What Should Businesses Do About DEI Now?

Photo by iStock/Jordan Feeg

In only a few short weeks, the landscape for advancing diversity, equity, and inclusion (DEI) in American government and business has turned upside down. The Trump administration has sought to cast aside basic principles of civil and human rights without changing a single law, and their success so far has turned on fear, bullying, and misinformation to achieve one thing: preemptive compliance.

This strategy was exemplified in the president’s January executive order that seeks to end all DEI-related programs, policies, and guidance within the federal government. Additionally, despite being outside of the executive’s purview, the administration has struck widespread fear and confusion across the private sector through another executive order “encouraging” businesses to end entirely lawful anti-discrimination practices, characterizing DEI as inherently illegal.

The United States’ civil rights laws, including the Civil Rights Act of 1964, have not changed. Advancing diversity, equity, and inclusion remain critical pathways for all institutions, especially businesses, to combat discrimination and to foster meritocratic workplaces where everyone has a fair shot to succeed through their own hard work.

While the executive orders have been challenged in court, the administration’s actions threaten to turn back the clock and instill a new climate of fear and uncertainty around smart business practices and the movement for equitable capitalism more broadly. Some companies, like Costco and e.l.f. Beauty, are choosing to remain vocal in their commitment to DEI, while others, like Meta, are walking away from their previous commitments to workers and communities. Other companies, like McDonald’s, are announcing how they are evolving their practices, perhaps in an attempt to stay out of the administration’s crosshairs, but there is no way they can entirely avoid public scrutiny.

As the politicization of what should be apolitical anti-discrimination practices grows, the stakes for workers, consumers, investors, and communities have never been higher. Advancing equity—which simply means fairness—remains a superior growth model, and overlooking or restricting equitable approaches based on political or ideological agendas will limit the potential of our economy. Equitable growth has shown dividends, creating jobs and improving communities. CEOs believe that equity-driven practices remain critical for their businesses, and the policies remain overwhelmingly popular. Undoing this progress will hurt businesses, the customers they serve, and the communities they operate within.

Companies should be aware of potential challenges, and should continue to focus on structuring all programs, including diversity, equity, and inclusion programs, within existing legal frameworks. That means employers must still comply with laws that mandate nondiscrimination, such as Title VII, Section 1981, and the Americans With Disabilities Act. Many fundamental diversity, equity, and inclusion practices help organizations do just that: comply with those laws.

Organizations that adapt strategically to continue to fulfill these goals can not only mitigate risks but also unlock opportunities to thrive in a rapidly changing landscape.

Navigating the Current Climate to Do Well by Doing Good

We have repeatedly seen how businesses benefit from committing to equitable impact within their organizations. We are also seeing how businesses can navigate the current landscape, continue their work and, in some cases, double-down on their equitable investments. If you are a business or other organization looking to manage the current climate, here are four strategic considerations to apply to continue to do well by doing good.

Connect All Efforts to Business Strategy

Much of the anti-DEI rhetoric is just that: rhetoric. When digging deeper, it becomes clear that policies to advance diversity, equity, and inclusion directly meet business goals. Everyone committed to an equitable approach to capitalism should not lose sight of this truth.

For example, despite political rhetoric, practices like the H1-B visa program have consistently shown how equity-driven approaches fuel innovation, broaden access to global talent, and drive revenue growth. Highlighting measurable outcomes from similar initiatives can demonstrate value to stakeholders. Do not take the bait on the politicization of smart business practices, rely on the substance of the argument instead.

Review the measurable business outcomes of current equity policies. Develop a clear narrative and supporting data that connects these outcomes—such as employee retention, increased productivity, customer loyalty, and broader market reach—directly to equity efforts. Use this narrative to gain buy-in from leadership and protect your work.

Review Communications

Diversity, equity, and inclusion initiatives remain legal. However, we know there are anti-DEI activists searching for trigger words to find their next target. Conducting a risk assessment and carefully considering all communications are key. However, ensure risk is considered holistically.

For example, before making pronouncements about new acronyms or program names, consider the risk of alienating current and prospective workers, consumers, and investors. For many companies, this is arguably more important than the small outside potential of a nuisance lawsuit that may not hold water. Companies should continue their employee inclusion programs and cast the talent net wide because it simply makes good business sense. Doing so helps recruit the best talent, foster happy employees, increase retention, and tap into new labor markets.

Where it makes sense to refine language, the goal should be to connect your efforts to business priorities rather than leaning on euphemistic buzzwords. For example, McDonald’s was recently in the news for seemingly backtracking on equity, but in reality, it announced its successes to date, affirmed its ongoing commitments, and shared how it is evolving its efforts, including updating its language from “diversity” to “inclusion.” Reframing language and evolving company efforts does not always mean a company is compromising on equity goals.

Given the administration and other anti-DEI actors are already aware of such efforts and explicitly calling them out, spending a significant amount of time trying to dress up the work differently may not be the highest and best use of resources. Instead, invest in gaining the buy-in for standing firm in the company’s efforts and
being ready with appropriate communications if the company faces any attacks.

Audit Company Practices

A review of company operations should not stop at public-facing language. Instead, all company practices can be reviewed and analyzed. Conducting this type of thorough audit not only mitigates legal and reputational risks but also identifies untapped opportunities to strengthen the business.

Tools like the PolicyLink’s Civil Rights Audits Standards can help pinpoint gaps in equity practices and guide improvements. For instance, assessing hiring, promotion, and supplier policies may reveal areas to attract broader talent pools, deepen customer loyalty, and strengthen investor confidence.

Start by evaluating key organizational practices—such as hiring processes, pay equity, and supplier diversity—to identify gaps in anti-discrimination practices and opportunities for greater business resilience in line with what corporate stakeholders want: workplaces that are meritocratic and welcoming to all, inclusive products with broad reach, and steady business leadership focused on the long term.

Join Forces

Companies do not have to do this work alone. There are other like-minded institutions with similar values that are ready and willing to support and collaborate to weather this storm together. Some companies—like Ben & Jerry’s—are willing to be vocal about their commitments, and they can speak up or speak out in a way that your company might not be able to. These vocal leaders can support those that are not as comfortable being out front on the issues.

Organizations can join or form coalitions like the Freedom Economy to pool resources and reduce risk. Coalition peers can share strategies and provide a united front for organizations that want to continue to be more public about equity, while decreasing the likelihood of navigating any attacks alone.

Proactively evaluate current and prospective partners and identify opportunities for collective advocacy. Consider cross-sector collaborations with nonprofits, local government, trade groups, professional associations, or other businesses to bolster credibility.

Diversity, equity, and inclusion remain smart business strategies. By doubling down on the business case, reviewing communications, auditing practices, and forming coalitions, organizations can not only weather these challenges but emerge stronger, more innovative, and better aligned with a rapidly diversifying world.

The next several years will undoubtedly bring more challenges, but they also offer an opportunity for organizations to lead with courage, resilience, and innovation. Those who do will emerge with a distinct competitive advantage for years to come. Those who instead are quick to follow political winds will experience blowback and will likely struggle to rebuild trust with workers, customers, communities, and investors.

Read more stories by Tynesia Boyea-Robinson & Mahlet Getachew.