How can companies navigate the evolving DEI landscape?
GoodBlog | read time: 6 min
Published: 23 May 2025
In recent months, the corporate diversity, equity and inclusion (DEI) landscape has been tumultuously reshaped by a wave of legislative proposals and political pressures in the United States, aimed at dismantling corporate DEI programmes. This shift has sparked a flurry of controversial headlines and debates, positioning DEI as a political lever. Against this backdrop, major US companies are reconsidering their approach to DEI, with many already wholly, or in part, rolling back corporate DEI roles, initiatives and objectives.
These developments have prompted multinationals to consider how they should navigate an increasingly complex legal and social environment, where the balance between global strategies and local compliance presents unique challenges. Whilst some companies have quietly removed references to DEI from their public-facing documents, others have made bold statements and wiped these commitments from their websites and core strategies. Some, on the other hand, have reaffirmed their DEI pledges and programmes. This varied range of responses illustrates the challenges companies now face in navigating this evolving landscape.
When considering DEI it is important to bear in mind that the legal, cultural and political situation differs greatly between the US, the UK and the EU. In the UK, companies are encouraged to take “positive action” to favour or encourage people from protected groups, either as a means of addressing historic barriers or an institutionalised lack of opportunity. This is about putting disadvantaged groups in a position of equal opportunity – rather than reserving jobs or promotions for underrepresented groups. In the US, a more assertive concept of “affirmative action” tends to apply. This involves considering protected characteristics such as race, gender, or ethnicity as one of the influencing-factors in decisions such as hiring. For some organisations, this may mean introducing quota systems, although such positive discrimination can be legally and politically contentious.
In the UK and the EU there are moves to underpin DEI with additional legislation. The UK Government is proposing new anti-discrimination laws and requirements, potentially expanding the scope of pay gap reporting beyond gender to include ethnicity and disability. Similarly, the EU has recently adopted the Pay Transparency Directive and the Gender Balance on Corporate Boards Directives n contrast to the US, these changes could increase DEI requirements for companies operating in the UK and the EU.
Rethinking language and framing
Caught in the crossfire between political pressures and societal expectations, some companies are looking at new approaches, reframing or rebranding their DEI initiatives, often seeking to achieve the same goals, but without the political or media blow-back. Terminology such as ‘human-centred leadership’, ‘inclusive leadership’, and ‘belonging and inclusion’ is starting to emerge. This may also help foster a deeper understanding of what DEI is really about. In some settings, diversity is simply understood as difference, with little regard for the varying experiences of being in the workplace environment, nor the inequities or possible lack of opportunities that contribute to those experiences. And in some quarters, affirmative action has been positioned as antithetical to merit, with some seeking to suggest that DEI programmes give preferential treatment to disadvantaged or minority groups rather than promote or hire on the basis of merit.
Finding the right path is likely to prove a challenge for many businesses.
GoodCorporation has investigated selected organisational practices that contribute to the effective implementation of a DEI strategy, surveying governance issues, DEI policies and management responsibilities. Our research also explored the key challenges for organisations in meeting DEI needs and standards. Amongst the key challenges reported by organisations were:
- Achieving better representation amongst their workforce;
- Managing DEI across multiple geographies; and
- How to carry out effective DEI training that doesn’t leave “non-minority” employees feeling marginalised
These challenges reflect some of the pitfalls of mainstream corporate DEI strategies. Characterised by buzzwords, jargon-heavy terminology and sporadic (but often mandatory) training, DEI initiatives can often feel tokenistic. Not only that, limited budgets and minimal follow-up as well as poorly executed surveys, talks and training can have the opposite effect to that originally intended. Collectively this has contributed to a widespread sense of DEI-fatigue and a growing disillusionment with corporate DEI programmes.
Nevertheless, hasty decisions to scrap, or mothball DEI roles, policies and programmes may also have serious legal and commercial implications. Many employees value DEI initiatives such as inclusive hiring and employee belonging programmes, and companies risk alienating their workforce if these are rowed back, particularly if this is seen as a sudden decision. If they can be scrapped so easily, employees and other stakeholders may be left wondering whether equity and inclusivity were ever really part of their employers’ core values.
Such hasty decision-making may also impair future stakeholder buy-in for similar initiatives. Prospective employees, suppliers and investors are much more likely to have confidence in a firm that is consistent and clear with its values and guiding principles. This is particularly relevant for companies wanting to attract and retain younger talent, whose growing expectation is that their employers’ practices align with their own personal values.
How companies can respond strategically
DEI is a dynamic field that requires businesses to adapt and evolve. Whilst it’s important not to react impulsively to extreme examples portrayed by the media, the current uncertainty can be seen as an opportunity for organisations to revisit their DEI programmes. Companies could use this moment to take stock, ensuring their initiatives are holistic, aligned with long-term strategic goals and informed by stakeholder views and experiences, while retaining the aspects that align with long-term strategic goals. Global organisations in particular may need to review their current programmes to ensure they meet the growing challenge of managing DEI across multiple geographies.
GoodCorporation supports clients with their diversity, equity and inclusion commitments through DEI policy drafting, training and e-learning projects as well as more broadly through our business ethics assessments, human rights work and workplace culture reviews. We are committed to working with integrity and supporting all of our clients in designing, building, embedding and assessing their ethics and compliance programmes, which continues to encompass the principles of DEI.
Nevertheless, we recognise the current uncertainty around DEI and are cognisant of the challenges faced by our clients, particularly multinationals. We commit to staying at the forefront of legislative and discursive changes in this sphere and helping our clients to stay abreast of them. The business case for DEI remains clear. The focus should be on maintaining the long-term benefits of truly inclusive corporate cultures, policies and programmes which benefit people and business alike.
Recommended approaches to managing DEI
- Comply with the laws in your jurisdiction: The evolving context of geographical and legal nuances has contributed to an ever-complicated DEI landscape. Compliance with the law remains the number one priority for all our clients
- Review the effectiveness of your DEI initiatives: Growing uncertainty around DEI is a perfect opportunity to strengthen your understanding of what is being done and why. GoodCorporation can help develop an effective DEI strategy. We provide support through policy and programme reviews, benchmarking of DEI programmes against clients’ peers or industry best practice or by supporting you to undertake DEI/culture surveys as a ‘temperature-check’ on these topics amongst employees
- Understand your company’s DEI landscape and be prepared to explain your approach: Before implementing DEI initiatives, it’s important to understand your target demographic, their needs, the historical barriers they face and what language resonates with them. Your approach should be based on a detailed understanding of your company’s unique DEI landscape and you should be prepared to explain the reasoning behind initiatives to employees, clients and other business stakeholders. This is most effective when informed by real data.
- Continue implementing DEI programmes in a meaningful way: DEI is constantly evolving, whether it’s shifting terminology or a new focus of emerging legislation. It is also more than avoiding liability and bad press. We encourage all our clients to continue developing targeted and data-driven DEI programmes that proactively address the needs of their employees and are better aligned to commercial strategy. This, in turn, promotes retention, wellbeing and productivity. Initiatives need to be integrated into daily actions and deeply embedded throughout policies and processes, rather than added on as an afterthought. It is also vital that impact is consistently measured and informs ongoing implementation.
- DEI language: The term ‘DEI’ is quite divisive in the current climate. The most effective language to use in any given corporate setting will always vary by industry, region and demographic features of stakeholders. If clients are concerned about terms such as ‘diversity’, concepts of “inclusivity”, “respect”, “belonging”, “opportunity” and “fairness” can instead be leveraged, based on relevance to the company. As firms re-evaluate what this means to them and the way the operate, greater focus should be placed on explanation and awareness-raising of what these terms mean in the context of their own operations, industries and workforces.
As we look ahead to see what’s next, it is clear that DEI will remain inherently dynamic. For organisations to benefit from the sustainable and competitive advantages DEI can bring, they will need to move with it, evaluating and revising their DEI strategies to ensure they continue to align with their core values and stakeholder needs, whilst remaining integrated into wider corporate strategy.
GoodCorporation offers a free DEI Framework to support organisations in developing, embedding or assessing their approach to diversity, equity and inclusion. It can be used internally or as the basis for an independent review, helping organisations strengthen their DEI practices and demonstrate progress. Download your copy of our DEI Framework below or get in touch to speak with our team about any DEI related enquiries.
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