A top executive at a major company warns brands: Don't pull the plug on DEI programs

When I began my career, there was no such thing as diversity, equity, and inclusion programs. And to be blunt, that’s probably why I can count on my hand the number of Black, brown, and queer people I worked with through the 1990s and mid-2000s. Cubicles were stacked with mostly white straight cisgender men.

And there’s some irony in the fact that cubicles were the order of the day at the time. You were siloed off, able to hide from others by keeping your head down. And if you were gay, you most certainly hid it, metaphorically keeping your head down because there were no programs — or people — who made you feel that you belonged. You were a cubicle unto yourself.

Then through the 2010s, I noticed meaningful change. I saw more people of color around me, more queer people around me, more women around me. Offices were made up of more than just young to middle-aged white men. It was refreshing. I even recall the first time I saw a Pride flag on someone’s desk.

“Most employers embrace those who bring their authentic selves to the workplace,” a chief diversity officer of a large media company said during an exclusive conversation with me, where they wished to remain anonymous because of the sensitive nature of the subject. “Businesses should be about fostering inclusive environments where all employees can thrive, regardless of their background, gender, race, or sexual orientation.”

It was during the 2010s that employee resource groups started to pop up. I was an executive sponsor for an LGBTQ+ group at one of my corporate stops. It was an honor, but what was even better was that I knew I was not alone. There were hundreds of us scattered through offices all over the world. We were joined together.

In recent years, DEI programs in corporate America have faced increasing resistance, particularly from conservative figures like Robby Starbuck.

Starbuck is a former video producer. He has absolutely no background in DEI. No expertise. No qualifications on human resources. No idea about what it feels like to be marginalized. He’s nothing but a loudmouthed xenophobic, homophobic, racist bogeyman. Yet he’s spooking the bejesus out of corporate America, and some companies have been quick to respond by folding up their DEI tents.

Ford, John Deere, Toyota, and Lowe’s are among several major companies that have recently done away with their DEI initiatives. They might as well hang a sign on their front doors that says, “Only White Cisgender Straight Men Need Apply.”

Further, Starbuck and other narrow-minded bigots have created a political climate around this issue. Some are even “joking” that Vice President Kamala Harris was a DEI hire. It’s infuriating to listen to them because they are about as far removed from the corridors of corporate America as you can get.

As someone who worked in corporate PR, for a variety of large companies over the years, I’ve seen firsthand the remarkable effect DEI programs have had on the environments where I have worked, particularly as a gay man who finally felt at home at work toward the later stages of my career.

That’s why I was overwhelmed when I began to see corporations and businesses everywhere launch Pride initiatives during June. There was a time in my life when that was unheard of. Pride in your sexuality was the last thing you brought to the office.

In recent years, I began hearing of “pinkwashing,” a derogatory term that describes businesses that only check a box by supporting our community in June, then pull the plug on July 1. I never thought of it as “pinkwashing.” I was grateful for all the support. I even wrote about how, instead of criticizing companies for jumping on the bandwagon, we should be counting our blessings.

So yes, now it seems I might be in the position of saying, “I told you so!” As some companies scale back or abandon their DEI initiatives, that would include no longer planting their Pride flags every June because they’re wrongly afraid of the backlash.

As the diversity officer I spoke to pointed out, many of these decisions are driven by fear — fear of litigation, fear of political pressure, and fear of financial loss."No good decisions are made out of fear,” they said. “DEI programs, if implemented thoughtfully and authentically, are not just about compliance or optics. To pull back from these efforts in a knee-jerk reaction to political pressure would be to ignore the real benefits these programs bring to companies and their employees.”

One of the key points the officer raised is that what happens externally in society often reflects internally within organizations. “The racial unrest, violence against LGBTQ+ communities, and xenophobia that we see in the news are not isolated from the workplace,” they pointed out. “Employees bring their experiences and identities to work, and when those identities are under attack in the broader culture, they feel it on a personal level.”

“This is why DEI programs are more important now than ever. They provide a framework for addressing these issues and supporting employees who are affected by them. Removing these programs would leave companies ill-equipped to navigate these complexities,” the officer continued.

They also highlighted the shifting demographics of the global consumer market. As populations become more diverse, businesses that fail to prioritize DEI are essentially ignoring a significant portion of their customer base. "If you're not looking at how this impacts your business, you're just shifting the risk,” they cautioned.

In other words, while companies may think they are avoiding short-term financial or political risk by pulling back on DEI initiatives, they are actually creating long-term business risks by alienating both employees and customers.

In addition to the moral and ethical imperatives of DEI, there are clear financial incentives. Numerous studies have shown that diverse teams are more innovative, more productive, and ultimately more successful. A McKinsey report found that companies with higher diversity are 33 percent more likely to outperform their peers in terms of profitability.

When organizations remove DEI programs, they are not only failing to support their employees, they are also hurting their bottom line. "It's not going to go away by virtue of doing away with the programs,” the officer warned.

The Supreme Court’s decision to strike down affirmative action in college admissions has further fueled concerns about the future of DEI in corporate America. Many fear that similar rulings could extend to the business world, making diversity initiatives illegal. “Companies should not operate in fear of what might happen,” the officer said. “Instead, they should plan for the future and ensure their DEI programs are compliant with existing laws while remaining committed to inclusivity.”

One of the most important takeaways from the interview was the need for steady leadership. Companies that reacted quickly to the racial justice movements of 2020 without a long-term DEI plan are now the ones most at risk of pulling back on their DEI efforts. "Those same ones that are now falling away," the officer noted. “They are the ones who did it based on fear and trepidation, not because they understood how it has implications for their business. DEI should never be a reactionary move; it should be an integral part of a company's long-term strategy.”

To navigate this turbulent landscape, companies need strong DEI practitioners who understand both the legal and social aspects of the work. “These practitioners can help organizations adjust their programs to remain compliant while continuing to promote inclusivity. Cutting these roles or departments altogether would only increase the risk of future legal or reputational damage. They end up just backloading all of the risk," the officer cautioned.

The challenges that DEI programs address — inequities, discrimination, and exclusion — are not going away, regardless of political pressure. Companies that are truly committed to diversity and inclusion must stay the course, even in the face of opposition. As the officer wisely advised, "We have to remain steady in understanding what it takes to actually create inclusive practices across all our organizations. In doing so, companies will not only protect their employees and their bottom line, but they will also contribute to a more equitable and just society.”

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