Is diversity, equity, and inclusion at risk of global rollback?

When the Black Lives Matter movement gained global attention following the murder of George Floyd in 2020, corporations were quick to publicly state their allegiance to the cause.  

A McDonald’s ad listed the names of several Black people killed in acts of violence, swiftly followed by an “Amplifying Black Voices” campaign. Elizabeth Campbell, the senior director for cultural engagement strategy for McDonald’s at the time, said: “McDonald’s wanted to be part of the solution… not part of the problem.” 

Walmart CEO Doug McMillon made a similar commitment. “To influence and lead change, we are going to use the power of Walmart to invest resources and develop strategies to increase fairness, equity, and justice in aspects of everyday life,” he pledged.  

An Amazon editorial honoring Juneteenth celebrations in 2020 also committed to “helping build a country and a world where everyone can live with dignity and free from fear”, and the company donated $10 million to organizations working towards social justice and equity. 

Setback on DEI

Before Black Lives Matter, #MeToo and global reporting on the gender pay gap had highlighted the continued discrepancies in gender equality. The increased urgency surrounding climate change, a heightened awareness of gender identity and the growing influence of socially aware Gen Z employees in the workplace have all contributed to an acceptance and expectation — of diversity, equity and inclusion (DEI) policies. 

Instead of building bridges, DEI policies often have been perceived as ideological impositions or forced culture changes

But by the time President Trump issued an executive order to end “Radical And Wasteful Government DEI Programs And Preferencing” on 20 January — the day of his inauguration — McDonald’s, Walmart and Amazon had already abandoned the commitments they made five years previously.  

As reported by AP in November, Walmart had joined “a growing list of major corporations” that had bowed to pressure from conservative activists. By 6 January, McDonald’s said it was “retiring setting aspirational representation goals” along with its “Supply Chain’s Mutual Commitment to DEI pledge”. Four days later, CNBC reported that Amazon had issued an internal memo announcing it would wind down many of its diversity and inclusion initiatives.  

Using DEI policies wisely

Although companies including Apple, Costco, Microsoft and JPMorgan continue to advocate for the value of DEI policies, all signs point to a significant rollback in the coming year.  

“With Trump leading the narrative, DEI policies are under attack both in public administration and the private sector,” says Patricia Cauqui, academic director of the LEAP Women and Sustainability Program and codirector of the Esade Gender Monitor. 

“Diversity, Equity, and Inclusion policies are essential because they address historical inequalities and persistent realities of exclusion,” Cauqui points out. But rather than reflecting an abandonment of the issues they were intended to address, she suggests the problem is the way in which they were implemented.  

When managed wisely, DEI policies strengthen innovation, improve organizational performance and attract global talent

“Often, instead of building bridges, they’ve been perceived as ideological impositions, or forced culture changes,” she explains. “This has led to pushback — not because diversity is unimportant, but because the approach has, at times, lost connection with the very people it aims to unite.” 

The pendulum swing observed today, Cauqui continues, doesn’t necessarily question the need for equity. Rather, it critiques the lack of sensitivity in how previous policies were applied. And as the controversy surrounding Trump’s executive order intensifies global debate, “the challenge lies in redirecting them toward what truly works: solving concrete problems, clearly communicating their benefits, and fostering consensus instead of division.” 

An uneven global landscape

“Discarding DEI policies because they have been poorly implemented is like discarding a tool because someone used it incorrectly,” Cauqui says. “Companies like Apple and Costco have shown that, when managed wisely, these policies not only strengthen innovation but also improve organizational performance and create workplaces that attract global talent. 

With the furore mainly concentrated in the US so far, the outlook in Europe remains uncertain. Strict EU regulations prohibit any discrimination on the grounds of race and ethnic origin and at work, and set out the requirements for equal treatment in employment and the supply of goods and services.  

In regions with less regulatory oversight, progress on DEI will depend on how their impact on competitiveness is valued

However, despite the regulations, Cauqui warns the accumulation of economic and strategic challenges and the unfavorable growth compared to other regions may limit Europe’s capacity to make positive progress. “At least, Europe may retain a foundation for these policies, driven by its regulatory and cultural framework,” she claims. 

This picture is uneven in the rest of the world, where progress will be shaped more by social pressure and corporate leadership than regulations. “In emerging markets, multinational corporations and private initiatives will be key to integrating these policies," Cauqui points out “In regions with less regulatory oversight, their progress will depend on how their impact on competitiveness is valued.” 

Benefits of DEI for companies

The best solution for companies, Cauqui suggests, is to approach DEI policies as a reflection on the customers they serve in an increasingly globalized and diverse society. 

“These policies are a strategic resource,” she advises. “A diverse workforce generates unique perspectives, fosters creativity and enables organizations to compete in increasingly complex markets. 

“We must also look to the future. We’re on the brink of a technological revolution driven by AI. When machines take on a more prominent role, perhaps — more than ever— humanity and its diversity will be the differentiating factor in the face of automation.”