Deciding Whether to Maintain DEI Programs

Why dismantaling DEI should worry every Leader I've been watching the current narrative around diversity with growing concern. DEI teams disappearing, programmes being stripped back, and a subtle shift in organisational priorities that feels eerily familiar. Then I picked up Matthew Syed’s "Rebel Ideas" and the CIA story hit me hard. Pre-9/11, the CIA had created what they thought was excellence. Their recruitment targeted a specific profile: predominantly white, male, Ivy League graduates. On paper, they had the "best" talent. The devastating reality? - 90% of officers couldn't speak the languages of regions they monitored - Teams shared identical backgrounds, education, and thinking patterns - Critical intelligence was missed because "different" informants weren't deemed credible - Groupthink led to catastrophic blind spots Sound familiar? It should. Because right now, as organisations dismantle their DEI initiatives, we're sleepwalking towards the same trap. When we remove the structural support for diversity, we default to what's comfortable - hiring people who think like us, look like us, sound like us. This isn't about politics. It's about survival. The evidence is clear: diverse teams make better decisions, solve problems more effectively, and see threats and opportunities others miss. But maintaining diversity requires intention and structure. Without it? We're building modern-day CIA blind spots in our organisations. I've seen this firsthand building the Neuro-Diverse Centre of Excellence at EY. When you bring in different perspectives, you don't just get different answers - you get questions you never thought to ask. To every leader considering scaling back DEI: please read those first 40 pages of Rebel Ideas. Then ask yourself: What critical signals might your homogeneous team be missing right now? History has already shown us the cost of perspective blindness. Let's not pay that price again. #Leadership #CognitiveBlindness #DiversityMatters #OrganisationalChange #DEI

After the recent U.S. Supreme Court ruling striking against affirmative action in higher education, leaders might be concerned that their DEI initiatives and programs will face additional scrutiny and legal challenge. While reducing liability is a responsible move, the author cautions against letting these efforts lead to a fear-driven abandonment of effective DEI practices. To sustain DEI progress in this time, companies should focus on curtailing the usage of racial data that is the most legally risky, while taking decisive action to continue using racial data to eliminate discrimination, remove bias, and create fairer workplaces. The author illustrates how to curtail this risk, identifies five goals for this data use (to identify disparities, to remove universal barriers, to correct discrimination, to design fair processes, and to demonstrate DEI progress), and offers dos and don’ts for companies hoping to sustain DEI progress. #diversity #equity #inclusion #belonging

As some companies scale back DEI initiatives, others are doubling down. So where does FMCG stand? In the past year, I’ve seen two diverging paths unfold. → On one side: companies quietly scaling back their Diversity, Equity, and Inclusion (DEI) programs, citing budget constraints or “shifting priorities.” → On the other: brands like The Coca-Cola Company, PepsiCo, and Unilever making bold, public reaffirmations of their DEI commitments—despite political and economic headwinds. Why the split? And more importantly—why should it matter to those of us in the FMCG industry? Let’s look at the facts: According to a 2024 Gartner study, nearly 27% of U.S. companies reduced DEI budgets this year—some citing fear of political backlash. Meanwhile, brands that have maintained DEI as a business priority—like Coca-Cola, which recently recommitted to its ‘Better Shared Future’ DEI strategy—are seeing stronger innovation pipelines and deeper brand loyalty. In FMCG, where consumers are increasingly diverse, socially conscious, and value-driven, scaling back on DEI isn’t just a reputational risk—it’s a business risk. Here’s what I’ve observed through our executive search work: - The most future-ready FMCG leaders today understand that DEI is not a box to tick—it’s a growth strategy. - Inclusive teams launch faster, innovate smarter, and connect better with modern consumers. - Boards and investors are increasingly viewing DEI as a key signal of long-term resilience and agility. And here’s what I know from experience: Inclusion doesn’t happen by accident. It’s not driven by policies alone—it’s built by leaders. That’s why FMCG companies who are serious about transformation aren’t just hiring executives who “fit the mold.” They’re hiring: → CMOs who understand how to authentically represent diverse audiences. → HR leaders who build systems that attract and retain non-traditional talent. → GMs who can lead multicultural teams across regions without defaulting to one-size-fits-all leadership. Because diversity without inclusion is cosmetic. And inclusion without leadership commitment is unsustainable. So—where does the FMCG industry stand today? It’s divided. And it’s being watched. Consumers are watching. Investors are watching. And talent is watching too. The companies that treat DEI like a trend will fade into irrelevance. The companies that embed it into culture, product, and leadership? → They’ll lead the next era of FMCG. Let’s talk about how we hire—and who we empower to lead. #FMCG #ExecutiveSearch #DiversityInLeadership #DEI #ConsumerGoods #LeadershipHiring #InclusiveLeadership #LeadershipDevelopment

DEI Rollbacks: A Step Backward—But We Can Keep Moving Forward Toni Morrison once said, “The very serious function of racism is distraction. It keeps you from doing your work. It keeps you explaining over and over and over again, your reason for being.” That is exactly what is happening with the current administration’s attacks on DEI programs. They’ve co-opted the language of equity to claim “reverse racism,” falsely asserting that they are “ending illegal discrimination” and “restoring merit-based opportunity.” But the underlying message is clear: a manufactured narrative that suggests DEI programs take opportunities away from deserving individuals, implying that those who don’t fit the dominant identity are somehow unqualified. Let’s be clear—DEI is not about excluding talent. It is about expanding access. These programs create pathways for historically excluded communities—including women, veterans, and individuals with disabilities—who possess the skills, qualifications, and, in many cases, are overqualified but would have otherwise been overlooked due to systemic barriers. As a Non Profit Executive, I’ve led  successful strategies that fostered equitable pathways and true inclusion. And if organizations want to thrive, we don’t need less of these strategies—we need more. The facts don’t lie: Studies consistently show that diverse teams drive more innovation, make better decisions, and yield higher profits. Yet, despite this evidence, we are witnessing a rollback of DEI efforts across industries. So what can we do? Even in the face of these rollbacks, organizations can continue advancing equity in meaningful ways: ✅ Embed DEI into core business strategy. Move beyond performative gestures—ensure inclusion is a fundamental part of how decisions are made and who gets a seat at the table. ✅ Reframe DEI as a driver of innovation. Position diversity, equity, and inclusion as competitive advantages, emphasizing their proven impact on creativity, problem-solving, and business success. ✅ Prioritize inclusive hiring practices. Implement skills-based hiring, equitable advancement opportunities, and mentorship programs to cultivate diverse leadership pipelines. ✅ Leverage Employee Resource Groups (ERGs). Support and fund ERGs to empower employees, foster belonging, and create spaces for underrepresented voices. ✅ Hold leadership accountable. Ensure executives and decision-makers are actively championing equity efforts, not just delegating them. DEI is not about checking boxes—it’s about unlocking potential. Despite the distractions and political rhetoric, we must remain committed to building workplaces where talent thrives, opportunity expands, and inclusion fuels innovation. How is your organization maintaining its commitment to DEI in these times? Let’s keep this conversation going. 👇🏾 #DEI #Equity #Leadership #Inclusion #Innovation

While it's not the majority opinion, there are some prominent companies that have pulled back (either publicly, internally, or both) from their #DEI commitments. What I'm finding interesting is which are facing the most customer backlash. From the examples I've seen, it's the brands that were closely associated with--and often had stronger investments in--their inclusion initiatives that are experiencing the most pushback, including boycotts. This is crucial in an era in which #DEI investment requires more mature #RiskManagement. Many companies are likely thinking about the "What if we get sued for doing DEI?" but may not be actively thinking "What if we face commercial consequences for pulling back on our previous commitments?" Both are necessary to consider when data shows that progressive consumers are growing more likely to align their wallets with their values (and more likely to do this than conservative consumers). My advice? Continue to align to your values and mission. If you make changes, state clearly and in plain language why, and also state what's not changing (if anything).

Many of you, especially HR folks, are navigating the Trump Administration's Executive Orders on DEI. Here are 6 principles to keep in mind as you guide your teams: First, for a quick grounding: It remains illegal under federal anti-discrimination laws to discriminate on the basis of protected characteristics like race and sex. That has not changed. (Link to a good law firm bulletin below.) 1. Take a deep breath. And drink a little water too. Good decisions come from rational analysis, stressful times need steady hands, and you can't do any of that if you're panicking. 2. Make changes in daylight. When you're changing something controversial, it's tempting to make that update at 2AM on a Sunday. Don't. Instead, share your logic with your team/company. This sharpens your thinking and builds trust. 3. Figure out your stakeholders and consider all of them. Yes, the President just issued a number of sweeping executive orders impacting DEI programs, but did your employee base suddenly change their perspectives and motivations? Do you have employees outside of the U.S.? How about your customers or shareholders? Did their expectations change? Make sure you're looking holistically at your constituents. 4. Find the upside. I know it may seem flippant to say that, but here's my cold hard CEO take: Companies keep initiatives that make them successful. If you haven't already tied inclusion initiatives to a business case, use this as an opportunity to do that. If you're looking for inspiration (or protein powder at a great price), look to Costco: "Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the 'treasure hunt' that our customers value." Beautiful way to explain why DEI initiatives move the business forward. 5. Rebrands are not a silver bullet. Yes, it's tempting to do a massive "find and replace," for DEI and call it...literally anything else. Don't do that. You miss an opportunity to have a productive conversation around why you're doing whatever it is that you're doing, and you're insulting your employees' intelligence. 6. Find your north star. There is no risk-free decision. If you rip out inclusive practices, you introduce risk. If you make no changes to existing DEI policies, you have some risk. So don't make risk-based decisions, make values-based decisions that are informed, but not dictated, by risk. I hope you find these *non-legal advice* principles helpful. And if you're looking for tactical guidance, we'll be announcing Ethena webinars on these topics, in partnership with great employment counsels, very soon. Please let me know in the comments if there are any questions/topics you'd like us to address in these webinars.

Did DEI fail or did we fail DEI? It’s no secret that many companies are scaling back their diversity initiatives but I have 2 very different theories as to why. In 2020, companies made bold DEI commitments. Big names like Meta and McDonald's created dedicated teams and shouted from the rooftops about building more diverse workforces. Fast forward five years, and many of those same companies are now scaling back these efforts. They all claim DEI is still a priority but their actions say otherwise. So, what’s going on? Let’s break it down: Reason 1: Success is uncomfortable. When DEI initiatives succeed, they challenge the status quo - and that’s not always a comfortable change. Real progress means shaking up old systems, and that can trigger resistance. For those companies feeling the heat, my advice is simple: stay the course. DEI isn’t just a moral imperative; it’s a long-term strategy that pays dividends in innovation, culture, and performance. Reason 2: Tokenism backfires. For others, the problem stems from how these initiatives started. Public promises made for appearances, with no meaningful targets or integration into business strategy, were doomed from the start. Without measurable KPIs tied to business success, DEI becomes an accessory rather than an engine for change. What needs to happen next? 1️⃣ Tie DEI to business performance. If it’s not measurable, it won’t survive. 2️⃣ Tackle systemic barriers. Surface-level fixes won’t cut it - address deeper issues in talent pipelines, workforce design, and organisational culture. 3️⃣ Prove the impact. Use data to show how DEI drives results. DEI isn’t a one-time project; it’s a commitment to building better businesses. The companies that understand this will come out ahead. What’s your take? Are you seeing DEI initiatives thrive or falter in your industry? #DEI #Diversity #TalentManagement #BusinessGoals

The DEI Dilemma * What happens when diversity, equity, and inclusion (DEI) initiatives are caught in the crossfire of shifting political, economic, and social pressures? Can companies still achieve measurable growth and competitive advantage through DEI, or is it more prudent to redirect investments toward other strategic priorities? * “...Abandoning DEI may appease critics and reduce immediate costs, but it risks eroding long-term competitive advantages, stakeholder trust, and organizational resilience. Conversely, doubling down on DEI amidst political and economic pressures requires bold leadership but offers the potential for transformative gains…Are companies prepared to sacrifice proven value for short-term expediency, or will they recognize DEI as an indispensable driver of growth in an increasingly diverse and competitive market…?" * As organizations navigate these challenging questions, the stakes are clear: decisions made now will ripple across business performance, stakeholder satisfaction, and employee morale for years to come. My latest in Forbes: https://lnkd.in/eTHfF6zn

“We had to change some language on our website,” explained a CMO at a $750 million tech company, “to address the lightning rod issues.” Righteous Drew wanted to push back and say, “If every company does this, aren’t we all being complicit?” Coach Drew held his tongue. There’s a lot at stake right now, and not just for businesses with government contracts. Enough with the code, what’s the real issue here? One word: Trust. Every established brand is a promise. That promise combines both its words and actions over time. A brand that promises to be a good corporate citizen and demonstrates its commitment via actions earns goodwill with multiple stakeholders, including employees, customers, prospects, partners, and influencers. A sudden shift in actions (like dropping DEI or ESG programs) can break that goodwill and or diminish trust. Get real, Righteous Drew. Aren’t the risks of non-compliance with the new political correctness too great to stand on one’s high horse? Indeed, much of the S&P 500 thinks so. The New York Times reported last week that the language “diversity, equity and inclusion” has been scrubbed from 200 of the 350 S&P 500 companies that had mentioned it. According to the NYTimes, many felt obligated to do so based on “an executive order that instructed federal agencies to investigate ‘illegal D.E.I.’ in the private sector.” It’s even more serious for companies or institutions dependent upon government or red-state contracts. If they want to keep these contracts or get new ones, they must scrub their websites of the 30 or so trigger words, such as diversity, equity, inclusion, and climate change. We’re talking about millions of dollars and thousands of jobs. Aren’t most of these big companies just using different words? Yes, some are. These companies are softening or replacing words like “equity” with “belonging” or “inclusiveness” with “fairness.” In these cases, the policies, programs, and staffing behind the words aren’t changing. Coach Drew approves. Other companies, big and small, have not just abandoned the words; they’ve eliminated the programs. Now we’re in reputational damage territory. Certain stakeholders will wonder if they can ever trust the company again. Righteous Drew is fretting. Costco decided not to change its DEI policies, while Walmart did. Both brands have a lot at stake. Thus far in 2025, CostCo’s stock is down 2%, while Walmart’s is down 6%. It's too early to measure the impact (if any) these changes will have on revenue, employee retention, etc., but it will be fascinating to watch them play out. Righteous Drew thanks Costco for its bravery. Bottom line: This decision to change your corporate policies is way bigger than marketing. C-Suites and investors need to be part of the conversation. For a guide on how marketers can help guide these conversations, see the link to my post on RenegadeMarketing.com in a comment below. [Ping me: I’d love to hear how your company is responding to all of this]