A new survey by Resume.org claims that companies eliminating diversity, equity, and inclusion (DEI) programs are now hiring and promoting fewer underrepresented workers. To some, this may appear as vindication for those pushing to dismantle these programs. But dig deeper, and the study reveals something very different: proof that cutting diversity, equity, and inclusion not only harms diversity, it also damages morale, talent retention, and innovation.
The report’s own data shows that companies slashing diversity, equity, and inclusion are experiencing higher discrimination complaints, lower morale, and decreased attraction of top talent. That is not a sign diversity, equity, and inclusion does not work—it is a red flag about what happens when companies cave to political pressure and walk away from evidence-based practices.
Even more telling? Despite relentless political attacks and courtroom challenges, nearly all anti-DEI shareholder resolutions have failed, rejected by overwhelming margins at companies like Apple, Coca-Cola, and Berkshire Hathaway. The market is not buying what anti-diversity, equity, and inclusion forces are selling.
Let’s be clear: diversity, equity, and inclusion is not illegal. It is not a liability. And it is not some recent political fad. It is a structured approach, grounded in decades of civil rights law and business research, designed to ensure that people of all backgrounds have fair opportunities to succeed.
While the current federal administration has made headlines for issuing executive orders targeting diversity, equity, and inclusion in the federal government, these directives do not apply to private companies and their engagements in the private sector. And while they may encourage businesses to retreat, that encouragement is based on fear, not law. No federal statute has changed. No court has outlawed private-sector diversity, equity, and inclusion.
As a civil rights attorney who has spent my career defending equity in the workplace, I can tell you plainly: employers are still bound by the same legal obligations under Title VII, the Civil Rights Act, and state civil rights statutes. Nothing about these executive orders invalidates decades of precedent affirming that it is both legal and appropriate to foster diverse and inclusive workplaces.
Contrary to what some critics suggest, diversity, equity, and inclusion programs are not quota systems. In fact, quotas have been illegal for decades. These programs do not tell businesses who to hire—they help ensure that how they hire is fair. They are about removing barriers to opportunity, not imposing outcomes.
In this climate of fear and misinformation, some companies are making reactionary decisions based on politics rather than sound strategy. But in doing so, they open themselves up to far greater risks. Abandoning diversity, equity, and inclusion makes companies more vulnerable to civil rights litigation, less attractive to emerging talent, and more disconnected from today’s consumer base.
Even the Resume.org study proves that point. Companies that dropped diversity, equity, and inclusion report lower retention of underrepresented staff, fewer women and people of color in leadership, and overall morale declines. The takeaway should not be “diversity, equity, and inclusion failed.” It should be that gutting diversity, equity, and inclusion harms your workforce.
Meanwhile, employees, customers, and investors are watching. Countless studies continue to show that companies with diverse leadership teams outperform their peers in innovation, profitability, and market relevance. Diverse teams solve problems faster, build better products, and reach broader audiences.
The backlash against diversity, equity, and inclusion is not about performance—it is about power. Political actors are weaponizing fear to undermine progress. But businesses are not required to follow them off a cliff. In fact, they have every reason— legal, financial, and reputational — to stay the course.
We have seen this playbook before. During the civil rights movement, many institutions resisted integration under the guise of legal uncertainty. But history does not look kindly on those who bowed to pressure and abandoned justice. Business leaders today face a similar choice.
Yes, there are political headwinds. Yes, there are legal battles on the horizon. But that is not new. What is new is the attempt to frame diversity, equity, and inclusion as the threat, rather than what it truly is: a strategic imperative, a best practice for statutory legal compliance, and a fundamental platform for sustaining businesses and growing market share in the 21st century.
Rev. Dr. Martin Luther King Jr. once said, “The ultimate measure of a man is not where he stands in moments of convenience and comfort, but where he stands at times of challenge and controversy.” Business executives: this is your moment.
Do not retreat. Do not give in to fear. And do not mistake a loud minority for legal or economic truth. The facts, the market, and the future remain on the side of equity.
Alphonso David is a civil rights attorney, co-counsel to the Fearless Fund, and the President and CEO of the Global Black Economic Forum.