Consumers prefer companies with DEI policy

Author Moonshot.news

Published on: 14/08/2025

As businesses give in to the political backlash against diversity, they may be overlooking consumers. New research shows that nearly 70 per cent of consumers prefer companies that actively support diversity initiatives, Lucy Kallin, EMEA Executive Director at non-profit organisation Catalyst, writes in LSE Business Review. President Donald Trump’s executive order to stop federal DEI programs has led to many big companies, including big tech, announcing that they adjust to Trump’s policy.

A recent report by US financial data firm PitchBook shows that most of the largest publicly traded alternative asset managers in the US have removed significant parts of diversity, equity and inclusion initiatives from their annual filings to the SEC authority. 

“Our new research, jointly with the Meltzer Centre for Diversity, Inclusion and Belonging at New York University’s School of Law, reveals that nearly 70 per cent of surveyed consumers are more likely to buy from companies that actively support DEI. Among Gen Z and women, these numbers rise to 78 and 74 per cent respectively”, Kallin writes. “Crucially, more than a third (36 per cent) say they plan to boycott a company that scales back this work.”

“In recent months, a quarter of US shoppers say they have stopped supporting retailers due to political or values-based concerns, while 40 per cent report shifting their spending to better align with their beliefs. Whether through formal boycotts or quiet brand-switching, loyalty is shifting, and in a world of almost limitless choice, it must be earned. For a growing number of people, that loyalty is rooted in fairness, inclusion and responsible business practice.”

“This comes as no surprise to the 81 per cent of business leaders in our survey who acknowledged that DEI directly strengthens customer loyalty. Three-quarters (77 per cent) also report that DEI programmes are positively correlated with financial performance.” 

Kallin writes that around three-quarters (76 per cent) say they are more likely to stay with an employer that supports DEI. 

“Among Gen Z employees, that figure rises to 86 per cent, with 61 per cent saying they would not even apply to a company that fails to support it.”

“The survey also reveals that many organisational leaders in the US are treading cautiously. In response to the political and legal landscape, 78 per cent of senior leaders say they are rebranding DEI under alternative terms like “employee engagement”, “workplace culture”, “belonging” or “fairness.” 

“More employees than leaders (24 versus 12 per cent) say they expect DEI practices to become less embedded in their organisations over the next few years. Around two in five employees believe DEI is “completely” embedded into everyday workplace practices, leaving a lot to be desired for more than half of the employee group.”

“Companies also recognise the role of DEI in managing legal risk, particularly around discrimination claims. Nearly 90 per cent of legal leaders say that maintaining or expanding DEI programmes offers protection against legal exposure.”