NAACP Launches Black Consumer Advisory: A Guide to DEI-Friendly Brands

Washington Reports Actions to Direct Black Spending Power

The National Association for the Advancement of Colored People (NAACP) is encouraging Black Americans to support companies that maintain or expand diversity, equity, and inclusion (DEI) initiatives. In response to conservative pressure, the organization is providing a list of companies that have upheld or restored their DEI commitments.

Motivation and Consumer Impact

The NAACP’s spending guide underscores the importance of DEI initiatives, which are essential for the social and economic advancement of Black communities. By 2030, Black Americans are forecasted to spend nearly $2 trillion annually on goods and services, according to the McKinsey Institute for Black Economic Mobility.

NAACP President’s Statement

“Diversity is better for the bottom line,” declared Derrick Johnson, the President of the NAACP. “In a global economy, those who resist embracing multicultural consumerism and business will be left behind.”

The Consumer Advisory

The NAACP advises that this guide does not constitute a boycott but rather an opportunity for “buy-in” with companies that align with their values. The initiative encourages consumers of all backgrounds to consult the Black Consumer Advisory.

Influential Companies and Their Stances

The NAACP is engaging with executives at companies reversed their DEI policies. Notable among these are Lowe’s, Target, Walmart, Amazon, Meta, McDonald’s, and Tractor Supply. The NAACP will continually update this guidance as companies modify their commitments to DEI.

The Historical Context

This initiative emerges against a backdrop of pressure on corporations by the Trump administration and Republican-led states to dismantle DEI policies.Shortly after taking office, President Trump issued an executive order aimed at terminating “illegal preferences and discrimination” in the government and encouraging private enterprises to do the same.

Understanding DEI Policies

DEI initiatives encompass programs aimed at promoting fair treatment, unbiased hiring, and cooperation among individuals from various backgrounds. These programs frequently include anti-discrimination policies and training that educate staff on fostering inclusive values.

Criteria for the Advisory

The NAACP analyzes companies that revert on previous commitments by actions like removing diversity officer roles, ending diversity-oriented hiring practices or supplier diversity standards, and diminishing investments in Black communities such as financial backing for historically Black colleges and universities.

McKinsey’s Insights

A study by McKinsey also highlighted that Black Americans are disproportionately less likely to access the services and products of leading companies due to their residential locations.

Johnson’s Vision

Johnson seeks to provide a framework for Black communities navigating their spending decisions. “If corporations want our dollars, they better be prepared to do the right thing.”

Legal Controversies

The Trump administration’s directives on DEI faced legal challenges. In February, a coalition that included the mayor of Baltimore and an association of university professors sued the Trump administration, arguing the executive orders violated civil rights laws.

Broader DEI Litigation Landscape

Litigation concerning DEI in the private sector is comprehensive. The Federal Communications Commission challenges Comcast’s DEI policies, and Missouri filed a lawsuit against Starbucks’s practices. Companies facing shareholder resolutions questioning their DEI practices include Apple, Berkshire Hathaway, Coca-Cola, IBM, Mastercard, and Pepsico.