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CNN
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Some of the largest brands in America, including Amazon, Meta, Walmart and McDonald’s, have recently changed or eliminated their diversity, equity and inclusion (DEI) programs. But Elf Beauty, a popular cosmetics brand, is a rare company that has been vocal about its diversity and inclusive marketing efforts, such as with its “So Many Dicks” campaign.

Last year’s provocative advertising campaign made it clear that there were almost as many men named Richard, Rick or Dick on the boards of US public companies as women overall.

“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 company,” said Tarang Amin, CEO of eleven, most recently in an interview week with CNN. Elf is one of only two publicly traded companies whose board is more than 78% women and 44% people of color.

Elf, which stands for “eye, lip, face” and is sold at Walmart, Target and Walgreens, makes a business case for diversity efforts at a time 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 retreating from DEI programs and social marketing for fear of becoming the next Bud Light. Bud Light’s parent company, AB InBev, lost up to $1.4 billion in sales due to the backlash over Bud Light’s brief partnership with a transgender influencer.

Other companies have changed 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 also furloughed employees across federal diversity, equity, inclusion and accessibility departments this week, and the Trump administration plans to further target diversity programs.

But Oakland, California-based Elf is behind DEI because the company has an employee base and a loyal following of younger, more diverse consumers who support its efforts.

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

Elf has reaped the rewards of his strategy. The company has posted 23 consecutive quarters of revenue growth and its inventory has increased more than 700% over the past five years.

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

“Diverse voices actually help us because they bring different perspectives,” said Amin, 59. Companies that abandon their diversity efforts risk losing “incredible talent that represents different viewpoints and brings perspective to a company.”

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

Companies that have rolled back DEI efforts sometimes “succumb to the pressure” of anti-DEI sentiment, Amin said. “They respond to a constituency.”

Elf doesn’t risk as much backlash as other brands with its approach because it has a concentrated base of Millennial and Gen Z consumers who are more likely to support DEI efforts, said Anna Glassgen, an analyst who covers the brand at B .Riley Financial observed.

According to a 2023 Pew Research Center survey, women, workers under 30, and minorities are most likely to say focusing on DEI at work is a good thing.

“The majority of people who would complain about Eleven’s DEI perspective are not their target customers,” said Jarvis Sam, former chief diversity, equity and inclusion officer at Nike and founder of The Rainbow Disruption, a DEI consulting firm. The beauty and cosmetics industry has long been criticized for a lack of diversity, and Elf’s inclusive marketing efforts have helped differentiate the brand from older, more established beauty lines like Revlon, he said.

CEO Amin is also not worried about the backlash to Eleven’s efforts, including from right-wing activists like Robby Starbuck.

Starbuck, a former Hollywood music video director turned conservative activist, has made a name for himself with online campaigns against major companies’ DEI programs and other progressive initiatives. He has targeted companies like John Deere, Tractor Supply and others online, taking credit for many of the changes they made.

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

“Our community is very vocal and very loyal, so it would be a mistake if he started tweeting about it because they can be quite vicious when people go against their beloved elf,” he said.

Despite the changes in some companies, Amin also said that CEOs and business leaders he speaks with are still interested in increasing diversity in their companies.

“I think a lot is being made of this whole anti-DEI thing,” he said. “I think more people are committed to a more diverse and inclusive workforce than there are people who aren’t.”

Other companies like Costco and Apple also defend DEI.

Costco’s board recently recommended that its shareholders vote against a proposal from 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 heterosexual.”

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

“A diverse group of associates helps, among other things, bring originality and creativity to our merchandise offerings and promote the ‘treasure hunting’ experience that our customers value,” Costco said in its proxy statement to investors.

Costco “put it well because when the workforce is more diverse, they see better engagement,” Amin said. “It’s the same for us.”