When diversity, equity, and inclusion (DEI) issues make headlines almost daily, is that a "good thing"? Since 2020, the answer to this question has remained unresolved.

This summer was turbulent for the DEI field: first, the Society for Human Resource Management (SHRM) renamed its DEI function, dropping the word "equity"; then Microsoft laid off two redundant DEI team members, a move misinterpreted as "completely eliminating its equity and inclusion functions." Meanwhile, a conservative activist is deeply investigating the DEI commitments of several major corporations, demanding they publicly retract their positions or face boycotts.

So, looking ahead to 2025, where is DEI headed?

A summer of "dismantling"

July was particularly intense: shortly after Tractor Supply's announcement, John Deere publicly stated it would withdraw from all "social or cultural awareness" activities. Then, following a month-long pressure campaign by Robby Starbuck—who was also a catalyst for some of the rollbacks—Harley-Davidson announced it was scaling back DEI programs and stated on X that it had no longer had a DEI function since April 2024. The parent company of Jack Daniel's followed suit, announcing similar adjustments to its talent strategy. Ford and Molson Coors also announced adjustments to their DEI strategies, which Starbuck counted as his "victories."

Amid corporate rollbacks, the University of Kentucky and the University of North Carolina at Charlotte also disbanded their DEI centers and reassigned employees. These decisions stemmed from concerns over the 2023 Supreme Court ruling ending race-conscious admissions and pressure from conservative lawmakers.

Bridging the consumer perception gap

A 2024 Morning Consult report shows that gender, age, and political affiliation influence individuals' views on DEI roles in the workplace. The report also notes that these identity factors determine whether a person has heard about DEI rollbacks.

Contrary to the backlash on X that led to cuts in inclusion programs, another survey found that 8 out of 10 LGBTQ+ individuals said they would consider boycotting a company if it abandoned its DEI commitments. This result was collected by the Human Rights Campaign, whose Corporate Equality Index faced repeated cyberattacks and internal memo challenges this summer, with several companies announcing they would no longer participate in the index.

On how to communicate the value of internal DEI commitments externally, Donnebra McClendon, Global Head of DEI and Vice President at Dayforce, said the key is understanding what consumers and shareholders want to see. "Often, they want to see innovation," she said, "they want to see profitability and growth."

"We know DEI is a driver of both. It helps drive innovation, leads to better products, and generates stronger thought leadership in problem-solving," McClendon said.

She believes data helps bridge this perception gap. "But here's the tricky thing about data: you usually can't get it overnight; building data takes time, right? So you have to be able to tell your story along the way," McClendon said.

Dispelling the myth of "reverse racism"

A common misconception is that diversity and equity initiatives are a form of discrimination or "reverse racism."

In response, Jennifer Martinez, Chief Diversity, Equity, and Inclusion Officer (CDEIO) and Partner at Hanson Bridgett, said: "What do people actually think racism is? Is it us treating people fairly? Is it us wanting employees to feel included? Or is it us recognizing the value of a diverse workforce? I'm not sure which part of that is racist."

Martinez further noted: "The view that DEI initiatives are racist, are quotas, or lower standards is a fundamental misunderstanding of what DEI programs are about. I might even call it a deliberate misrepresentation."

On race and other identity topics, Martinez suggested that resources created for a specific identity group often broadly benefit everyone. Take the Americans with Disabilities Act, for example: "Its purpose is to acknowledge that this group faces certain biases and barriers in public facilities and the workplace," she said, but it has the potential to create resources that benefit all. Martinez also mentioned that curb ramps designed for wheelchair users also make it easier for parents pushing strollers.

"I think that's true for most DEI initiatives," she said.

The future of DEI

When asked about the state of DEI after a summer of rollbacks, McClendon said she is "cautiously optimistic." She acknowledged the power of DEI programs in practice and said: "People's perspectives are changing. I think it's important to be aware of that when doing this work."

McClendon explained her understanding of these adjusted commitments: "I think many organizations made hasty commitments at the start, and now a few years later, we're seeing the impact of those commitments, and perhaps it's time to reassess," she said. "Again, I'm an advocate for DEI; this is work I love," McClendon said, "but understanding the scope of the work is never a bad thing."

Judy Ellis, Senior Vice President of Global Diversity, Equity, Inclusion, and Belonging at AMS, expressed concern about the rollbacks. Nevertheless, Ellis said that across most, if not all, of her global clients, she sees a steadfast commitment to diversity and inclusion.

"They understand that DEI initiatives have profound, long-term implications for their potential workforce composition," Ellis said. "This matters because having all the best and brightest talent is what meets the needs of an organization's consumers. They see it as a strategic business imperative, so they continue to push forward."

Ellis's global perspective allows her to see different aspects: she highlighted regional differences in diversity focus. For example, employees in the UK often focus on disability inclusion, neurodiversity, and generational diversity. Clients in Latin America, she said, "are not as mature in diversity as the US and some other clients," but are focusing on achieving gender parity at the highest management levels.

She observed that the US still focuses on race and ethnicity. "I see it still on the agenda for US clients; however, they are shifting and ensuring compliance," Ellis said.

Expert advice: "Bring your own lunch"

The key is endurance. "When I first started in this specific role in organizations, I used to tell people, look, bring your own lunch; this takes time," McClendon said, reiterating that data collection, storytelling, and organizational culture change all take time.

She observed that in recent years, many people have entered the DEI field without a deep understanding of the work. "I remember those unconscious bias trainings that were almost worthless," she said. "But what's the next step? What do we do when we've done all that and still haven't seen the big changes in organizations that we hoped for?"

"That's not the time to run away," she said. "It's the time to double down and understand that cultural shifts take time."