Corporate America is getting cold feet about DEI. Agencies don’t have to follow

Corporate America is getting cold feet about DEI. Agencies don’t have to follow

Shape History’s Bia Pennino lays out how recent political decisions may leave agencies with a greater DEI responsibility than they bargained for.

Picture this. You’re sitting across from a client who’s just dropped a bombshell.

“We’re scaling back our diversity efforts.”

It sounds familiar, right? Meta did it. McDonald’s did it. And right now, the entire corporate world seems to be playing a dangerous game of diversity chicken.

In cases like this, many might be tempted to retreat. But this is precisely when agencies need to step up, demonstrate leadership and take action.

Corporate America is getting cold feet about DEI. Supreme Court decisions, political pressure, corporate fear – it’s creating a perfect storm of retreat. The landscape has shifted dramatically since 2022, with companies increasingly nervous about diversity initiatives, and Trump’s recent executive orders effectively dismantling federal DEI programs have only intensified the corporate retreat from these efforts.

But for agencies committed to real change, this isn’t a roadblock. It’s an opportunity to prove that diversity isn’t just right – it’s smart business.

Educating for change

Sometimes, resistance to DEI stems from a lack of understanding or fear of getting it wrong. Imagine a client saying, “We’re worried DEI initiatives might alienate certain audiences.”

Don’t retreat, educate.

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Instead, tailor your approach to what keeps them up at night. Show them how DEI initiatives align with their business objectives, whether that’s expanding market reach, boosting brand reputation, or driving revenue.

Dive into existing research to uncover industry-specific insights. Offer to run custom studies or focus groups to explore how inclusivity could benefit their brand.

Collaborate on strategies to weave DEI into their DNA, ensuring their marketing authentically speaks to all communities.

Make the business case

Still not convinced?

Hit them with the heavy hitters. Bring in case studies from brands that have successfully maintained or even expanded their DEI efforts.

Take Nike, for instance, who appointed James Loduca as its chief DEI officer in 2023 to promote workplace diversity and tackle historical discrimination. Or look at Ben & Jerry’s, a company that has been a pioneer in social justice, offering domestic partnership benefits since 1989 and actively supporting racial equity through strategic partnerships with organizations like Race Forward and Color of Change.

These aren’t just token gestures. By embedding social responsibility into their core business strategy, companies like Nike and Ben & Jerry’s have shown how DEI can be a powerful differentiator. They’ve demonstrated that standing for something isn’t just morally right, it’s a smart business strategy that resonates with modern consumers who value authentic corporate citizenship.

And if case studies aren’t enough, let the numbers do the talking. McKinsey Diversity Matter report (2023) found that companies with greater ethnic representation were 39% more likely to outperform their less diverse counterparts. While Harvard Business Review found that diverse teams are 70% more likely to capture new markets. Make it clear that these aren’t just statistics, they’re a roadmap to success.

Transforming skepticism into understanding… and action

Numbers are great, but they don’t tell the whole story. Some clients who are hesitant about DEI need more than statistics – they need proof. And the most compelling proof comes from demonstrating how diversity drives real business success through tangible, real-life examples.

Here are practical ways to embody DEI principles and inspire clients to do the same:

  • Digital campaigns as a diversity catalyst – Digital campaigns offer a powerful platform to demonstrate the tangible value of DEI initiatives. Agencies can leverage A/B testing and audience segmentation to showcase how inclusive marketing resonates with diverse audiences. By running a campaign that highlights under-represented voices and measuring its performance against a more traditional approach, agencies can provide compelling evidence of inclusivity’s impact on engagement and ROI.

  • Diverse teams can spot the gaps more easily – Transformative DEI work starts with talent. Agencies can diversify their pipelines by partnering with UK institutions and organizations committed to diversity, such as Women in Tech UK, university diversity programs, and LGBTQ+ professional networks. A more diverse team can easily spot gaps and opportunities and make more constructive arguments when pushing back on clients’ requests or practices.

  • Setting clear inclusive standards – Implementing a robust code of conduct can set clear expectations for every stakeholder from the start. You can make it part of your contract with clients, freelancers and employees or introduce it as a separate document. By establishing these standards, agencies signal their genuine commitment to creating an environment where diversity is valued, respected and non-negotiable.

  • Show how to review work more inclusively – More often than not, the diversity and inclusivity elements of projects are lost with client feedback. Explaining what is expected in their review (and what you are not) and sharing a rationale behind the importance of representation and accessibility are ways to avoid this step back. You can also create a checklist, asking your client to consider a set of topics related to DEI when reviewing your work.

  • Measuring DEI impact—Measurement is critical. Setting clear DEI goals and implementing transparent tracking demonstrate genuine commitment. Agencies can monitor leadership diversity, gather audience feedback on campaign inclusivity, and assess digital product accessibility to prove that DEI isn’t just right — it’s a strategic advantage. These metrics provide tangible evidence of an agency’s dedication to diversity.

DEI isn’t a destination. It’s an ongoing journey of learning, adapting, and continuously improving. By taking these practical steps, agencies can lead by example, proving that inclusive practices aren’t just morally sound – they’re a blueprint for innovative, forward-thinking businesses.

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The choice is stark: do we follow the path of least resistance, or do we forge a new route that reflects the true complexity and potential of our diverse world? Every campaign, every hiring decision, and every strategic recommendation is an opportunity to demonstrate that diversity isn’t just good ethics – it’s an exceptional strategy.

This isn’t about being comfortable. It’s about being brave. About proving that in a world quick to retreat, some are always ready to advance.

Bia Pennino is strategy lead at Shape History and a member of Race Equity Steering Group at Shape History. Talk to Bia here.

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