The future of fairness

The shifting DEI landscape

Notable US-headquartered global brands are making significant changes, with Harley-Davidson announcing last August that it had not operated a DEI function since April 2024 and would remove hiring quotas and minority-owned supplier goals.

In parallel, John Deere stated that it would no longer support “social or cultural awareness” events and would review all its training resources. Meanwhile, Ford ceased to participate in the Human Rights Campaign’s Corporate Equality Index.

Last November, Walmart also announced the end of some DEI efforts, including the consideration of gender and race in evaluating companies participating in its supply chain. This was followed by McDonald’s stating that it would halt some DEI initiatives, including goals for diversity within its senior leadership ranks.

In January, Meta (parent company of Facebook and Instagram) announced the termination of several DEI programmes. Meanwhile, Amazon, which has been “winding down outdated programmes and materials” since 2024, deleted content sections titled ‘Equity for Black people’ and ‘LGBTQ+ rights’ from its ‘Our Positions’ web page, which outlines the company’s stance on social and political issues.

The US federal landscape has also been shifting. Within hours of being sworn in, President Trump placed DEI workers on leave, removed DEI measures for federal agencies and contractors, and eliminated DEI in the military. Concurrently, major retailer Target announced that it was discontinuing its diversity initiatives, including renaming its ‘supplier diversity’ team to ‘supplier engagement’.

While one in eight US-headquartered companies say they plan to weaken DEI commitments in 2025, others are remaining strong. Influential CEOs – including (but not limited to) JPMorganChase’s Jamie Dimon, Scale AI’s Alexandr Wang, Pinterest’s Bill Ready and Nasdaq’s Adena Friedman – have reaffirmed their commitment to DEI. Additionally, Costco shareholders voted against ending the company’s DEI efforts.

Arguments for scaling back

Political pressure has seen DEI initiatives framed as promoting a ‘woke’ agenda, leading to some companies abandoning such efforts. For example, Elon Musk posted on social media platform X that “DEI must DIE”, contributing to the anti-DEI narrative.

Economic concerns have also caused some to argue that DEI (and environmental, social and governance) initiatives are costly and do not directly translate to increased profits. The phrase ‘go woke, go broke’ alludes to the legal and reputational risks of ‘doing the right thing’ at the expense of a business’s bottom line.

Critics argue that DEI initiatives can lead to reverse discrimination, with a common concern being that they compromise merit-based hiring practices and lead to hiring under-qualified candidates to meet diversity quotas.

However, these concerns pale in comparison with the list of arguments against scaling back DEI commitments.

Reasons to embrace DEI

Business benefits. Research shows that diverse and inclusive companies are more innovative and successful:

• Companies in the top quartile for gender diversity typically outperform their peers by +25%
• Companies in the top quartile for ethnic diversity typically outperform their peers by +36%
• Inclusive companies earn 2.5 times higher cashflow per employee and are 1.7 times more likely to be leaders in innovation
• Inclusive teams are over 35% more productive and deliver 60% better results – making decisions twice as fast with half as many meetings.

Talent attraction and retention. DEI initiatives can attract top talent and improve employee morale. Companies that close or significantly reduce their DEI functions expose themselves to long-term risks, including:

• Diminished ability to compete for talent, as inclusion and equity are increasingly valued by employees
• Costly levels of employee turnover and increased susceptibility to lawsuits, discrimination incidents and hostile work environment claims
• Reputational damage affecting market position and public sentiment among customers, clients and prospective partners.
  
  
  

“Research shows that diverse and inclusive companies are more successful”

Societal impact. When large corporations actively promote diversity and inclusion, it sends a powerful message and contributes to broader social change. Examples include:

• When Unilever committed to paying all employees a living wage, it prompted other companies to review their wage structures and implement similar policies
• Vodafone’s returners programme, ReConnect, has helped women in 26 countries re-enter the workforce after career breaks and spurred other companies to follow suit
• Lloyds Banking Group’s Black. British. In Business & Proud report has prompted cross-industry collaborations, such as the Channel 4 Black in Business campaign and the Foundervine Immerse Catalyst business accelerator programme
• PepsiCo has shown how to overcome legal data constraints by implementing a global self-ID campaign across 33 countries to support the inclusion of LGBTQI+ employees globally.

Where do we go from here?

While some companies are scaling back their DEI activities, others are innovating to enhance the impact of their commitments. For corporate sustainability professionals, our path forward is clear – we must champion DEI as an integral component of sustainable business practices.

The business case for diversity has never been stronger. Research consistently shows that diverse and inclusive companies outperform their peers, driving innovation and financial success. Moreover, the impact of inclusive corporate initiatives extends far beyond the workplace, contributing to broader social progress.

Our priorities should be to ground our DEI efforts in data-driven approaches that demonstrate long-term value and return on investment, while continuously educating ourselves and our organisations on DEI’s crucial role in building sustainable, resilient businesses.

We must also innovate our strategies and propositions to address intersectionality and respond to evolving societal needs, foster cross-industry collaborations to share best practices and amplify our collective impact, and engage leadership to ensure that DEI remains a strategic priority, integrated into core business operations.

The future of fairness depends on our collective commitment to creating inclusive workplaces where everyone can thrive. We have a unique opportunity to lead this charge. Let’s rise to this challenge, championing DEI as a fundamental pillar of sustainable business in years to come.

Beth Knight FIEMA is a leader in social sustainability and driving transformational change within large multinationals