The news: Amid broader controversies surrounding brands’ diversity, equity, and inclusion (DEI) stances, consumers are showing their commitment to companies that stand firm in their beliefs.

Nearly half (44%) of US adults stated they will increase support for brands who stand by their LGBTQ+ initiatives, a number that was especially notable among LGBTQ+ consumers, where 80% stated they would increase support, per a Disqo and Do the Werq study.

That data stands in contrast to a year that saw many brands, including T-Mobile and Target, waffle on their DEI commitments, putting a spotlight on diversity.

The power of staying committed: Consumers say they are adjusting spending based on a brand’s DEI stance—a pain point for those who pulled back like Target, but a boon for those like Costco who stuck to their guns.

• About 40% of US adults show willingness to reduce spending on brands in response to companies rolling back their DEI commitments, and 39% already have. Of this group, 17% would stop purchasing and tell others, while 15% would reduce purchasing.
• For each consumer who supports brands that step away from DEI initiatives, four to five are willing to reward companies that stand by them.
• Nearly half (46%) of consumers prefer brands that are willing to engage with social issues, and this expectation is especially prominent among LGBTQ+ consumers (64%).
• Almost one-quarter of Gen Z, a core buyer demographic, identifies as LGBTQ+. Stepping away from LGBTQ+ initiatives could sever engagement with this group.

The risks: While staying committed is important, it doesn’t negate current risks that brands face when being vocally committed to DEI and LGBTQ+ audiences.

• Brands maintaining DEI commitments risk backlash from conservative activists and are under heightened political pressures in the current climate. This could lead to public scrutiny and potential boycotts from consumers who oppose DEI, evidenced by backlash to Bud Light’s 2023 sponsorship with transgender influencer Dylan Mulvaney.
• However, Bud Light’s wavering response to the Mulvaney sponsorship ultimately alienated both conservatives and pro-transgender consumers—demonstrating that attempting to straddle opposing viewpoints can leave brands with support from neither side.
• Brands who remain vocal about their DEI efforts could face challenges if these efforts are perceived as insincere or if they fail to deliver on their promises.

What brands can do: Acknowledge the risk, but understand that backing away from DEI and LGBTQ+ initiatives will make it more difficult to reach the next generation of consumers.

There remain benefits of LGBTQ+ inclusive marketing, like its ability to increase brand loyalty (cited by 83% of US marketers), boost word-of-mouth (79%), and improve brand recall (76%). The pressure to scale back efforts is legitimate, but brands who remain vocal and steadfast stand to benefit in the long term by attracting key demographics committed to social causes.