Seven out of ten consumers say that a brand’s diversity and inclusion communications influence their purchasing decisions, according to Kantar’s The Brand Inclusion Index. Diversity ‘sells’, and many companies have embraced this trend, but have neglected to fully and consciously integrate these values into their business strategy. The result? So-called diversity washing.
Diversity washing is a poor practice in which companies try to appear inclusive and diverse without making genuine efforts or implementing significant changes in their business models. This approach, aimed at improving the company’s image, can carry significant risks. Not only does it undermine the authenticity of diversity efforts, but it can also alienate our key stakeholders – such as employees or social partners – who are looking for genuine engagement.
Despite the efforts of many companies to portray themselves as inclusive, according to the Kantar report, six out of ten people (58%) have experienced discrimination when purchasing a product or service. The figures are higher for people with mental and learning disabilities (68%) and 61% among the LGBTQ+ community. This data shows that diversity and inclusion are real issues that cannot be solved by image campaigns alone.
This socio-demographic reality should not escape the attention of brand managers, who need to evaluate and improve how they meet the needs and expectations of different social groups and younger consumers. Some data indicates that up to 46% of the world’s population has experienced discrimination in the past year, with a significantly higher percentage among disadvantaged demographic groups.
Inclusion as a value driver
We live in a diverse world, where globalization and greater awareness of differences have made us more heterogeneous – whether in terms of ethnicity, physical abilities, sexual orientation, or religious beliefs. In this context, new generations demand that everyone be welcomed and understood. Some research highlights the impact on sales of promoting practices and initiatives that encourage and celebrate diversity. Getting inclusion right automatically encourages more people to buy your brand because many now include it in their purchasing criteria. The problem occurs when companies focus solely on the economic benefits generated by inclusion and diversity, rather than their own internal business policies.
The implementation of diversity and inclusion should start is within organizations. Only then can communication and marketing strategies that truly respect differences be implemented. Companies have a responsibility to end discrimination, and they can do a lot about it – because much of it occurs in places they control, i.e., within the corporate culture itself.
Equal and unique: A campaign celebrating the role of women at Pernod Ricard Spain
In partnership with APPLE TREE, Pernod Ricard España launched an internal campaign to celebrate the company’s female talent. It was an opportunity to showcase, both internally and externally, the female talent within the company and amplify its equality messages, demonstrating that what matters is not gender, but talent.
The first place where the Diversity, Equity, and Inclusion strategy should be implemented is within the employee experience – both for current and future employees – because this is where most discrimination experiences occur. According to the same Kantar research, up to 28% of employees experienced some form of discrimination in the past year. This shows that there is still a lot of work to be done.
IKEA employees ake the doors off all cupboards to celebrate diversity
Another company celebrating diversity from within is IKEA. To celebrate LGTBIQ+ Pride, the Swedish retail giant highlighted the need to eliminate stigma and prejudice surrounding LGTBIQ+ people by promoting a message of equality and acceptance. They did this by removing all the doors from wardrobes in their stores and fostering a working environment where everyone feels 100% authentic and valued. This initiative was led by APPLE TREE, as the brand’s internal communications agency.
