Our thinking

Change or DEI

7 February, 2025

It’s undoubtedly a difficult time for DEI (diversity, equity and inclusion) as we know it. Headlines have been blaring out the details of US companies who are backing down on their commitments, notably including behemoths like Amazon and Meta, with many citing legal and political risks.

The fact that one of the many executive orders Trump signed on inauguration day mandated the end of “illegal discrimination and preferences” in diversity programs looms large in the backdrop, as of course does the Supreme Court ruling on affirmative action in college admissions back in 2023.

However as a recent article in the LA Times eloquently sets out, reports around the death of DEI may be greatly exaggerated. For one thing, the vast majority of DEI programmes are still in place, 486 out of the Fortune 500 currently still have inclusion statements or commitments on their websites, even if they aren’t shouting about them. For another, even those that have publicly backed down are in many cases changing the language and shifting some contentious policies (e.g. quotas), while maintaining a commitment to the overall essence and goals of their practices. It’s a morphing, rather than an abandonment, which isn’t surprising given the many advantages operating an inclusive environment and ensuring you have access to the widest possible pool of talent delivers.

We applaud companies like Apple and CostCo which are publicly standing by their policies. But we also understand the need to react to risks of backlash and legal retribution. It strikes to the heart of a dilemma which we believe businesses will increasingly face in these populist and polarising times: how to adapt and respond, without leaving behind values, principles and actions which hold firm. We hope and believe that this is what we’re seeing beginning to play out across the DEI landscape, and beyond.

By Anna Heis