The Great DEI Debate: Rolling Back or Moving Forward?

It started with a whisper. A quiet email to employees, perhaps, or a small change in leadership’s tone during all-hands meetings.

But then it became louder. Announcements of scaled-back diversity initiatives, and a notable absence of the words ‘inclusion’ and ‘equity’ from corporate reports. Now, it has morphed into a wave of high-profile rollbacks – especially across corporate America – moving us into a new era not just for DEI, but for ESG communications as a whole.

"Companies in the top quartile for gender and ethnic diversity on executive teams are 39% more likely to outperform on profitability."

Landmark decisions

Just a few days into 2025, Meta announced the discontinuation of its DEI programmes, stating that the term ‘DEI’ has become contentious and that the company would focus on sourcing diverse job candidates without using the ‘diverse slate approach’ (which requires recruiters and hiring managers to fill positions using a diverse pool of qualified candidates). The role of the company’s Chief Diversity Officer Maxine Williams is also shifting towards accessibility and engagement, it said.

Similarly, Amazon has begun phasing out some of its DEI initiatives, aiming to integrate inclusivity into broader frameworks rather than maintaining standalone programmes. Meanwhile, Walmart has announced several shifts in its policies, including the decision to stop prioritising suppliers owned by women or minorities.

The retail giant has also decided not to extend its five-year pledge to fund a racial equity centre, established in 2020 in response to George Floyd’s death, shifting towards accessibility and engagement.

Drivers of DEI evolution

  • Measurement challenges. Many organisations struggle to effectively measure the success of their DEI initiatives, leading to scepticism about their long-term value.
  • Economic constraints. In tough times, DEI programmes are often seen as expendable, especially when their direct business impact is so difficult to quantify.
  • Political backlash. The change of political leadership in the US and the rise of anti-woke sentiment have prompted some companies to retreat from DEI to avoid controversy. Similar trends are being seen in wider ESG programmes (read our recent blogpost on the rise of greenhushing for more insights).
  • Shifting priorities. Companies are increasingly integrating DEI into broader frameworks, reframing it as a cultural value rather than a standalone initiative.
Many organisations struggle to effectively measure the success of their DEI initiatives, leading to scepticism about their long-term value.

Communicating change with sensitivity

Whether or not these DEI decisions are the right ones for companies, and society at large, remains to be seen. But, for now, communications professionals have a difficult job to do.

Rolling back a DEI programme is fraught with reputational risks. When managed with transparency and empathy, however, this kind of dialogue can open the door to thoughtful conversations about the organisation’s evolving priorities.

A good place to start is honesty. Employees, stakeholders, and customers deserve to understand the rationale behind the change. Whether it’s due to budget constraints or a strategic pivot, clear and candid communication builds trust. Avoid corporate jargon or vague and clinical statements like ‘realigning priorities’ – they only breed scepticism.

Equally important is acknowledging the human impact. Scaling back or stopping a DEI initiative affects real people. Those who benefitted from the programme, those who worked tirelessly to build it, and those who saw it as a symbol of progress. Empathy must underpin every message, from internal memos to public statements.

Involving stakeholders in the process is also important. Invite feedback from employees, particularly those from underrepresented groups, to help shape the transition. This inclusive approach signals that the commitment to diversity remains, even if the form it takes is no longer the same.

Finally, frame the change within a larger narrative. For instance, if a company is discontinuing its standalone DEI team but integrating diversity principles into all departments, emphasise how this approach will embed inclusivity more deeply across the organisation.

In fact, reframing of DEI efforts is an opportunity to reposition corporate communication as a tool of advocacy – a way to ensure these revamped programmes are seen as indispensable rather than discretionary.

Communicating DEI’s value to preserve it

For any organisation determined to keep DEI alive in a different form, ongoing clear communication of the value of such initiatives will be vital. This means reframing the conversation to align more closely with business and political narratives.

DEI should be viewed first and foremost as a business imperative, not just a social nicety. Diverse teams drive innovation, foster creativity, and deliver better financial performance. Share stories and data that illustrate these connections. For example, McKinsey’s research shows that companies in the top quartile for gender and ethnic diversity on executive teams are 39% more likely to outperform on profitability.

Where appropriate, comms professionals should also highlight alignment with broader ESG goals. Of course, some companies are also pulling back on wider ESG programmes, but not all, by any means. And when DEI is positioned as integral to achieving environmental and social objectives, it can become harder to dismiss.

Celebrating wins through real-life stories can also increase the perceived value and impact of DEI. Whether it’s an employee sharing how an inclusion initiative changed their career trajectory or a measurable increase in diversity metrics, storytelling humanises the impact of these programmes and creates emotional resonance.

But preserving DEI also means being prepared for challenges. Not everyone will be an advocate, and organisations must be ready to counter scepticism with clear, consistent messaging. Comms teams should equip leaders with talking points and success stories to use in conversations with stakeholders, from investors to employees.

Finding a new way forward

Although DEI rollbacks are a defining moment for corporate culture, they don’t have to signal a retreat from progress. How organisations communicate these changes, and/or their continued commitment to DEI, will shape their reputations for years to come.

For those scaling back, the priority must be transparency and empathy, ensuring stakeholders feel respected and heard. For those pushing forward, the focus should be on showcasing DEI’s tangible value, celebrating success, and building resilience against external pressures.

In an increasingly polarised world, one thing remains clear: the way we talk about DEI matters just as much as what we do.

Wondering how to tell your new DEI story with empathy and impact? Whether you’re evolving or reinforcing your initiatives, the Rationale team can help you craft messages that resonate. Get in touch to get started.

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