Tag: Firm

New York
CNN
 — 

Some of the biggest brands in America, including Amazon, Meta, Walmart and McDonald’s, have recently changed or ended their diversity, equity and inclusion (DEI) programs. But e.l.f. Beauty, a popular cosmetics brand, is a rare company vocally touting its diversity efforts and inclusive marketing like its “So Many Dicks” campaign.

The provocative advertising campaign last year highlighted that nearly as many men named Richard, Rick or Dick served on public US company boards as women altogether.

“There’s nothing wrong with being Richard, Rick or Dick, but we wanted to shine a light on ‘let’s give other people a chance’ because we’ve seen the benefits in our own business,” e.l.f. CEO Tarang Amin said in an interview last week with CNN. E.l.f is one of only two publicly traded companies with a board that’s more than 78% women and 44% people of color.

E.l.f, which stands for “eye, lip, face” and sells at Walmart, Target and Walgreens is making the business case for diversity efforts at a moment when these initiatives are under attack across the country.

DEI, or diversity, equity and inclusion, has become a dirty word on the right. Many companies are pulling back on DEI programs and socially driven marketing, fearful of becoming the next Bud Light. Bud Light’s parent company A-B InBev lost as much as $1.4 billion in sales because of backlash to Bud Light’s brief partnership with a transgender influencer.

Other companies have altered DEI programs in response to opposition from right-wing activists, lawsuits from conservative legal groups, demand from conservative-leaning customers and other factors. President Donald Trump this week also placed employees in any federal diversity, equity, inclusion and accessibility offices on leave, and the Trump administration plans to take further aim at diversity programs.

But E.l.f., based in Oakland, California, is standing behind DEI because it has an employee base and loyal following of younger, more diverse consumers that back its efforts.

Comments like “I have never loved ELF more in my life!!!” poured in on Instagram in response to e.l.f’s “So Many Dicks” campaign. “I’m so proud of this brand,” another said. While the majority of social media posts were positive, support for the campaign wasn’t universal. Some people questioned what corporate board representation had to do with makeup and said e.l.f. should “leave politics and your opinions on social issues out of cosmetics.”

E.l.f. has reaped the benefits of its strategy. The company has posted 23 consecutive quarters of sales growth, and its stock has increased by more 700% over the past five years.

E.l.f. doesn’t have a DEI team, but its commitment to hiring a diverse workforce across gender, race, sexual orientation, nationality and other demographic lines has driven its success, Amin said. Around 75% of its roughly 500 employees are women and 40% are people of color. As part of e.l.f.’s diversity and inclusion strategy, the company also features transgender and non-binary models in advertising.

“Diverse voices actually help us because they’re bringing different perspectives,” Amin, 59, said. Companies that abandon their diversity efforts risk losing out on “incredible talent that has different points of view and that add perspective to a company.”

DEI is generally a mix of employee training, employee resource networks and recruiting practices to advance representation of different races, genders and classes, people with disabilities, veterans and other underrepresented groups. Opponents like Elon Musk say DEI represents “reverse racism” and has claimed that race now trumps all qualifications for hiring and promotions.

Companies that have reversed DEI efforts sometimes are “succumbing to pressures” of anti-DEI sentiment, Amin said. “They’re reacting to one constituency.”

E.l.f. does not risk as much backlash from its approach as other brands because it has a concentrated base of Millenial and Gen Z consumers that are likelier to support DEI efforts, said Anna Glassgen, an analyst who covers the brand at B. Riley Financial.

Women, workers under 30 and minority employees are the most likely to say focusing on DEI at work is a good thing, according to 2023 polling from Pew Research Center.

“The majority of folks who would complain about e.l.f.’s DEI perspective are not their target consumers,” said Jarvis Sam, a former chief diversity, equity and inclusion officer at Nike and the founder of The Rainbow Disruption, a DEI consulting firm. The beauty and cosmetics industry has long been scrutinized for a lack of diversity, and e.l.f.’s inclusive marketing efforts helped distinguish the brand from older, more established beauty lines such as Revlon, he said.

CEO Amin also is not concerned about backlash to e.l.f.’s efforts, including from right-wing activists like Robby Starbuck.

Starbuck, a former Hollywood music video director-turned-conservative activist, has caught fire campaigning online against major companies’ DEI programs and other progressive initiatives. He has targeted companies such as John Deere, Tractor Supply and others online and claimed credit for many of the changes they are making.

Starbuck would be ill-advised to target e.l.f.’s diversity efforts, Amin said.

“Our community is highly vocal and highly loyal, so it would be a mistake for him to start tweeting on that because they can be pretty vicious when people go against their beloved e.l.f.,” he said.

Despite some companies’ changes, Amin also said CEOs and business leaders he speaks to are still committed to expanding diversity within their companies.

“I think a lot is made out of this whole anti-DEI thing,” he said. “I think more people are committed to having more diverse workforces that are inclusive than there are people who are not.”

Other companies are also defending DEI, such as Costco and Apple.

Costco’s board of directors recently recommended that its shareholders vote against a proposal brought by a conservative think tank, the National Center for Public Policy Research, that would require Costco to report on the financial risks of maintaining its diversity and inclusion goals. The group criticized Costco for possible “illegal discrimination” against employees who are “white, Asian, male or straight.”

Costco said its DEI efforts help the company attract and retain a wide range of employees and improve merchandise and services in stores. Costco also said its members want to interact with a diverse employee base.

“Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” Costco said in its proxy statement to investors.

Costco “framed it well in terms of when they have a more diverse workforce, they see better engagement,” Amin said. “It’s the same thing for us.”

New York
CNN
 — 

Some of the biggest brands in America, including Amazon, Meta, Walmart and McDonald’s, have recently changed or ended their diversity, equity and inclusion (DEI) programs. But e.l.f. Beauty, a popular cosmetics brand, is a rare company vocally touting its diversity efforts and inclusive marketing like its “So Many Dicks” campaign.

The provocative advertising campaign last year highlighted that nearly as many men named Richard, Rick or Dick served on public US company boards as women altogether.

“There’s nothing wrong with being Richard, Rick or Dick, but we wanted to shine a light on ‘let’s give other people a chance’ because we’ve seen the benefits in our own business,” e.l.f. CEO Tarang Amin said in an interview last week with CNN. E.l.f is one of only two publicly traded companies with a board that’s more than 78% women and 44% people of color.

E.l.f, which stands for “eye, lip, face” and sells at Walmart, Target and Walgreens is making the business case for diversity efforts at a moment when these initiatives are under attack across the country.

DEI, or diversity, equity and inclusion, has become a dirty word on the right. Many companies are pulling back on DEI programs and socially driven marketing, fearful of becoming the next Bud Light. Bud Light’s parent company A-B InBev lost as much as $1.4 billion in sales because of backlash to Bud Light’s brief partnership with a transgender influencer.

Other companies have altered DEI programs in response to opposition from right-wing activists, lawsuits from conservative legal groups, demand from conservative-leaning customers and other factors. President Donald Trump this week also placed employees in any federal diversity, equity, inclusion and accessibility offices on leave, and the Trump administration plans to take further aim at diversity programs.

But E.l.f., based in Oakland, California, is standing behind DEI because it has an employee base and loyal following of younger, more diverse consumers that back its efforts.

Comments like “I have never loved ELF more in my life!!!” poured in on Instagram in response to e.l.f’s “So Many Dicks” campaign. “I’m so proud of this brand,” another said. While the majority of social media posts were positive, support for the campaign wasn’t universal. Some people questioned what corporate board representation had to do with makeup and said e.l.f. should “leave politics and your opinions on social issues out of cosmetics.”

E.l.f. has reaped the benefits of its strategy. The company has posted 23 consecutive quarters of sales growth, and its stock has increased by more 700% over the past five years.

E.l.f. doesn’t have a DEI team, but its commitment to hiring a diverse workforce across gender, race, sexual orientation, nationality and other demographic lines has driven its success, Amin said. Around 75% of its roughly 500 employees are women and 40% are people of color. As part of e.l.f.’s diversity and inclusion strategy, the company also features transgender and non-binary models in advertising.

“Diverse voices actually help us because they’re bringing different perspectives,” Amin, 59, said. Companies that abandon their diversity efforts risk losing out on “incredible talent that has different points of view and that add perspective to a company.”

DEI is generally a mix of employee training, employee resource networks and recruiting practices to advance representation of different races, genders and classes, people with disabilities, veterans and other underrepresented groups. Opponents like Elon Musk say DEI represents “reverse racism” and has claimed that race now trumps all qualifications for hiring and promotions.

Companies that have reversed DEI efforts sometimes are “succumbing to pressures” of anti-DEI sentiment, Amin said. “They’re reacting to one constituency.”

E.l.f. does not risk as much backlash from its approach as other brands because it has a concentrated base of Millenial and Gen Z consumers that are likelier to support DEI efforts, said Anna Glassgen, an analyst who covers the brand at B. Riley Financial.

Women, workers under 30 and minority employees are the most likely to say focusing on DEI at work is a good thing, according to 2023 polling from Pew Research Center.

“The majority of folks who would complain about e.l.f.’s DEI perspective are not their target consumers,” said Jarvis Sam, a former chief diversity, equity and inclusion officer at Nike and the founder of The Rainbow Disruption, a DEI consulting firm. The beauty and cosmetics industry has long been scrutinized for a lack of diversity, and e.l.f.’s inclusive marketing efforts helped distinguish the brand from older, more established beauty lines such as Revlon, he said.

CEO Amin also is not concerned about backlash to e.l.f.’s efforts, including from right-wing activists like Robby Starbuck.

Starbuck, a former Hollywood music video director-turned-conservative activist, has caught fire campaigning online against major companies’ DEI programs and other progressive initiatives. He has targeted companies such as John Deere, Tractor Supply and others online and claimed credit for many of the changes they are making.

Starbuck would be ill-advised to target e.l.f.’s diversity efforts, Amin said.

“Our community is highly vocal and highly loyal, so it would be a mistake for him to start tweeting on that because they can be pretty vicious when people go against their beloved e.l.f.,” he said.

Despite some companies’ changes, Amin also said CEOs and business leaders he speaks to are still committed to expanding diversity within their companies.

“I think a lot is made out of this whole anti-DEI thing,” he said. “I think more people are committed to having more diverse workforces that are inclusive than there are people who are not.”

Other companies are also defending DEI, such as Costco and Apple.

Costco’s board of directors recently recommended that its shareholders vote against a proposal brought by a conservative think tank, the National Center for Public Policy Research, that would require Costco to report on the financial risks of maintaining its diversity and inclusion goals. The group criticized Costco for possible “illegal discrimination” against employees who are “white, Asian, male or straight.”

Costco said its DEI efforts help the company attract and retain a wide range of employees and improve merchandise and services in stores. Costco also said its members want to interact with a diverse employee base.

“Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” Costco said in its proxy statement to investors.

Costco “framed it well in terms of when they have a more diverse workforce, they see better engagement,” Amin said. “It’s the same thing for us.”