Despite Political Firestorm, Diversity Investments Are Alive And Well
As the WSJ has reported extensively, companies like Harley Davidson, Tractor Supply, Walmart, and McDonalds are publicly pulling back on DEI programs, largely under pressure by political activists. Fueled by the supreme court’s striking down of affirmative action in 2023, there is a political movement to dismantle the “social justice” movement that took hold in corporate HR departments.
New News: Apple and Microsoft urge shareholders to vote against anti-DEI initiatives and Costco, JPM Chase, Salesforce, Delta, and other important brands are publicly promoting their inclusion programs.
Despite this, the new administration is asking the Federal Government to “end radical and wasteful” government DEI programs. And the executive order is asking the Justice Department to litigate up to 9 private companies as examples.
As a part of this plan, each agency shall identify up to nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more, State and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars.
Of course this has created a firestorm of debate, and many companies are doing away with dedicated DEI roles in HR. But our research, which includes discussions with many dozens of Chief HR Officers, heads of recruitment, and others, finds that the investments are alive and well.
Here’s where I sense we are.
While DEI and pay equity programs have been around since the 1960s (companies like Coca Cola and Google have been sued for gender and racial pay inequities), the topic got out of hand.
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Post George Floyd, which was a traumatic event in the United States, companies went overboard with training and messaging about social justice, oppression, micro-aggression, and other uncomfortable topics. Many programs included discussions of topics like “white fragility,” “intersectionality,” “oppression,” and other social topics.
While this was trending in the media, many employees told us these programs made them uncomfortable. In a country like the United States (I just got back from two weeks in South Africa, where these issues are front and center) where we have a long history of immigration and diversity, this topic has been debated for hundreds of years.
I worked at IBM during the days of affirmative action (1970s and 1980s) and my personal experience was very positive. Black and Asian professionals were actively recruited and promoted at IBM during my tenure and I have fond memories of IBM as a company with a powerful culture of “respect for the individual” (IBM’s motto).
(Read Thomas Watson’s 1963 manifesto: it’s a bit gender-biased but remains relevant today. Watson, the founder of IBM, talks extensively about equity between white and blue collar work, fair wages and benefits, and opportunities for all. Note that IBM is one of the only tech companies that has survived more than 100 years so these principles have served the company well.)
Now that we’ve entered a business focus on productivity, AI, and technology transformation, companies want to build a culture of meritocracy, skills, leadership, and internal mobility. The #1 issue we hear from CHROs and CEOs is “how do we transform our company faster?” Sitting around to debate diversity targets or DEI agendas just doesn’t feel important.
That said, as we discuss regularly with leaders in every industry, CEOs and CHROs are very concerned about corporate culture.
The new Edelman Trust Barometer describes a shocking drop in trust among workers. More than half of all employees believe CEOs are overpaid and 68% believe they lie on a regular basis. So cultural topics of inclusion, fairness, and respect are extremely important. (The Edelman research even points out that 40% employees believe that hostile activism against their employer is acceptable (violence, property damage, social media attacks).
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So building a culture of trust, transparency, and listening remains essential. And that’s why culture still matters.
As I discuss in our research “The Rise of the Superworker,” (and PwC’s 2025 CEO survey also points this out), companies that transform faster make more money. And transformation, regardless of the technology behind it, is always dependent on people. So when we read about corporate transformations at companies like Boeing, Intel, and Nike, we know that there are always issues of culture.
Where does the DEI agenda now fit? As I talk with leaders around the world, it has clearly not gone away. Today, rather than focus on representation targets or social issues, companies are embedding their focus on meritocracy within the business, moving it out of the world of an “HR program.” And this, despite the political backlash, is a good thing.
As even Robby Starbuck points out, every leader believes in meritocracy. We want our teams to reward high performance and encourage everyone to learn, grow, and advance in a fair way. DEI, which became a standalone mission of its own, is now a part of “building a culture of performance,” and that means respecting high performance among all genders, races, disabilities, and ages. It means creating a culture of psychological safety where people can speak up, and it means being crystal clear with feedback, accountability, and behaviors we value.
Finally, let me celebrate the public statement by Jamie Dimon, one of the most respected CEOs in the world. When asked about DEI activists at the World Economic Forum, he answered “bring them on, we’re proud of what we do.”
While much of the political focus against DEI seems to focus on “moving companies to the right,” I think the real trend is quite different. Leaders and HR departments are taking the high-profile DEI agenda and embedding it into the disciplines of leadership, recruitment, performance management, and rewards. And even today, as Lightcast data shows, there are more than 7,000 DEI roles posted for hire.
The highest performing companies in the world are inclusive and fair by nature – that’s why high-performers want to work there. Let’s let “DEI” as an HR agenda move aside, and move the topic back into the business of leadership where it belongs. (Listen to real-world case studies in The Josh Bersin Academy or browse all our DEI research in Galileo.)
Additional Information
The Rise Of The Superworker: Delivering On The Promise of AI
Elevating Equity: Comprehensive Certificate Program in The Josh Bersin Academy
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