These changes led to the birth of Diversity, Equity, and Inclusion (DEI) and DEI management. Although the terms diversity, equity and inclusion are often interconnected, it is important to recognize their individual definitions and impacts.  McKinsey and Company recognize that diversity refers to who is represented in the workforce. Examples of diversity in the workforce include gender, age, ethnicity, physical ability, and neurodiversity.  Equity refers to “fair treatment for all people, so that the norms, practices, and policies in organizations ensure identity is not predictive of opportunities or workplace outcomes” (McKinsey and Company). This concept takes into consideration a person’s unique circumstances and adjusts treatment so that the result is equal. Inclusion refers to how the workforce experiences the workplace and the “degree to which organizations embrace all employees and enable them to make meaningful contributions” (McKinsey and Company). Efforts to include diversity, equity, and inclusion into the corporate world led to DEI management, best described as “the process of identifying, acquiring, developing, deploying, and integrating diverse perspectives throughout an organization” (Kinicki).

The numbers don’t lie.  Research study after study found that companies that integrated diversity, equity, and inclusion had a positive impact on business performance.  Additionally, a recent diversity report found that most employees support diversity—the greater the representation of gender diversity, the higher the likelihood of outperformance. Another study found that 95% of CEOs acknowledge that their companies focus on diversity, equity, and inclusion. This reinforces the importance of representation that matters to current and potential employees.  Further, diversity is important to job seekers and employees, with 75% of survey respondents citing diversity as a key factor used in evaluating the effectiveness of job offers. Additional benefits from effective Diversity, Equity, and Inclusion management include improved decision making, increased employee satisfaction and motivation, as well as improved organization image.  Based on all the research on DEI, it would seem a no-brainer to integrate diversity, equity, and inclusion so that organizations could reap its rewards.  Yet, that’s not happening.   

So, what is the problem? Gone are the days of pro-diversity, equity, and inclusion. Progress on building diverse workforces has met with challenges, with some organizations demonstrating high levels of negative sentiment on equality and fairness of opportunity.  There appears to be an anti-diversity movement based on a “woke” culture mentality. In 2024, well known farm equipment manufacturer and staple of rural America, John Deere, says “it will no longer sponsor ‘social or cultural awareness’ events, becoming the latest major U.S. company to distance itself from diversity and inclusion measures after being targeted by conservative backlash” (Grantham-Phillips).  The company further stated it would also make sure that its training materials are “absent of socially motivated messages” (Grantham-Phillips) and eliminated its DEI roles. Instead, the John Deere Company is reinforcing that diversity quotas and pronoun identification were never part of its corporate policy.  John Deere Company is not alone. Similarly, rural retailer Tractor Supply terminated its corporate diversity efforts. Google and Meta have also cut staffing and downsized DEI programs.  Now it’s time to pay attention.

What’s going on?  Diversity, Equity, and Inclusion—once a key tenet in successful business practices—is under attack.  Buoyed by the 2023 Supreme Court ruling that ended affirmative action in college admissions, activists are leading a change into a new anti-DEI realm. It will be very interesting to see how organizations attempt to recoup the benefits of DEI management with the changing business climate. The future of DEI? Cloudy with a chance of upheaval.  

Please note that this article contains the views of the author and not necessarily those of McGraw Hill.