Communicating DEI: Authenticity, Risk, and Inclusive Storytelling

In January 2025, Costco’s shareholders voted to uphold the retail giant’s diversity, equity, and inclusion (DEI) initiatives, with 98% of votes cast against a proposal by a conservative think tank claiming that they are illegal. The thinking is that fostering an inclusive and fair work environment promotes creativity and productivity, both of which boost bottom lines. Yet many big brands—including competitors Walmart, Target, and Amazon— have chosen to roll back their DEI programs amidst political pressure. The term ‘DEI’ itself has become charged with negative associations and some leaders have proposed alternative acronyms such as Merit, Excellence, and Intelligence (MEI) and Diversity, Opportunity, and Inclusion (DOI). 

I sat down with Bliss Impact Lead Megan Tuck to discuss the ongoing evolution of DEI communications and inclusive workplace programs. Here are her thoughts on the topic. 

Teryn: How should companies that have been pressured by stakeholders or consumers to roll back their DEI initiatives respond without sacrificing their brand values? 

Megan: It’s important to consider who the audience really is when brands are feeling pressured and to differentiate fear-based perceptions from true consumer sentiments. Companies should have data to back up that perceived pressure is in fact real and coming from their target audiences. Some organizations may look at scaling back DEI messaging as a risk management move, because not embracing DEI is a financial risk in and of itself.  

Data shows that more diverse companies perform better financially. The main priority of shareholders is to ensure the company’s financial success, so if doing away with DEI programs threatens performance, then voting to keep inclusive practices in place is the logical choice. 

Less than five years ago, many of the same brands that are now shuttering their DEI programs were posting in support of Black Lives Matter. If they’re now reversing course, then I doubt that DEI was ever truly a part of their brand values. This serves as a signal to consumers. Consumers will decide whether they want to support brands that, within a span of five years, have completely reversed the values they once claimed to champion. Perhaps they were never really about DEI and instead wanted to capitalize on a moment where they saw consumer dollars going toward companies that were more vocal about their diversity and inclusion efforts.  

T: How should companies communicate their DEI commitments during periods of political pressure and uncertainty? 

M: Marketing, communications, programmatic, and legal departments need to coordinate their efforts to ensure everyone is crystal clear about what the real legal risk is. At that point, they can begin sharing stories around diversity and inclusivity that align with the company’s unique brand values using language that is not politically charged or alienating. This can be an ideal opportunity to expand the meaning of DEI and educate people on its more expansive impacts.  

For example, an organization may prefer to say the words diversity, equity and inclusion instead of using the acronym DEI to emphasize the actual meaning of these words. Or brands can start by discussing topics such as inclusiveness and opportunities for all people to call in key stakeholders to themes that align with American values.  

T: What is your perspective on the way “DEI” as a term has been politicized? 

M: This also recently happened with ESG. It forced us to reconsider how we tell stories about climate and sustainability. In this situation, storytelling about resilience in communities arose as a way of talking about ESG while using language that holds positive connotations with a wide audience.  

We can likely better measure the real positive impact of DEI programming, not just language, over the long-term. This shift in language that we’re seeing now is primarily to mitigate short-term risk. Society is like a pendulum, and it swings back and forth. We may end up re-embracing certain language in time. 

T: What are the risks of retreating from DEI commitments versus maintaining them? 

M: There is a huge financial risk in retreating from DEI commitments and financial benefit to those brands that can authentically communicate their resolve to inclusive practices For example, shoppers have been staging buy-ins at Costco based on their DEI commitments. Values-aligned DEI messaging and real inclusively programming ultimately contribute to this. You’re otherwise leaving dollars on the table. 

Some would argue that there’s a financial risk of maintaining DEI programs because it could isolate customers. But shareholders, the people who most care about how well the business does financially, are overwhelmingly rejecting these anti-DEI proposals. This proves that maintaining DEI programs is more likely to mitigate financial risk. If company leaders act against the interest of 98% of shareholders, then they will isolate the people who are most invested in the performance of the business.  

T: DEI and merit-based hiring mean similar things by definition, but they’re understood with totally different connotations. What do you make of this? 

M: There’s something interesting about using ‘merit’ in this context. Because again, this is taking a term and charging it with another layer of meaning that isn’t really supposed to exist. It goes back to how implications of certain language changes over time, based on changing realities. 

In theory, DEI is merit based, right? DEI attempts to ensure that all Americans who are deserving are given an opportunity. When folks say, ‘merit based,’ it sounds like something was taken from someone else undeserving and given to another person. That leads into a whole different conversation about racism in America. I’ve seen more folks who are against DEI embracing ‘merit,’ but merit is part of the structure of DEI. But again, the challenge is changing hearts and minds.  

T: What is the relationship between DEI and business performance? How has it changed in recent years and how do you think it will continue to evolve? 

M: There is plenty of data showing that a diverse pool of employees working at companies that encourage inclusivity and differing perspectives leads to stronger bottom lines. For example, companies that have women on the board  do better financially than companies that do not have women on the board. That’s how DEI, which is inclusive of women as well as people of color, is supposed to work. 

But at least in the United States, companies have no scripted way to measure how profitable it is to bring more minds from different backgrounds and perspectives into a business. So, it’s up to each company to figure that out on its own, which is a challenge. 

Generally, diversity is not just a number to hit – whether it’s staff, supplier, or senior executive related. Leaders must make it clear that diversity is part of their business success, if it is. This will make it easier to communicate, because the commitment is coming from a place of authenticity. DEI programs should not be cast off to the side but should be integrated into all parts of a business. 

T: In the future, how do you think DEI storytelling will change, and what advice would you give to leaders developing DEI messaging strategies for 2025 and beyond? 

M: DEI storytelling isn’t going away. There are enough consumers who have made it clear that they are highly invested in stories of diversity, inclusion, acceptance, and belonging. They want to make space for folks who have not had it before, so the necessity for DEI communications is not going anywhere.  

However, companies who do zero storytelling now, wait for a pendulum swing, and then restart DEI storytelling again are going to lose. Social media has made it easy to consume stories, and to identify when and where stories are not being told. Consumers are smart and know when storytelling is truly authentic, especially when they can observe how a company acts over time. You’ll be hard pressed to find consumers who will believe your story later, if you don’t tell it now. Consumers need to see consistency and authenticity to build trust.  

T: Why is impact storytelling important? 

M: I was a sociology major in undergrad, and the two things that I was really interested in were wealth inequality and religion. Religion has been a powerful storytelling tool for thousands of years, but it works best when it is in service of the whole community, not just a few people. I think the same is true of social impact storytelling, when it’s done right—obviously not on par with the role of religion, but as it helps mold our society for the better. Storytelling is at its best when it provides moral lessons that communities can learn from. It is not done at its best when the story is morphed to serve the best interests of just a few people. 

We need to consider how we’ll tell the stories of today in the future. I’m curious how George Floyd’s story will be told 20 years from now. Best case scenario, it’s told in a way that remains true to reality and benefits our entire community.  

T: Any final thoughts? 

M: I’d like to reiterate that in the best-case scenario, we’re not in a position where we debate what DEI means. We are instead in a position where we collectively understand that DEI will make society better for all, not just the few. But knowing the time we’re in, and the current stories that are being told, we need to reflect on what is perception and what is reality. 

Brands have to think hard about who they are, why they exist, how they are telling stories of social impact and influence, and what it means to tell a story effectively. If they’re not doing this work, and they’re just throwing random ideas at the wall to see what sticks, then it’s a waste of time. This can be a hard truth to hear, because doing so involves deep reflection on a personal level. 

If you’ve decided you’re ready to maintain DEI storytelling, you need to be intentional and consistent with who you are as a brand and how that is communicated. Your DEI story shouldn’t be told in a vastly different way than every other story that’s told. It all needs to align with your brand, because otherwise, you’re wearing a costume and people can tell.  

By Teryn Colmery

Photo by Markus Winkler via Pexels