DEI Is Not Dead
Donald Trump and the MAGA-messaging media would have you believe that Diversity, Equity, and Inclusion (DEI) is dead — and that everyone is in a race to dismantle their DEI programs as swiftly as possible.
That is not the case.
While every news cycle seems to carry a new headline about a rollback of DEI efforts by another brand, institution, or organization, as always, things are more complicated than they (are made to) appear.
(Read Ezra Klein’s opinion piece from the start of Trump 2.0: Don’t believe everything you read.)
The data tells a different story
True, sustained DEI work isn’t about following trends but responding to real demographic shifts and workplace needs.
The conservative Heritage Foundation recently admitted that 486 of the Fortune 500 still have inclusion statements or commitments on their websites.
As we move past the 100-day mark of the second Trump administration, we can see further examples of ongoing DEI commitment, supported by independent surveys.
It does not take much investigative effort to find that while some companies enact worrisome roll-backs, many organizations are simply cloaking their DEI efforts in new packaging.
Some companies are dropping the acronym DEI and replacing it with words such as "belonging" (which has always belonged (ha!) in the DEI sphere to begin with). Target, for example, has replaced its DEI strategy with a new one called "Belonging at the Bullseye". Others, such as Google, Intel, or Goldman Sachs, have deleted references to DEI from annual reports or company websites, sometimes integrating existing initiatives into the ESG or CSR space.
Let’s be clear, organizations have begun taking real action, scrapping important programs and ambitious goals, such as hiring targets for underrepresented employees or executive committees focused on racial justice. I don’t want to minimize the harm caused by these DEI commitments being eliminated.
It remains to be seen, however, how successful these organizations will be in the long run.
Demographics Don’t Lie
Despite ongoing political efforts by Trump (and Orban, Putin, Meloni, and most recently the UK's Supreme Court) to deny the existence of trans and queer people, demographic data shows increasing diversity in gender identity and sexual orientation. Nearly 30% of Gen Z adults identify as LGBTQ. This generation is also more ethnically and racially diverse than its predecessors.
This means that a significant portion of the future workforce and current young professionals have specific needs that often go unmet due to the homogeneous makeup of many organizations today, and their lack of inclusive workplace cultures capable of supporting the varied needs of a pluralistic workforce.
Queer and Trans people have always existed and will continue to do so. The same is true for Black people, Indigenous peoples, People of Color, Immigrants, disabled and neurodivergent people, or working parents.
These communities experience systemic and structural discrimination in the workplace (and the world writ large), which DEI programs are intended to address and remedy.
Not to mention the immense financial power that these communities have.
According to Credit Suisse, the purchasing power of LGBT folks reaches up to $6 trillion. The (US) National LGBT Chamber of Commerce estimates that LGBT+ owned businesses contribute $1.7 trillion to the U.S. economy annually.
Similarly, Black Americans are expected to have a buying power of $2 trillion by 2026, up from $1.7 trillion in 2024.
Companies scrapping DEI efforts to appease an unreliable and erratic administration, which has declared DEI “illegal” and an “enemy”, are trading the illusion of security for the significant risk of alienating a powerful consumer base and potential talent.
Demographic change is not temporary. It is real and cannot be ignored or argued away.
“Corporate America’s efforts to promote diversity, equity and inclusion arose to address real challenges, and those will only intensify in the years ahead. […] And that points to why diversity initiatives have persisted for decades now in corporate America: They pay off.” — LA Times Opinion (Feb 3, 2025): Corporate America isn’t abandoning DEI — it’s just rebranding it
People care what companies do — as employees, and as consumers
The business case for DEI is complicated. This is why it was not very helpful to begin with.
(Defending Democracy: Beyond the Business Case for DEI)
Grounding the value of DEI in a business case pits short-term shareholder interests, focused on quarterly profits, against the inherently longer-term outlook of expanding human rights and dignified working conditions.
Appeasement for fear of losing government contracts is the enactment of the fear of losing money — prioritizing the extraction of labor for profit over the sense of belonging and well-being of the workers generating the profits.
But what about the money (and power) in consumer choices?
(Why Companies Must Focus On Customer Needs)
The costs of finding and training new employees to fill growing talent gaps?
Or the financial impact when public opinion turns negative and stock prices tumble?
Abandoning the goals of diversity, equity, and inclusion creates new and significant risks to organizations and brands that need to be mitigated.
Not least of which are compliance risks for global brands who need to uphold DEI-related policies in regions other than the U.S., such as EU regulations around equal pay, supply chain diversity or disability access (this area alone is significant enough that it merits the space of a fully separate additional article)
The power of public opinion
After Target scaled back its DEI efforts, its numbers declined significantly. The decision sparked online customer protests and offline customer “buy-cotts”. Anne and Lucy Dayton, daughters of Target's co-founder, denounced the company's actions as "a betrayal."
Meanwhile, Costco saw a rise in profits as customers deliberately rewarded the company for maintaining its DEI commitments.
The contrast was stark: Costco gained over 7 million shoppers during a 4-week period, while Target lost nearly 5 million. Target's foot traffic declined for 10 consecutive weeks—showing a 9% drop year-over-year in February and 6.5% in March, according to data from analytics firm Placer.ai.
“The blowback to Target’s DEI moves represents a significant challenge to its business and highlights the risks of companies abruptly moving away from diversity initiatives that still enjoy support on the left.” — Target rolled back DEI efforts. A boycott ensued — and traffic dropped | CNN Business
The story of Tesla’s financial downturn is further evidence of the power of public opinion and protest: Tesla’s stock has taken a massive hit since Elon Musk joined the U.S. government. The car manufacturer’s identity and value are inexorably tied to Musk, whose actions in the (shadow) government have angered millions, causing people to feel ashamed to own a Tesla-made vehicle.
Recognizing the folly in turning their back on DEI commitment, the French government recently repelled a Trump administration demand for French companies to scrap DEI programs (as reported by The Associated Press.)
“Diversity and inclusion are not just buzzwords, but the foundations of a strong and dynamic society,” they said. “They strengthen our economy, foster innovation, and allow talent to flourish.” — Joint statement from French Foreign Minister & Equal Opportunities Minister
The France-based luxury giant LVMH, for example, affirmed that in their view, Diversity and Inclusion Drives Business Success, stating: “LVMH views diversity, inclusion as source of creativity and performance.” - Sustainability Magazine
Important is not the acronym, but the action
What matters in the end is not what acronym or keyword appears on a company’s website or in an annual report. What matters are the actions taken (or not taken), and the values and aspirations driving those actions.
If inclusivity is a true value, then people systematically being excluded, passed over, or harmed by the systems and practices in our (work)spaces still matter. Even if the word ‘inclusion’ is not boldly written anywhere.
If kindness is a true value, then we still need to agree on behavioral expectations clearly outlining how we want to relate to and treat one another; ensuring that everyone involved has a chance to know what meeting those expectations looks like in all situations (whether that’s a hiring interview, a performance review meeting, or a collaboration workshop –, and take informed action when those expectations are not being met.
If diversity is a true value, then we must continue to invest resources to ensure that people of all backgrounds can be represented and thrive at every level of the organization, and that barriers blocking this goal are systematically addressed.
(For more practical details, read: 14 ways to put belonging into practice)
Do not obey in advance.
Part of the “shock and awe” strategy, employed by the Trump administration and similar authoritarian populists, is to create a “chilling effect”: making people afraid of negative consequences and therefore causing them to obey in advance.
The deportations of students from college campuses are an example of this strategy at work. After the deportation of Mahmoud Khalil and the arrest of students by DHS officers in the streets, others who have been served with unlawful deportation charges have chosen to “self-deport” (i.e. flee the country voluntarily) instead of fighting their unlawful deportation orders.
The roll-back of DEI efforts out of fear of losing government contracts or facing legal ramifications — before the alleged illegality of DEI initiatives has been litigated, much less settled by the courts — is another consequence of the chilling effect, if you ask me.
In times like these, individuals think ahead about what a more repressive government will want, and then offer themselves without being asked. A citizen who adapts in this way is teaching power what it can do.” — Timothy Snyder: “On Tyranny”
Places of work — whether they be companies, universities, or other institutions — face the choice of obeying in advance with a directive to cut DEI initiatives whose lawfulness is still under investigation; Or stay their ground and continue to invest in the flourishing of the humans who work for them.
The majority of people want to work in a place where they feel valued, treated fairly, and have opportunities to advance.
DEI is not dead — it’s evolving
Instead of giving in to fear-based attacks and impulses, we should seize the opportunity inherent in this moment.
A unique opportunity to show the world that we take our values seriously — Defending democratic ideals and humanistic values.
Human beings have the capacity to come together in moments of chaos and catastrophe.
(Read Rebecca Solnit: Hope in the Dark, for a beautiful account of this human capacity.)
Let us resist the impulse to turn against, and instead turn towards each other.
Let’s continue shaping our (working) world into one where everybody can access opportunity and participate with dignity. One we can be proud to leave for future generations.
A world where difference is valued, divides are skillfully bridged, and where every single person can feel a sense of belonging.
This world is possible.
The option is open to us.
But we have to choose it.