Why DEI Is a Competitive Advantage in Employer and Corporate Branding
Diversity, Equity, and Inclusion (DEI) is more than a social initiative—it is a business strategy that strengthens corporate brands, enhances employer reputation, and directly impacts profitability. In today’s political climate, some companies are reevaluating their DEI commitments, but the smartest brands are doubling down. Companies that maintain and evolve their DEI efforts will lead in talent acquisition, customer loyalty, and long-term financial performance.
Baker understands that DEI is a critical factor in shaping a company’s identity, messaging, and overall reputation. Companies that integrate DEI into their brand strategy not only future-proof their business but also create more resilient, attractive, and high-performing organizations.
Gary Baker, founder of Baker, has long emphasized that successful corporate brands must have a heart and soul. DEI is not just about compliance—it is a key element of storytelling and reputation management. The brands that thrive are those that authentically align with the values of their employees, customers, and stakeholders.
How DEI Strengthens Corporate and Employer Branding
For organizations debating the future of their DEI efforts, the business case is clear. Companies that invest in DEI see measurable financial, talent, and brand benefits that directly impact their long-term success.
1. Financial Performance: More Inclusive Companies Outperform Competitors
A growing body of research confirms that diversity in leadership and workforce composition is a driver of business success. Companies with strong DEI initiatives experience higher revenue, stronger investor confidence, and long-term profitability.
- McKinsey research shows that companies with diverse executive teams are 38% more profitable than those without diversity.
- Boston Consulting Group found that companies with above-average diversity generate 19% more revenue from innovation.
- Investors are increasingly favoring DEI-forward companies. Firms that prioritize ESG (environmental, social, and governance) and DEI efforts tend to see higher stock valuations and greater long-term shareholder confidence.
As investors, customers, and employees scrutinize corporate commitments to DEI, companies that remain proactive will maintain a stronger market position and a more resilient brand.
2. Stronger Employer Brand: Attracting and Retaining Top Talent
In an era where employer branding is critical for recruitment and retention, DEI is no longer optional—it is a competitive differentiator. Job seekers, particularly Gen Z and Millennials, actively seek out companies that align with their values.
- 76% of job seekers say a diverse workforce is an important factor when evaluating potential employers (Glassdoor).
- 83% of Gen Z candidates consider a company’s commitment to DEI as a crucial factor when choosing an employer (Monster.com).
- 77% of Gen Z respondents believe it is vital to work for a company whose values align with their own (Network of Executive Women).
- 67% of Gen Z respondents have witnessed workplace discrimination, and 44% have experienced it themselves (Tallo study).
Companies that scale back DEI efforts risk losing top talent, leading to increased recruitment costs and lower employee engagement. Replacing an employee can cost up to 2.5 times their salary, making talent retention a financial priority as well as a cultural one.
Baker has witnessed how employer branding has evolved over time. He notes that companies once focused solely on financial performance in their corporate storytelling, but today, employer brand and corporate values must be front and center to attract the best talent and maintain market relevance.
3. Brand Reputation and Consumer Loyalty
Customers increasingly make purchasing decisions based on a company’s values. A strong DEI commitment is not just an internal strategy—it is a brand differentiator that influences customer perception, engagement, and trust.
- Three in four consumers say they will pay more for brands that reflect their values (eMarketer).
- DEI strengthens consumer trust—authentic representation in branding leads to higher engagement and stronger customer retention.
- Companies that abandon DEI risk public backlash, which can be costly to repair and lead to long-term brand erosion.
Brands that maintain consistency in their DEI messaging will not only avoid reputational risks but will also build deeper relationships with their customers and stakeholders.
The Risk of Eliminating DEI: Reputation, Profit, and Future Growth
While some companies are quietly retreating from DEI due to political pressures, those that do so risk significant consequences.
- Loss of Talent – Companies that step back from DEI initiatives struggle to hire and retain top professionals.
- Investor Scrutiny – ESG-focused investors are closely monitoring corporate DEI efforts. Companies that deprioritize DEI could face reduced access to capital and weaker investor confidence.
- Brand Erosion – Organizations that abandon DEI lose trust with employees, customers, and shareholders, which can take years to rebuild.
- Falling Behind Competitors – Businesses that fail to adapt to demographic and societal changes will lose market share to companies that embrace inclusivity.
“Corporate storytelling is about positioning a brand for success in the long run,” Gary Baker explains. “Companies that abandon DEI are at risk of losing their narrative, and once you lose control of your story, it is incredibly difficult to regain.”
How Companies Can Maintain and Strengthen DEI Without Political Risk
For businesses facing internal hesitation or external scrutiny, reframing the DEI conversation can help maintain momentum while avoiding unnecessary controversy.
1. Reframing the DEI Narrative for Corporate Leaders
- Focus on business impact rather than political terminology.
- Shift language from “diversity and inclusion” to talent excellence, workforce sustainability, and market expansion.
- Emphasize the financial and brand benefits of inclusive hiring and leadership.
2. Embedding DEI into Corporate and Employer Brand Strategies
- Align DEI messaging with corporate values and long-term goals.
- Ensure employer branding showcases an inclusive, forward-thinking work culture.
- Use authentic storytelling to highlight real impact rather than performative initiatives.
3. Integrating DEI into Business Strategy, Not Just HR
- Position DEI within financial reports, investor updates, and corporate strategy rather than as a standalone HR initiative.
- Tie DEI efforts to product innovation, global market expansion, and corporate reputation management.
- Promote DEI through sustainability and ESG reporting, ensuring it remains a core part of the company’s ethical framework.
Baker’s Expertise: Helping Companies Build Resilient, Inclusive Brands
At Baker, we specialize in corporate branding and employer brand strategy, ensuring that DEI is not just a checkbox but a core pillar of a company’s success story. Our expertise in storytelling, positioning, and reputation management helps organizations:
- Craft compelling DEI-driven brand narratives that resonate with employees, investors, and customers.
- Align corporate messaging with business objectives, ensuring leadership buy-in.
- Develop strategic communications that reinforce inclusion without political risk.
“Branding is about consistency,” says Gary Baker. “If a company stands for something today but abandons it tomorrow, it weakens the brand’s foundation. The companies that win are those that stay the course, even when the political winds shift.”
The Future Belongs to Brands That Stay the Course
As the world evolves, companies that embrace inclusivity will lead the market, attract top talent, and maintain a strong corporate reputation. Brands that retreat from DEI will find themselves losing relevance, customers, and credibility.
Baker helps companies position DEI as a strategic advantage, ensuring that their corporate and employer brands are built for the future. Let’s work together to create a brand that stands for something—and wins in the process.
Contact Baker today to develop a DEI-driven strategy that secures long-term success.