A Dream Beyond DEI

A Dream Beyond DEI

There is an ironic twist in Donald Trump’s second inauguration, on Martin Luther King Day. Yet this can also potentially provide a new impetus to help us Bridge Divides. We need to start by first acknowledging how, at the conception stage itself, we went wrong on diversity, equity, and inclusion (DEI). Is there now an opportunity to return to the essence of what, I believe, has been the true intention all along—respect for ALL people, through and along with our differences?

Let’s be clear: there was nothing “inclusive” about DEI. It led to more shame and blame than increased awareness and understanding of the systemic divides that must be addressed. It led to labels such as white fragility and unconscious bias getting in the way of true, open, and honest conversations from all people.

By 2020, most U.S. corporate boards said “yes” to DEI as a risk management strategy. It was trendy. At the start of 2025, most are saying “no” to DEI in response to a new, more potent Trump administration and the U.S. Supreme Court's position.

The Business Case Since 2020

Despite many studies highlighting the business benefits of diversity in the workforce, DEI has failed to win broader and sustainable buy-in. As far back as 2011, a Forbes study revealed that 56% of companies with more than $10 billion in revenue found that their diverse workforce significantly drove innovation within their organization. In 2020, a McKinsey study showed that companies leading in cultural and ethnic diversity are 36% more profitable than their least diverse counterparts.

DEI-related spending peaked in 2020 in response to the social justice movements. The 50 largest public companies in the U.S. pledged at least $50 billion to combat racial inequality. Five years later, little is said about the status of this commitment. It’s fair to assume those companies had a change of heart.

These investments included hiring Chief Diversity Officers, expanding DEI departments, and implementing extensive training programs. Companies have been spending an average of $8 billion annually on DEI training. Many have adopted new recruitment and retention strategies to improve organizational diversity. Companies have also focused on setting up mentoring and sponsorship programs to support career advancement for underrepresented groups. They have invested in technologies to enhance the fairness and inclusiveness of their hiring processes.

Entering 2025

Even before Trump’s election victory, many companies moved on from DEI.

It is important to note that some prominent corporations are trying to combine a ‘partial exit’ from DEI by trying to show they are staying committed to the intentions of DEI.

McDonald’s is retiring from setting aspirational representation goals and instead focusing on continuing to embed inclusion practices that grow the business into everyday processes and operations. It is also pausing external surveys, and instead, it will focus on the work being done internally to grow the business. Instead of a Supply Chain Mutual Commitment to their DEI pledge, McDonald’s now favors a more integrated discussion with suppliers about inclusion regarding business performance. Then there are some semantics: their diversity team will now be called the Global Inclusion Team.

While McDonald’s is retiring specific goals for achieving diversity at senior leadership levels, it remains committed to inclusion and believes a diverse workforce is a competitive advantage.

Walmart’s shifts are more dramatic. The world’s largest retailer confirmed in November that it would not be renewing a five-year commitment to an equity racial center set up in 2020 after the police killing of George Floyd and that it would stop participating in the Human Rights Campaign’s annual benchmark index measuring workplace inclusion for LGBTQ+ employees.

Walmart also said it will better monitor its third-party marketplace to make sure items sold there do not include products aimed at LGBTQ+ minors, including chest binders intended for transgender youth.

Additionally, the company will no longer consider race and gender as a litmus test to improve diversity when it offers supplier contracts. It will also not gather demographic data when determining grant financing eligibility.

Ford exited DEI in August 2024, following Lowe’s.

CEO Jim Farley sent a memo to the automaker’s employees outlining changes to the company’s DEI policies, including a decision to stop participating in HRC’s Corporate Equality Index and some “best places to work” lists. The company doesn’t use hiring quotas or tie compensation to specific diversity goals but remains committed to “fostering a safe and inclusive workplace,” Farley said. The memo said...

“We will continue to put our effort and resources into taking care of our customers, our team, and our communities versus publicly commenting on the many polarizing issues of the day."

More companies, including Meta and Amazon, are exiting than staying the course as conservative opposition to such initiatives grows louder.

Among the few who are staying the course is Apple. The company’s board of directors recommended that investors vote against a shareholder proposal to abolish the company’s DEI programs.

Nike shares key metrics in their 2025 Targets Summary: "Over the next five years, we will bring our purpose to life through 29 targets focused on people, planet, and play.” They lead with “50% representation of women in the global corporate workforce and 45% in leadership positions.”

Despite an “oops” media moment earlier in 2024, Microsoft continues to focus on “Increasing representation for women and racial and ethnic minority groups at more senior levels, combined with maintaining pay equity for all, will continue to reduce the median unadjusted pay gap.”

Guidance for C-Suite Leaders in A Post-DEI Era

Rather than merely lamenting the reverses, the business eco-system must acknowledge that DEI created more separation than inclusion in practice. It created a broader “us” and “them” gap by fostering a binary view of social reality and the desired goals. It thus added to other trends that have created a highly polarized world – almost akin to the binary 0s and 1s on which software engineering is founded.

We could start by recognizing that the issues DEI intended to solve are on a spectrum and thus not made up of either/or situations. True DEI work calls for thoughtful discernment by stakeholder groups, with deep listening instead of jumping to conclusions, making accusations, and seeking a quick fix. No wonder DEI created mass anxiety about what to say or not say. This left all of us walking on eggshells.

So, where do companies go from here?

Here are some ideas that could take C-suite-level leaders beyond what their legal counsel recommends.

Get Clear on Your Intent

Most DEI strategy statements have been focused on diversity. Instead, apply the five whys approach. By asking why five times to the starting intent statement it helps to clarify your true intent. For instance, if you intend to increase the representation of women senior leaders, ask why five times to get to the heart of why that would benefit your company and all stakeholders. Each why dives deeper into the previous response.

Dream Your Desired Impact

Ask yourself: Do you commit your company and all stakeholders to craft your version of Martin Luther King’s “I Have a Dream” speech? Once you lock on the dream and its spirit of reconciliation and well-being, a far more effective strategy becomes possible, if not inevitable. Do that.

Drop the Lingo

Social media and the divide on DEI have been riddled with jargon. Stop people when they hide behind words like “woke,” cancel culture, target/non-target, marginalized, white fragility etc., etc.

Instead, commit to going deeper. If someone uses these terms, ask: What does that mean to you? How does that impact you? How do you feel about that? Is this approach creating divides in the name of inclusion? How can we bring more people together with an empathic approach? What would a better way that works for all look like?

Above all, don’t shame those who use these terms. Instead, reframe them.

Drop Check-The-Box Activities

One big plus of the new administration in Washington, D.C., is that it will force more companies to stop public posturing activities. From generic training to scripted responses – drop it. Instead, get real. Speak your truth respectfully while resisting pressures to become perfect. It’s messy work.

Take A Stand

Often, liberal-oriented companies got a lot of press when they took a stand, e.g., Nike vs. Bud Light in 2023 on supporting a transgender influencer. Nike was genuine about it. Bud Light forgot its primary buyer, conservative America. It backfired big time.

Instead, Chick-fil-A comes to mind. They are proud of their religious beliefs. All stores are closed on Sundays. Good for them. It works for their loyal customer base. Plus, they commit to DEI as an equal opportunity employer and do not tolerate harassment. I imagine the reference to DEI will go away or shift, but their intention seems sincere.

Respect for ALL People

To me, it’s simple – it’s about genuine respect. Mutual respect. It’s not about “let’s agree to disagree” or passive aggressiveness. It’s not about teaching people about target and non-target groups or unconscious bias. It’s about genuinely understanding other perspectives without seeking to change another’s perspective.

Respect is a fundamental human need, not a ‘want.’ It even comes before trust. Respect is often assumed or implied – it is usually not tangible or like a photo that can be framed and hung on a wall. I argue that it needs to be explicit. Shed light on your organization’s current state of respect and be real about it.

As an Indian-American privileged male leader, I hurt for my many white male friends and colleagues who have felt marginalized. Here’s an example:

A senior white male leader, at a major company we all know, was attending a DEI conference at the company headquarters. He has to slip out early to present to the C-suite. As he gingerly picked up his laptop to quietly exit, this happened… The black women TV anchor who was moderating a panel discussion on the stage called out “Hey white guy, what do you think (of the topic they were on)?” And then we wonder why we haven’t made progress.

To truly respect all people, we must respect ALL people. Loretta J. Ross nailed this in her TED talk, “Don’t call people out—call them in.”

Say What Needs to Be Said, With Respect

So how do we deal with the eggshells? Imagine if we dared to dance on eggshells. Yes, it would be messy. We would make lots of mistakes. Yet it will all work out if it shifts us to a growth mindset of learning through conversations with others. If there’s training needed, it’s on how to have challenging conversations, not telling you what to think or say, but “simply” how to navigate conversation many leaders avoid. Learning deep listening is possible, but it's not rocket science.

Over decades in the American corporate world, I’ve learned that the most important thing I can do is to be open, direct, and respectful. This applies globally and has cultural implications to consider.

MIT Sloan Review’s research has shown that disrespect has the most significant negative impact on work culture.

Being respectful does not mean you hold back on your views. It simply means speaking your truth and being willing to hear the other person’s views. This enables us to reach the core human desire to be seen and validated. This is the hidden, disfigured need that surfaces in the appearance of hate and fear.

Share Your Perspectives

Thank you for reading this piece. It came through me yesterday as I realized the irony of January 20, 2025, being both Trump's inauguration and Martin Luther King's Day.

I invite you to share your thoughts in the comments:

• What resonated for you?

• What did not resonate?

• What is your dream beyond DEI?

Stay tuned for my next article, outlining why I created The RESPECT Quotient™.

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To those already subscribing, thank you. I will posting articles more frequently in 2025.