In January 2024, after a Boeing plane door malfunctioned mid-flight, Elon Musk and Donald Trump Jr. wasted no time pointing fingers. They didn’t blame software errors or the faulty flight-control system. They singled out the company’s diversity, equity and inclusion policies, with Musk tweeting, “Do you want to fly in a plane where they prioritized DEI hiring over your safety?” It wasn’t just a jab; it was a rallying cry for a broader movement aimed at undermining inclusion in every corner of corporate America.
By early summer, conservative activists were targeting companies like Tractor Supply and John Deere for supporting Pride festivities and climate policies, pressuring them to roll back DEI initiatives. A domino effect followed: Harley-Davidson, Lowe’s, Ford, Toyota and Molson Coors pulled back as well. By November, Boeing had dissolved its global DEI department entirely.
This retreat comes as U.S. President Donald Trump begins his second term, and he’s made his intentions on the topic clear: to purge DEI programs from federal agencies, calling them “anti-white racism." With the 2023 Supreme Court’s decision to strike down affirmative action in U.S. colleges already fuelling anxieties, companies are bracing for what’s to come.
The rise and fall of DEI programs
As quickly as corporate DEI policies rose to prominence, the scaffolding of modern, resilient leadership has started fraying at the seams. What was once a surge of commitment to equity is now under relentless attack, and the stakes couldn’t be higher.
It’s a sharp pivot from 2020, a year when DEI surged into the corporate spotlight. Following the murder of George Floyd at the hands of Minneapolis police, the Black Lives Matter movement reignited a global reckoning on racial injustice. Alongside the rise of the #MeToo movement, companies across industries made bold commitments to equity. DEI roles were created at record levels, boards diversified, and women and racialized leaders began stepping into long-overdue positions of power.
For many DEI professionals, the promise of change faded fast. As one former DEI executive in a communications agency tells Corporate Knights, asking not to be named,“We were hired to lead change, but it quickly became clear that leadership wanted optics, not transformation. You can’t drive systemic change when you’re treated like a checkbox.”
This performative approach – treating DEI as a PR move rather than a foundational pillar in corporate strategy – permeated corporate culture, leaving companies exposed. When the backlash hit, those commitments crumbled under pressure, revealing just how fragile their so-called progress really was.
The anti-equity movement has been emboldened by figures like Robby Starbuck, labelled by The New York Times as the “anti-DEI agitator that big companies fear the most.” His mission is explicit: “I won’t rest until we eliminate leftism from corporate America.” Starbuck, a former music-video director turned conservative activist, and others portray DEI not as a corrective framework but as a divisive ideology, rallying around a call for “neutrality.”
We will continue to focus on increasing representation.
– Dawn Jones, chief diversity and inclusion officer, Intel
But let’s be clear: neutrality is a privilege. It upholds the existing system of exclusion and inequality, allowing companies to disengage from meaningful change under the guise of impartiality.
The narrative shift has been amplified by the Supreme Court’s ruling on affirmative action. The court’s decision, which interprets the Equal Protection Clause of the Constitution, applies specifically to public and private colleges that receive federal funds. It doesn’t apply to private and public corporations.
Race-based employment decisions, like reserving hiring slots for racialized candidates, were already illegal under Title VII. of the Civil Rights Act of 1964, a federal law that prohibits discrimination in employment based on race, colour, religion, sex or national origin. In states like California, where Proposition 209 has banned race-based affirmative action in state university admission, state hiring and state congracting for nearly three decades, companies have continued their DEI programs without legal challenges.
What’s changed isn’t the legality of DEI – it’s the story being told about it. By retreating from DEI, companies aren’t avoiding legal headaches; they’re choosing a side. They’re aligning with a status quo built on exclusion, sending a message that inclusion is expendable when it’s inconvenient.
But the economy itself isn’t leaning toward exclusion; it’s hurtling away from it. Gen Z – poised to become the largest working demographic – prioritizes DEI so strongly that one in two won’t work at a company without diverse leadership, and 68% believe employers aren’t doing enough to foster diversity, according to ManpowerGroup, a multinational recruitment agency.
DEI isn’t about optics – it’s about survival
CEOs who treat DEI as window dressing – a splash of colour for their press releases and LinkedIn feeds – are fundamentally missing the point. In today’s polarized market, DEI isn’t a political statement; it’s a business survival strategy.
The data is clear: companies that invest in DEI outperform their peers in innovation, customer loyalty and market relevance. A 2015 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity in management were 35% more likely to have financial returns above their industry mean. But DEI works only when it’s embedded into the foundation of an organization. When it’s treated as an afterthought, it collapses under the weight of scrutiny.
True resilience demands more than lip service. It’s more than one-off initiatives or employee resource groups tucked into a dusty corner of the HR department. Resilience comes from a culture of inclusion that runs so deep it holds firm through economic downturns, political headwinds and shareholder pressures. Companies that understand this know that a successful DEI strategy isn’t cosmetic; it’s rooted in long-term commitment and integrated into every aspect of the business.
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In a landscape where many are retreating from DEI, some companies have stood as beacons of resilience. Intel first launched a US$300-million Diversity in Technology initiative in 2015 aimed at doubling the number of women and underrepresented communities in technical roles. Despite cutting 15% of its workforce in August, Intel retained its vaunted commitment to DEI and continued to prioritize an inclusive culture.
“We will continue to focus on increasing representation,” the company’s chief diversity and inclusion officer, Dawn Jones, said in September. (Whether that commitment holds now that Intel forced out its CEO in December remains to be seen.)
Outside of the United States, where DEI is less contentious, South Africa’s Investec Bank as well as Vitasoy, Unilever and StarHub have been recognized by Corporate Knights’ 2025 Global 100 ranking for their racially diverse leadership, demonstrating that embedding DEI into corporate strategies drives innovation and sustainable growth.
This isn’t about “virtue signalling” or appeasing critics. Real DEI work – transformative DEI work – upends traditional corporate structures and power balances. It’s uncomfortable by design, made to challenge ingrained biases, to question privilege and to open doors where they’ve historically been closed. Leaders committed to this work know that resistance is part of the journey.
Here's how corporate leaders can establish a DEI framework that lasts:
1. Make DEI part of the business, not just the brand
DEI shouldn’t just be a side hustle for HR and marketing departments. It has to be integral to how your company operates. Heineken’s Women in Sales program offers a compelling example. Sales isn’t a peripheral department – it drives revenue and growth. Despite 24% of women in the overall company, only 9% of the senior sales roles were occupied by women in 2020. By increasing women senior managers in sales from 9% in 2020 to 19% in 2022, Heineken began aligning its leadership with the shifting demographics of its consumers, as women begin to outnumber men as alcohol consumers.
2. Build enduring DEI infrastructure
DEI efforts fall apart when they lack accountability and follow-through. Real progress requires systems to track and measure impact. Set goals for diversity in hiring and promotions and regularly assess whether you’re meeting them. Ongoing training – tailored to challenge biases and promote equity – is key. A company’s commitment to DEI can’t stop at entry-level hires; it has to be a ladder, not a revolving door.
3. Dig deep to make real gains
In a world where visibility can make you a target, DEI doesn’t need to be loud to be effective. Dig into internal issues that drive inequity: pay gaps, lack of diversity in leadership, inequitable promotion practices or a toxic workplace culture. Real benefits are the initiatives that directly improve employees’ lives: fair wages, comprehensive healthcare, flexible working options and robust support for mental health and well-being. These aren’t social media wins; they’re the hard-won gains that position you for lasting relevance.
As we 2025 begins, the call for DEI isn’t fading into the background. The question isn’t whether DEI is worth the risk; it’s whether your company can afford to ignore it. Real leadership won’t be measured by who avoids backlash or sidesteps discomfort. It will be measured by who builds for the future while others retreat to the past.
Shilpa Tiwari is an ESG consultant and the founder of No Women No Spice. She lives in Tanzania and Toronto.
