Ad Agency Duo, Ogilvy and Fitzco, Foster Human Connections and Propel Business Growth via Diversity, Equality, and Inclusion Initiatives
Alright, let's take a gander at this curious turn of events in the marketing world. The good ol' DEI (Diversity, Equity, and Inclusion) initiatives, which saw a significant boost following George Floyd's tragic demise in 2020, are, unfortunately, taking a nosedive. Companies such as Bud Light, Target, and most recently Tractor Supply, have faced consumer backlash that's put the brakes on numerous DEI programs. Agencies and businesses alike have pulled back on their DEI agendas, but two agencies are bucking the trend and amping up their DEI efforts.
Enter Ogilvy, a company that's creating an inclusive environment for its employees and clients, and reaping the benefits. They've rolled out a program that connects folks across offices and countries, fostering an opportunity to get to know one another through their differences and similarities.
Now, why are agencies like Ogilvy putting so much effort into DEI when many seem to be scaling it back? Well, there are a few strategic, cultural, and legal reasons for it.
First off, DEI initiatives are becoming more crucial for businesses. They're linked to talent retention, innovation, and consumer alignment. Ogilvy, for instance, uses their DEI groups to retain diverse employees and align with consumers, which helps tackle talent shortages.[2] Age-diverse teams have also been shown to boost resilience and consumer relevance, especially as older demographics drive projected spending growth.[4]
Secondly, there's the risk of discrimination claims and consumer distrust. Despite consumer backlash, the risks of discrimination claims (averaging £103,000 per age-related case in the UK)[4] along with consumer distrust are still present. Maintaining DEI programs helps agencies avoid these risks and position themselves as employers of choice in a rapidly shifting talent market.[1][4]
Thirdly, it's about cultural leadership. Advertising has a profound impact on shaping culture, and agencies doubling down on DEI aim to remain influential in this era that demands authentic representation.[2][5] Ogilvy's non-hierarchical, mentorship-focused approach exemplifies this cultural commitment.
Lastly, it's all about strategic differentiation. While some agencies retreat from DEI due to budget cuts or political pushback, others, like AVOQ, leverage inclusion initiatives to provide better outcomes for their clients and adapt to high-stakes policy debates.[5] This aligns with research that shows inclusive workplaces offer a competitive advantage.[4]
It's clear that the divide in the industry reflects broader tensions: short-term backlash versus long-term bets on demographic shifts (e.g., older consumers dominating spending by 2040)[4] and employee expectations for equitable workplaces.[1][3] So here's to the agencies that are holding their ground, prioritizing DEI despite the pushback!
- Notable agencies like Ogilvy have escalated their DEI efforts, fostering an inclusive environment that encourages interactions among employees from diverse backgrounds, showcasing the benefits of their approach.
- Agencies such as Ogilvy prioritize DEI initiatives due to the implications for talent retention, innovation, and consumer alignment, as evidenced by their use of DEI groups to retain diverse employees and remain consumer-centric.
- Strictly adhering to DEI principles helps agencies like Ogilvy mitigate potential risks of discrimination claims and consumer distrust, positioning themselves as desired employers in the rapidly evolving talent market.
- With a non-hierarchical, mentorship-focused approach, agencies like Ogilvy demonstrate cultural leadership in shaping the industry by promoting authentic representation and fostering a more inclusive work environment.
- Agencies like Ogilvy stand out in the market by leveraging DEI initiatives to offer clients better outcomes and adapt to high-stakes policy debates, positioning themselves as strategically differentiated in the field of health-and-wellness, mental-health, lifestyle, fashion-and-beauty, and other sectors.
