DEI Is Not a Trend or Toy, It Impacts Lives & It’s Good for Business

The Wall Street Journal recently highlighted that companies that once prominently supported diversity recruitment efforts are now subtly pulling back from these commitments. Amid these widespread reductions of DE&I programs and the removal of diversity goals from annual reports, a critical question arises: Are corporate DEI initiatives and leadership roles still receiving the attention they deserve?

In the face of intense scrutiny, corporate actions are increasingly under the microscope, particularly when it comes to DEI initiatives. However, that doesn’t mean that companies should retreat out of uncertainty or fear of getting it wrong. Abandoning DEI programs, messages, or commitments in response to external pressures not only jeopardizes a company’s reputation but also undermines the progress it has made toward fostering inclusive environments.

In our view, DEI is not a trend but a mandate for progress. Before a company rewinds on its DEI promise, its leaders must consider the role of DEI in safeguarding and advancing these initiatives and the damage reneging on such a promise could have to their internal and external reputation.

Defining the Why

Companies that once dedicated themselves to DEI initiatives need to reflect on the original reasons behind their commitment. There was a problem. Institutional racism and discrimination are hardly ever perpetuated by just one person. It persists when the institution on a higher level does nothing to stop it. It’s hurting America’s economic prosperity and holding us back. Since 1990, racial and ethnic inequalities have drained the U.S. economy of an astonishing $51 trillion.

A Diverse Workforce is a Successful Workforce

The mounting and sustained evidence clearly shows that companies with diverse workforces outperform their less diverse counterparts by an average of 29% annually. McKinsey’s 2023 Diversity Matters Even More report made a compelling business case for diversity. Organizations in the top quartile for ethnic representation now have a 39% higher likelihood of outperforming those in the bottom quartile, a notable increase from 15% in 2015. Companies with executive teams composed of 30% or more women are far more likely to achieve stronger financial performance compared to those with less gender diversity at the leadership level.

The Role of Communications Partners

Leaders must invest in refining communication strategies to articulate their commitment to DEI with clarity and conviction. Communications and marketing professionals are guiding organizations through these challenges by ensuring that their narratives remain consistent, authentic, and aligned with their core values. By doing so, they are enabling companies to maintain their integrity and continue to champion DEI as integral to their business success.

A Way Forward – We All Have a Role to Play

In this critical moment, business leaders, marketing and communications partners, shareholders, board members, and employees must unite in rejecting any efforts to dismantle DEI programs and initiatives. It is our collective responsibility to ensure that the progress made toward creating inclusive and equitable environments is not undone.

Business leaders should not forget the importance of tracking progress to ensure ongoing commitment to improvement and address common objections or misconceptions about DEI programs and provide evidence or rationale to counter these views.

Communication and marketing professionals should encourage organizations to continue measuring the success of their DEI initiatives and inspire others in their industry to do the same.

Shareholders can continue to advocate for DEI policies by using their voting power to support resolutions that promote DEI practices and policies within the company. They can increase engagement with leadership and push for transparency and accountability by holding frequent discussions with the company’s leadership about their DEI strategies and performance.

Board members must continue ensuring that DEI is a key agenda item in board meetings and that there are clear goals and accountability for DEI initiatives by advocating for and overseeing the recruitment of diverse talent at all levels, including senior leadership and board positions.

Employees should remain undaunted and actively support company-wide initiatives that foster an inclusive and respectful workplace. If they haven’t already, they should provide constructive feedback on DEI practices, propose improvements, and address any concerns. Their engagement is vital in driving meaningful progress.

Meeting the Moment

At a time when DEI has become increasingly politicized and trivialized, companies must stay true to their core values and not be swayed by external distractions. Rather than deviating from their DEI missions, companies should take this moment to reconnect with their foundational principles and ensure that their messaging remains consistent and authentic. By cutting through the noise and focusing on what truly defines the company, they can move forward leading with integrity and demonstrating a steadfast commitment to creating inclusive and equitable environments. Staying rooted in their ethos will not only strengthen their identity but also build lasting trust with their audiences.

By standing firm in their commitment to DEI, companies can safeguard the integrity of their organizations, drive sustainable business growth, and contribute to a more just and prosperous society. The time to act is now—embrace and champion the principles of diversity, equity, and inclusion as non-negotiable pillars of success.

By Ro Thompson

Photo by Roberto Vivancos via Pexels