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The advertising industry is at an inflection point, grappling with the fallout of a shifting political landscape.
Since the reascendancy of president Donald Trump, brands that once championed diversity, equity, and inclusion are now retreating, with Target, Meta, and Walmart among those pulling back efforts. In response, activists are calling for boycotts, warning that companies abandoning their DEI commitments may be underestimating the long-term impact.
Meanwhile, brands like Ben & Jerry’s, Costco, e.l.f. Beauty, and Delta have remained steadfast in their commitment to inclusivity, recognizing that their future consumers—Gen Z and the rapidly emerging Gen Alpha—care deeply about these values.
History has shown us how quickly societal trends can shift. In 2020, DEI initiatives were widely publicized, with companies pledging to increase minority representation, invest in Black-owned businesses, and overhaul internal policies. Yet, just as swiftly as DEI was championed post-2020, it is now being cast aside. We saw the same pattern with Covid-19: mass adoption of hygiene and vaccine protocols, followed by a rapid return to pre-pandemic behaviors.
Trump’s new presidency will last four years, but times change; what will come next for brands that are abandoning internal and external DEI advocacy? As divided as the electorate is, the next administration could swing public sentiment back toward DEI and corporate social responsibility. If that happens, brands that retreated from inclusivity may find themselves on the wrong side of history, struggling to regain consumer trust.
Business risks
Gen Z and Gen Alpha are like elephants—they don’t forget. Gen Alpha, poised to be the largest consumer group in history, will soon be making purchasing decisions. Brands pulling back DEI efforts to appease today’s political climate may find themselves abandoned by the very consumers they once sought to attract.
Take Target, for example. Historically, the company has been known for inclusivity, yet it recently announced the discontinuation of many DEI initiatives, including its Racial Equity Action and Change (REACH) program, which aimed to invest over $2 billion with Black-owned businesses by the end of 2025.