When Did DEI Become A ‘Dirty’ Word? Exploring The Benefits Of Diversity, Equity And Inclusion

In recent months, the internet has been buzzing with chatter about DEI. Major American corporations, such as Meta, Amazon, and Target, have either scaled back or completely abandoned DEI initiatives altogether. This retreat comes amidst growing backlash, with many decrying DEI as discriminatory and blaming it for everything from airplane crashes to the LA wildfires. 

But what exactly is Diversity, Equity and Inclusion (DEI)? Let’s start with what it’s not. 

It is not about putting people in positions purely because of their race, gender, or sexual orientation. If that were the case, then executive leadership demographics would look a lot different (Spoiler: Still disproportionately male and white). 

The purpose of DEI is to encourage organizations to build frameworks that ensure that no group gets preferential treatment over the other. The aim is to promote fair treatment for all people, a necessary stipulation since historically, and in many cases, still, organizations have outwardly discriminated against underrepresented groups due to factors outside of their control, such as identity and/or disability. Thus in addition to bias mitigation in hiring and promotion (i.e. enacting standard practices so that Chad does not get the upper hand simply because he reminds the boss of his younger self) and cross-cultural training, DEI also includes policies such as Flexible Work, Mental Health Support, Pay Transparency, and access to prayer rooms and lactation spaces. 

DEI is not, as a white house executive order notes “Radical And Wasteful”. On the contrary, a report by McKinsey and Company on the business case for DEI found that the relationship between diversity and financial performance has strengthened. That is, in terms of profitability, diverse companies are more likely to outperform less diverse ones.

For many organizations DEI was surface-level, that’s why it was so easy for them to get rid of it in the first place. Performative diversity creates the appearance of inclusivity but fails to enforce action to address systemic bias and inequality.

Changing logos to a rainbow during Pride month to signify allyship while not offering parental leave benefits to non-heterosexual couples, is not DEI.

Posting “Black Lives Matter” squares on social media, yet discouraging employees from talking about race-related issues to maintain a “harmonious work environment,” is not DEI.

Hiring a woman as a DEI officer, but not giving her the resources to implement change, is not DEI.

It’s embedded into an organization’s culture, how it behaves. It’s not enough to just talk the talk, organizations must also walk the walk.

Yet, whereas in the U.S., even the talk has become misrepresented, with internet trolls using DEI as a dog whistle to stoke division and further political agendas, in many corners of the world, DEI has been embraced as a strategic business advantage.

While Deloitte has rolled back DEI in America, for example, its branch in the United Kingdom, has firmly doubled down on diversity goals. It seems that the world knows what the U.S. may have forgotten, that DEI touts a multitude of benefits. 

Diversity can benefit an organization’s reputation, leading to a wider pool of candidates as well as decreased turnover. Studies have found that employees who have high positive perceptions of their organization’s DEI practices experience higher levels of engagement.

Organizations with diverse teams benefit greatly from the breadth of experience, perspectives, and skill sets that come with a non-homogenized population (See Bonnie Chan, CEO of HKEX in Hong Kong, banning all-male boards to prevent groupthink). Diversity in talent can lead to more innovation. It can also translate to improved decision-making. A Cloverpop study found that companies with diverse teams made better business decisions 87% of the time.

The reality is that Diversity, Equity, and Inclusion aren’t just buzzwords, they’re essential strategies for long-term business success. By retreating from DEI, companies overlook valuable opportunities and, in an increasingly interconnected world, risk being left behind.