In recent months, Diversity, Equity and Inclusion (DEI) has faced a strong pushback in many companies, especially in the United States, due to increasing political and economic pressure. 🔙
Companies that were previously leaders in this area have reduced investments or eliminated inclusion programs to avoid controversy in an environment where " woke " is perceived as a business risk. However, this short-term approach can have significant negative effects on employability, productivity and business sustainability.
📉The current context: pressure against DEI
The term " woke " originated in African-American communities and refers to awareness of social injustice and discrimination . However, in current discourse, it has been used by certain political sectors to discredit progressive initiatives, including diversity and inclusion programs.
Companies like Amazon, McDonald's, Walmart, Disney, and Starbucks have all adjusted their DEI strategies or cut budgets in response to criticism from conservative quarters and policies aligned with Trump's agenda. There's also been a broader movement against ESG [1] ( environmental, social, and governance ) initiatives 🌱, which often include inclusion as a key pillar.
In some cases, the pressure comes from legislators and investor groups seeking to eliminate diversity programs arguing that they create inequalities or affect financial performance. This was already happening before, as is the case of Fearless Fund [2] , an investment fund 💰 focused on black women entrepreneurs, which faces lawsuits seeking to stop this type of initiatives.
And Jane Fonda said it very clearly at the Screen Actor Guilds Award in 2025:
"Make no mistake, empathy is not weak or woke. And, by the way, 'woke' just means you give a damn about other people" [3] .
🚀 Negative impact of reducing DEI efforts
While some companies are bowing to political pressure, data shows that diversity remains a key strategic asset. Cutting back on DEI can have detrimental effects on several fronts:
👥Employability and talent attraction: New generations of talent are looking for diverse and inclusive environments. A McKinsey study indicates that companies with greater diversity in leadership are 36% more likely to outperform their competitors in profitability . [4]
😃 Employee Satisfaction and Retention: While according to a Deloitte report, 83% of employees in inclusive companies report greater job satisfaction , which reduces turnover and improves productivity. [5]
💡 Productivity and engagement: Diverse teams perform better, have greater creativity, and more effective problem solving. Companies that reduce DEI may see a drop in employee morale and an increase in turnover.
📈Better financial results: A focus on human sustainability helps organizations reap the benefits of greater diversity, equity, and inclusion. Organizations with greater diversity are 2.4 times more likely to financially outperform their competitors [6] .
🏆Reputation and consumer loyalty: A setback in DEI can lead to boycotts or rejection by consumers committed to inclusion values, directly impacting sales and brand perception.
In the words of Alicia Keys at the 2025 Grammys:
"This is not the time to shut down the diversity of voices (…) DEI is not a threat, it's a gift." [7]
💪Companies that have stood firm in the face of the backlash
Despite the pressure, some companies have resisted the backlash on DEI thanks to the support of their own shareholders and strategic leaders.
Apple: This year, some investors attempted to pressure the company to scale back its diversity initiatives. However, the majority of shareholders voted against eliminating these efforts, reaffirming the company's commitment to inclusion. [8]
Costco: In a similar context, shareholders rejected a proposal to reduce DEI programs, arguing that diversity is critical to the company's long-term success . [9]
Microsoft: While there have been some cuts, the company has strengthened its diversity programs and continues to invest in initiatives that foster inclusion in technology.
Patagonia: Maintains its commitment to equity , not only in terms of environmental sustainability, but also in social inclusion.
Ben & Jerry's: Continues to promote social justice causes, despite political and commercial pressure against it.
These examples – and these other 45 multinationals – 🏢 demonstrate that when diversity is integrated as a strategic pillar of the business, it is possible to defend it even in times of political and social uncertainty.
How businesses can stay resilient
For those organizations that wish to continue their DEI efforts without exposing themselves to unnecessary controversy, some key strategies include:
✅ Anchor DEI to business objectives: Ensure that diversity is aligned with business strategy and values and is not seen as an isolated or secondary area.
📊 Focus on tangible metrics and results: Show how diversity impacts profitability, productivity and talent retention with concrete data.
🗣️Reframe the narrative: Present DEI as a talent and competitiveness strategy, rather than a political or ideological issue.
Back to basics: Re-training and coaching from the basics, the advantages of DEI, biases, privileges, allies and, above all, bringing to the table real testimonies from our company's staff or social actors.
🏛️Strengthen internal governance: Enlist the support of management and shareholders to sustain the commitment to inclusion in the long term.
🔄 Evolve without abandoning values: Adjust the DEI approach without giving up the fundamental principles of equity and diversity, always seeking to innovate in the way these strategies are implemented.
Conclusion 🎯
The pushback on DEI is a political and economic backlash to a movement that has proven to be beneficial for businesses. Those that understand its strategic value should not abandon these efforts, but rather find ways to reinforce them with data, effective narratives, and a clear business focus.
In the long term, diversity will continue to be a competitive advantage and a business necessity .
🌟 In times of pressure, resilient companies do not give up on inclusion: they integrate it as a fundamental part of their success.
In times of uncertainty, we can only light up hope and keep encouraging ourselves to Come Out! 🚪🌈
The Future of Inclusion and Corporate Resilience
The Future of Inclusion and Corporate Resilience
[1] ESG: Environmental, Social and Governance
[3] Make no mistake, empathy is not weakness or conscience. And by the way, "conscience" just means that you care about others.
[4] https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/delivering-through-diversity
[7] “ This is not the time to silence the diversity of voices (…) DEI is not a threat, it is a gift”