossible? Curious to hear your thoughts on how corporations can navigate that balance.

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The Evolution Of DE&I: How Inclusive Marketing Drives Business Growth

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