Impact of DEI on Corporate Reputation: DEI Policies Endanger Brands as American Consumers Say "Enough!"

In recent months, major brands like Ford, Tractor Supply, John Deere, and Harley-Davidson have incurred damaging consumer backlash over Diversity, Equity, and Inclusion (DEI) policies. This trend is just beginning, and CEOs need to take notice. 

Consumer Backlash Against DEI

The presidential election reflected a growing shift among mainstream Americans. While economic factors played a role, surveys also revealed that voters were highly motivated by their growing frustration over left-wing social policy overreach. That backlash played a crucial role in President Trump’s swing state victories, particularly in the suburbs. 

Consumers have also shown they are increasingly willing to vote with their dollars, fueled in part by powerful social media influencers who “out” companies for promoting radical left-wing policies. Companies like RedBalloon, PublicSquare, and other founding pillars of the parallel economy have experienced rapid revenue growth over the past two years.

A February 2024 Workday survey revealed that 78% of CEOs increased their focus on

DEI in the past year. But now many of these companies are quietly eliminating DEI programs, including Microsoft, Google, and Meta. This trend is also taking hold among higher education, according to The Chronicle of Higher Education tracker of universities pulling back from DEI initiatives. 

Impact of DEI on Corporate Reputation

Consumers want companies to remain neutral on political issues, and they’re increasingly angered by overreaching DEI policies that promote “identity” over the American fundamentals of equal opportunity, hard work, achievement, and advancement. DEI evangelists such as Boston University’s Ibram Kendi exacerbate this angst by advocating for reverse discrimination.

On social media, DEI programs are being exposed for picking winners and losers based solely on gender or skin color and companies are being “outed” for threatening termination of any employee with a differing viewpoint.

Bud Light and Harley Davidson are still trying to recover from the negative publicity. 

It's Time to Rethink Corporate DEI Policies

If your company bought into the DEI-mania over the past four years, then its time to quickly reassess that move. Failure to do so could have lasting consequences, including loss of customer trust and loyalty and significant reputation damage.

Here’s how to start:

1. Audit Your Messaging: Review your online presence and other communications for language that could suggest preferential treatment based on identity. Emphasize universal American values such as mutual respect, achievement,and opportunity for all.

2. Focus on Merit: Prioritize policies that reward achievement, qualifications, and results over identity. For internal communications, emphasize excellence, company growth, competing in the marketplace, and other unifying themes.

3. Avoid Political Extremes: Keep your business out of cultural wars. Focus on providing value to customers without aligning with divisive political agendas.  Plant your flag firmly on the time-tested American principles of freedom, opportunity, advancement and achievement.

Conclusion: Protect Your Brand

American consumers are reasserting their belief in the American work ethic; that advancement and career growth comes through hard work, improvement, and achievement, not through one’s skin color or gender. 

In a competitive marketplace, businesses exist to serve their customers and deliver value to their shareholders. Unfortunately, too many companies have gotten caught up in left-leaning culture war politics, pushing “identity politics” that alienate large portions of their customer base. 

It’s time to pull back from the political extremes and return to the center of American values—where fairness, opportunity, and respect thrive without the baggage of divisive ideologies. 

About the Author

Tim Clark has been on the forefront of developing and growing parallel “Freedom Economy” brands.  He was the first Executive Vice President for Marketing & Communications at RedBalloon.work, where he helped grow organic website traffic by over 600% and increase company revenues by over 400%.  In partnership with PublicSquare and RedBalloon, Tim also founded the Freedom Economy Index survey which measures the opinions and experiences of the small-to-medium sized businesses on the front-lines of the US economy.

For over 30 years, Tim has fought to elect center-right political candidates in America’s toughest battlegrounds. His successes in heavily-Democratic districts reflects his ability to command the nuances of language to protect and promote his clients.