Race-Washing in Advertising: Diversity for Profit or Real Change?

In today’s world, diversity has become a powerful marketing tool. From fashion to tech, companies are showcasing Black and brown faces, mixed-race families, and cultural symbols in their advertising more than ever before. On the surface, this shift seems like a step forward—an acknowledgment of the diverse society we live in. But beneath the glossy campaigns, a deeper issue lurks: race-washing.

Race-washing occurs when brands use diverse faces in their marketing while failing to address racial inequalities within their own workplaces. It’s an insincere attempt to appear inclusive without making any real effort to challenge systemic racism. This tactic is similar to greenwashing (where companies falsely promote themselves as environmentally friendly) and gender-washing (where businesses claim to support gender equality but do little to improve workplace conditions for women).

The key question is: Is this newfound diversity in advertising a reflection of real progress, or is it just another way for companies to profit off the image of inclusion?

The Business of Diversity: Why Companies Are Race-Washing

The rise in race-washing isn’t accidental—it’s strategic. Consumers today expect brands to take a stand on social issues, and diversity sells.

·         A 2023 Nielsen report found that 64% of consumers prefer to buy from brands that promote diversity in their advertising.

·         The Gen Z and millennial markets, in particular, actively support brands that appear to align with their values on race and social justice.

·         The Black buying power in the U.S. alone is estimated at over $1.8 trillion, making it a demographic that businesses are eager to attract.

With these numbers in mind, companies have realized that featuring Black and brown models in campaigns can boost sales. However, true diversity isn’t just about representation in advertisements—it must also exist within hiring practices, pay structures, leadership roles, and company culture. Many brands fail in these areas, making their public commitment to diversity appear hollow.

Race-Washing in Action: When Brands Get It Wrong

Many well-known companies have been accused of race-washing—presenting an inclusive image to the public while maintaining racially discriminatory practices behind the scenes.

1. H&M: The “Coolest Monkey” Controversy

H&M came under fire in 2018 when it released an ad featuring a Black child wearing a hoodie with the words "Coolest Monkey in the Jungle." The backlash was swift, with many accusing the company of racial insensitivity. The incident highlighted a bigger issue:

·         Lack of internal diversity. Critics pointed out that if more Black executives were present in H&M’s leadership, this ad might have never been approved.

·         Performative damage control. H&M issued an apology and hired a diversity consultant, but there was no significant restructuring to improve Black representation at decision-making levels.

This case showed that simply hiring Black models for campaigns doesn’t mean a company understands or values racial inclusivity.

2. L’Oréal: #BlackLivesMatter vs. Firing a Black Activist

In 2020, L’Oréal posted a #BlackLivesMatter message on social media, expressing support for racial justice. However, model and activist Munroe Bergdorf quickly called out the brand’s hypocrisy.

·         Bergdorf, who had previously worked with L’Oréal, was fired in 2017 for speaking out against racism.

·         She accused the company of exploiting Black struggles for profit while silencing Black voices when it wasn’t convenient for them.

After public pressure, L’Oréal rehired Bergdorf and pledged to donate money to racial justice initiatives, but the situation left many questioning the sincerity of corporate activism.

3. The Fashion Industry: More Diverse Faces, But Little Internal Change

High-fashion brands like Gucci, Prada, and Balenciaga have all increased the number of Black and brown models in their campaigns. However, the 2022 Business of Fashion Diversity Report revealed that:

·         85% of top executive roles in the fashion industry were still held by white individuals.

·         Many brands had no Black executives at all despite using Black talent in their advertisements.

This imbalance shows that while companies are happy to profit from Black culture and aesthetics, they often fail to create opportunities for Black professionals within their ranks.

The Hidden Harm of Race-Washing

Race-washing isn’t just about false advertising—it has real consequences. When brands engage in race-washing, they contribute to systemic racism in three key ways:

1. It Creates a False Sense of Progress

By promoting diverse marketing images, brands make it seem like real change is happening. However, if these same companies refuse to pay Black employees fairly, fail to promote them into leadership roles, or do nothing to address workplace discrimination, then diversity is nothing more than a mirage.

2. It Exploits and Alienates Communities of Colour

Black and brown consumers are not just a market demographic—they are real communities with lived experiences of discrimination. When brands tokenize them for profit without addressing deeper issues, it feels like exploitation.

For example:

·         A makeup brand may showcase diverse models in an ad but still offer very few foundation shades for darker skin tones.

·         A sportswear company may sign Black athletes as brand ambassadors but fail to take a stand against racial injustices in the industry.

This kind of performative activism leaves many consumers feeling disrespected and disillusioned.

3. It Distracts from Structural Racism

One of the biggest dangers of race-washing is that it shifts the focus away from real systemic change.

·         A company might appear “inclusive” by running a campaign featuring Black models, but if they still pay white employees more or overlook Black candidates for promotions, they are upholding workplace racism.

·         By focusing on “feel-good” advertising, companies avoid discussions about racial pay gaps, hiring discrimination, and workplace culture.

Race-washing allows businesses to avoid making difficult but necessary changes to dismantle racism within their organizations.

What Needs to Change?

If companies truly want to support diversity, they must go beyond advertising. Here’s what they should be doing instead:

1. Commit to Transparency in Hiring and Pay Equity

·         Companies should publicly release data on racial diversity in hiring, promotions, and pay.

·         Consumers and activists must demand transparency to hold brands accountable for their claims.

2. Diversify Leadership and Decision-Making Roles

·         Representation must go beyond models and marketing—Black and brown professionals should be present in executive roles, creative direction, and boardrooms.

·         Without diverse leadership, companies will continue to make culturally insensitive mistakes.

3. Invest in Communities Beyond Marketing

·         Brands should support scholarships, mentorship programs, and funding for Black-owned businesses.

·         Simply putting a Black face in an ad isn’t enough—companies must invest in creating real opportunities.

4. Call Out Performative Activism

Consumers must become more critical of corporate activism. Before supporting a brand, ask:

·         Do they actually practice what they preach?

·         Have they faced accusations of racism in hiring or workplace culture?

·         Do they have Black and brown executives, not just models in campaigns?

Websites like Glassdoor and independent diversity audits can reveal whether a company truly values inclusion or is simply race-washing for profit.

Final Thoughts: Real Change or Just Marketing?

Diversity in advertising should not be a marketing trend—it should reflect real progress. Representation matters, but only when it is accompanied by real workplace change. If brands truly believe in racial equity, they must prove it through action—not just through carefully curated images.

Consumers have power. By demanding more from brands, supporting businesses that practice real inclusivity, and calling out race-washing, we can push for a world where diversity is not just a selling point—but a standard.