Yes, DEI Still Matters—for People and the Economy

Over the past year, a troubling trend has emerged: companies scaling back or outright dismantling their DEI initiatives. Whether due to political pressures, economic uncertainty, or claims of “diversity fatigue,” some organizations are choosing convenience over courage.

This isn’t just a private sector issue. Recent moves to roll back DEI programs within government agencies have added fuel to the debate, signaling a shift that could have far-reaching cultural and economic implications.

But not all are retreating.

Apple recently faced shareholder criticism over its DEI programs but chose to reaffirm its commitment to fostering a diverse and inclusive workplace. Costco has similarly continued to prioritize inclusion as a key business strategy, demonstrating that DEI isn’t just a fleeting trend—it’s a driver of long-term success.

These decisions highlight something essential: leaders who stand firm in their DEI commitments understand that inclusion isn’t just the right thing to do—it’s also good business. DEI fuels innovation, strengthens employee engagement, and enhances a company’s ability to attract top talent in a competitive market.

This week, we’re diving into the rise of anti-DEI sentiment, why some organizations are retreating, and how leaders like Apple and Costco are proving that courage, not convenience, drives meaningful progress.

Three Leadership Lessons from the DEI Divide

1. Leadership Is About Courage, Not Convenience
   Stepping back from DEI might feel like the safer option, but it comes at a cost: trust, innovation, and long-term growth. Companies like Apple and Costco remind us that leadership isn’t about following the crowd—it’s about making decisions that align with your values, even when it’s difficult.

💡 Action step: Reflect on your company’s DEI efforts. Are they aligned with your stated values, or are they at risk of becoming just a checkbox?

2. . DEI Fuels Innovation and Competitive Advantage
   Research consistently shows that diversity drives better business outcomes. Organizations in the top quartile for ethnic and cultural diversity are 36% more likely to achieve above-average profitability, and companies with diverse management teams generate 19% more revenue from innovation. DEI isn’t just ethical—it’s smart business.

💡 Action step: Assess your team’s diversity at every level. Where are you missing critical perspectives that could drive better decisions and outcomes?

3. The Cost of Inaction Is High
   Dismantling DEI initiatives doesn’t make the challenges go away—it only pushes them out of sight. Employees lose trust, disengage, and ultimately leave. Meanwhile, in an age where customers and employees leverage digital platforms to hold organizations accountable, companies risk reputational damage and miss opportunities to attract top talent.

💡 Action step: Take stock of your DEI metrics. Are you retaining diverse talent? Are your inclusion efforts making a measurable impact? Identify one gap to address immediately.

10-Minute Takeaway: Evaluate Your DEI Commitment

This week, set aside 10 minutes to reflect and act on your organization’s commitment to DEI:

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