Diversity, equity and inclusion (DEI) initiatives are facing a growing backlash, with organizations including Ford slashing budgets, disbanding teams and rethinking their strategies. This shift aligns with President-elect Trump’s early Cabinet picks, signaling a rapid move to “advance the anti-trans, anti-DEI, and anti-social justice agenda central to his reelection campaign,” according to Axios.
However, DEI isn’t just about social justice—it’s an essential component of business success, workforce innovation and long-term economic growth. Rolling back DEI initiatives risks entrenching systemic inequities, shrinking talent pipelines and undermining the competitive edge of companies in an increasingly diverse global marketplace. Here’s why:
The Business Case for DEI
In recent years, DEI initiatives have come under increased scrutiny, with some claiming that efforts to promote diversity, equity, and inclusion undermine meritocracy or create division. Furthermore, economic pressures and high-profile decisions—such as the 2023 Supreme Court ruling that ended affirmative action—have intensified this backlash.
Adding to these challenges is a widespread perception that traditional DEI methods, such as repetitive bias training or underfunded employee resource groups (ERGs), fail to deliver meaningful change. As Fast Company has noted, many businesses have approached DEI with a “check-the-box” mentality, focusing on surface-level activities rather than implementing the deeper structural changes required for meaningful transformation.
Moving Beyond Performative DEI
DEI is not just a moral imperative; it is also a business necessity. As Bloomberg highlighted, rolling back DEI risks deepening systemic inequities, further limiting access to economic mobility for marginalised groups and exacerbating existing disparities. These risks underscore why reimagining DEI approaches—not abandoning them—is more critical than ever.
“Diversity is not a cosmetic fix; it requires deep, structural changes in how companies operate,” said Mustafa Özbilgin, a professor of organisational behaviour at Brunel University of London, in an interview with me. This perspective underscores why superficial efforts—such as symbolic appointments or isolated training sessions—fail to create lasting impact. Instead, meaningful DEI requires embedding equity into decision-making processes and addressing systemic barriers.
Traditional DEI models often fall short because they rely on performative measures rather than tackling deeper issues. Özbilgin critiques these superficial approaches in his most recent book, Diversity: A Key Idea for Business and Society. Within it, he highlights how token representation and “check-the-box” exercises do little to address power imbalances, inequality, or intersectionality.
To succeed, firms must move beyond optics. For example, embedding DEI into core business objectives ensures alignment with long-term goals. Companies should also prioritize intersectionality, recognizing that employees face exclusion differently based on overlapping identities like race, gender, and class.
The Risks of Neglecting DEI
Özbilgin’s research demonstrates how organizations can take actionable steps to achieve meaningful progress. One of his projects funded by a $1.25 million EPSRC IGNITE Plus grant examines DEI in the UK energy sector, focusing on how institutional change can create sustainable equity. This sector-wide approach highlights the broader applicability of DEI beyond corporate offices and underscores its potential to address systemic inequities across industries.
Another global study led by Özbilgin explores how DEI leaders navigate backlash in the face of alt-right ideologies. His findings highlight the importance of resilience, adaptability and innovation in sustaining DEI efforts during political and cultural challenges. These studies reinforce the idea that strategic DEI initiatives grounded in structural change are critical for navigating complex environments.
Beyond immediate workplace concerns, Özbilgin argues that organizations need to adopt a more holistic view of diversity. In Diversity: A Key Idea for Business and Society, he calls for integrating ecological and algorithmic diversity alongside human diversity, reflecting the interconnectedness of these domains. This ambitious perspective encourages businesses to think beyond traditional boundaries and consider how their practices affect broader systems including biodiversity and technological innovation.
While some of these ideas may seem abstract, they are deeply tied to the practical challenges and opportunities Özbilgin’s research highlights. Recognizing algorithmic systems as entities with legal accountability, for instance, directly addresses biases in AI technologies—a growing concern across industries. Similarly, prioritizing ecological diversity aligns businesses with sustainability goals, demonstrating how Özbilgin’s holistic framework links structural change to actionable outcomes. By embracing this “new deal,” companies can position themselves as leaders in equity, innovation and resilience.
Failing to adopt such comprehensive approaches to DEI presents significant risks that Özbilgin’s work aims to mitigate. Internally, organizations may suffer from higher turnover rates, reduced employee engagement and missed opportunities for innovation, all of which weaken their capacity for long-term growth. Externally, the absence of a robust DEI strategy can lead to reputational damage, eroded stakeholder trust and diminished competitiveness in a globalized marketplace.
More critically, abandoning DEI initiatives signals tolerance for systemic inequities, a stance that undermines organizational resilience and alienates diverse talent. Özbilgin’s research underscores that businesses unwilling to address these systemic issues risk falling behind in an interconnected world where equity and innovation are increasingly intertwined. For companies committed to thriving in complex environments, neglecting DEI is not just a missed opportunity—it is an existential threat.
Reimagining DEI for Lasting Impact
To succeed, DEI strategies must evolve. Özbilgin emphasizes that meaningful progress requires sustained commitment and a willingness to rethink outdated structures. This involves setting measurable goals, tracking progress, and holding leadership accountable. Firms must move beyond symbolic gestures to achieve tangible outcomes, such as closing pay gaps, increasing representation in leadership roles, and fostering inclusive team cultures.
Leadership development is equally critical. Managers shape workplace culture, and equipping them with the skills to address unconscious bias, navigate complex conversations, and support diverse teams is essential for long-term success. Incorporating intersectionality into these efforts ensures that the unique experiences of employees with intersecting identities are recognized and addressed.
A Call to Evolve, Not Retreat
And so, rolling back DEI programs may seem like an easy solution to immediate challenges, but the long-term consequences are far more damaging. DEI is not a discretionary initiative—it is a necessity for thriving in an increasingly diverse and interconnected world. Companies that fail to prioritize equity and inclusion risk falling behind in the global marketplace, alienating talent, and undermining their potential for growth.
The work of equity and inclusion is challenging, but it remains essential. By addressing the shortcomings of traditional approaches and committing to meaningful change, organizations can position themselves for sustained success. DEI must evolve, not disappear, and the focus should shift from questioning its value to refining its implementation for lasting impact.