One of my favorite Taylor Swift songs (yes, I'm a Swifty) is called "Out of the Woods". In the chorus, she repeats the phrases "Are we out of the woods yet?" and "Are we in the clear yet?" These days, I'm asking myself these same questions when in comes to Diversity, Equity & Inclusion (DEI) topics.

I provide DEI consulting to companies, teach a "Diversity & Inclusion at Work" course at UC Irvine business school, speak to dozens of companies on DEI & Bias, and have served on DEI panels for the LA Times, National Diversity Council, and other organizations. So, I've seen these changes first-hand.

Reasons for DEI Pushback/Pullback

In 2020, the murder of George Floyd unleashed a racial justice movement that prompted companies to invest heavily in training and policies that increase opportunity for groups that have historically faced discrimination. DEI mission statements and initiatives were common on many company websites, and the terms belonging, equity, accessibility, and psychological safety became part of our every day conversation.

However, events in the Summer of 2023 changed all that. Here's a brief recap.

Today, amid growing legal, social and political backlash, many American businesses, industry groups and employment professionals are quietly scrubbing DEI from public view—though not necessarily abandoning its practice (more on this below).

You may have witnessed this pullback or pushback at your own company. They've rebranded the term DEI, your leadership team doesn't talk about diversity as a key part of strategy, and your CDO (Chief Diversity Officer) is now working as a Title VII Compliance Officer or Chief Talent Officer.

For example, in March, Starbucks got shareholder approval to replace “representation” goals with “talent” performance for executive bonus incentives. At Molson Coors, “People & Planet” metrics have displaced environmental, social and governance (ESG) goals, and the acronym DEI has disappeared altogether.

What are Companies Really Doing?

Here are 3 recent articles that show that the vast majority of American companies (and companies outside U.S.) have remained steadfast in their committment to DEI practices.

First, this article from the Washington Post shows how companies are responding and evolving. It states that 91% of the 320 executives surveyed said the SCOTUS ruling had not lessened their prioritization of DEI. In fact, 57% said they had expanded their DEI programming in the past year.

Second, here's an article from the Financial Times (you need to subscribe to read full article, but I'll give you a synopsis here). It shows how the DEI push has quietly rolled on despite political backlash. Mentorship programs and cultural celebrations went on like any other year. And of the 194 HR officers polled by The Conference Board, none said they planned to scale back their diversity initiatives in 2024. Most companies seem to be far more worried about how a lack of diversity programming could make it more difficult to recruit and retain staff than getting sued.

Third, research from Chief, the largest private network of women executives, showed in their New Era of Leadership Report that 80% of C-suite executives are still investing in DEI inititives at their company and, despite some paring back, 36% plan to continue their inititives at the same level and 44% plan to ramp up existing inititives or develop new ones.

Is DEI Out of the Woods?

From a policital and legal standpoint, not yet. We still live in politically divided environment where corporate diversity practices (and perceptions) are the subject of frequent social media firestorms. And, of course, it's a Presidential election year.

But in practice, it's business-as-usual for most companies. They may be reassessing their programs and policies to ensure inclusivity for all, but NOT walking away from their DEI committments. That is the important point to remember.

DEI focuses on more than just race/ethnicity. It also includes gender, age, disability, LGBTQ, religion, culture, socio-economic status, and other diverse characteristics. The overall goal of DEI is to help put practices in place so that all employees feel engaged and included, and companies can innovate, compete, and thrive.

This “branding merry-go-round” traces back to the civil rights movement. It's a superficial response driven by current political pressures. Expect DEI language to keep changing in response to public attacks, but know that the important work still continues.

Overall, these new labels won't matter much from a legal perspective. According to the U.S. Equal Employment Opportunity Commission (EEOC), “It remains lawful for employers to implement DEI programs that seek to ensure workers of all backgrounds are afforded equal opportunity in the workplace.”

Parting Thoughts

Instead of giving in to fear of legal exposure or pressure to step back from diversity commitments, corporate leaders should clarify their values around DEI, communicate their goals widely, and ensure their people management processes are aligned with them.

According to a 2023 study by McKinsey & Co., we know that companies with the highest racial, ethnic and gender representation are 39% more likely to financially outperform.

If that's not enough, a 2023 Benevity survey found that 95% of people weigh a prospective employer’s DEI efforts when choosing between job offers with similar salary and benefits - and 78% would NOT consider working for acompany that fails to commit significant resources to DEI initiatives.

The bottom line? DEI efforts ultimately enhance the workplace for everyone.

In my consultation work, I help companies focus on their hiring practices, policies, education & training, communication, employee networks, leadership involvement, and accountability.

If you are interested in helping your company become more diverse, equitable, and inclusive, please don’t hesitate to reach out.

To learn more, you can check out my bestselling book, The Power of Perception: Leadership, Emotional Intelligence, and the Gender Divide or explore my website at drshawnandrews.com.

-Dr. Shawn Andrews