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Brandiary > Marketing > Agencies are quietly backing away from DEI initiatives

Agencies are quietly backing away from DEI initiatives

News Room By News Room April 20, 2025 6 Min Read
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As the Trump administration continues to target DEI efforts across the country, at least two major advertising holding companies have quietly dialed back some of their DEI pledges.

In recent months, both WPP and IPG have removed language on their websites emphasizing diversity, according to website captures from the Wayback Machine reviewed by Marketing Brew. WPP removed a paragraph on its “Belonging” webpage, which had previously emphasized its “aim to build a workforce that reflects the diverse communities we serve.” The now-deleted paragraph also mentioned the company’s commitment to “actively promoting gender balance and racial equity” and its continuous effort “ to create opportunities for underrepresented groups.”

The change was made sometime since November (the Wayback Machine does not consistently capture every page on the web, so Marketing Brew could not determine the exact date of the change).

IPG, which Omnicom announced plans to acquire in a deal that is being reviewed by the FTC, removed a paragraph from the “Diversity and Inclusion” portion of its website that detailed that CEO compensation across the holding company would be tied to broader diversity goals. “A portion of each of our major companies’ CEOs’ performance objectives is tied directly to diversity,” the page previously read, according to Wayback Machine captures. “If a given company’s diversity goals are not met, that CEO’s incentive pay is adversely affected.”

That change was made sometime between February 20 and March 31, Marketing Brew determined, based on Wayback Machine captures.

When asked for comment, Jonathan Sanchez, WPP’s SVP of communications and public affairs in North America, referred Marketing Brew to comments made by WPP CEO Mark Read in the company’s annual report that was released last month, which replaced references to diversity, equity, and inclusion with “people and culture.” Those comments read:

“In today’s complex world, a pressing question for brands and organisations is whether to engage on social issues in a more contested public arena, and how to navigate the expectations of different audiences with competing views on sensitive topics. With political events much has changed over the last year. Some things, though, have not changed. At WPP our aim has always been to foster a culture of respect for one another in which everyone feels they belong and has the same opportunities to progress in their careers. We also believe a workforce that reflects the world around us, and the consumers our clients want to reach, helps us do the best work and is good for business. Like all companies with operations in the United States, we are monitoring developments and keeping any implications for our business under ongoing review. We will continue to meet legal requirements in all our markets.”

A representative for IPG did not return Marketing Brew’s requests for comment.

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Walking on eggshells? The changes mark the latest evidence of continued walkbacks across industries on DEI initiatives and efforts amid a broad federal effort to scale back corporate attempts to improve diversity, equity, and inclusion at their organizations. Dozens of companies across industries, including Amazon, Meta, Google, Disney, Paramount, Pepsi, and Warner Bros. Discovery, have recently scaled back their DEI commitments, and Comcast, NBCU’s parent company, is facing an FCC investigation into its DEI initiatives.

As of mid-March, more than 200 of the largest American corporations had removed mentions of DEI and related terms from their annual reports, according to the Financial Times.

For IPG, the removal of language tying CEO compensation to DEI goals comes amid its effort to merge with Omnicom, which was first announced in December. Shareholders from both companies approved the merger at a vote held last month, but approval from the FTC is still required, and in March, the FTC requested additional information, which Adweek reported could be a sign that there is further scrutiny about whether the merger could be anticompetitive. Nearly three-quarters of proposed mergers that undergo second requests are either abandoned or voluntarily restructured, according to a 2024 report from federal antitrust regulators

The number of companies incorporating DEI-related metrics in executive compensation had been on the rise starting in 2021, but declined in 2024, according to data from The Conference Board cited by Fortune.

Read the full article here

News Room April 20, 2025 April 20, 2025
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