Beyond the Buzz: How Companies Are Really Navigating DEI

As General Counsel, you’re often flying in complex conditions, juggling legal, regulatory, and reputational risks. When it comes to Diversity, Equity, and Inclusion (DEI), the media headlines can feel like the instruments in a helicopter cockpit—vital when visibility is low, but if the skies are clear, it pays to look outside and see what’s really happening.

Lately, the news has been blaring about a seismic shift: a 15% drop in DEI mentions in early 2025 filings, companies like Walmart and Goldman Sachs rolling back programs, and a new executive order tightening federal DEI policies. Some pundits call it a retreat; others see it as a reckoning. But if you want to understand where DEI really stands—and guide your organization accordingly—you can’t rely solely on those gauges. Sometimes, you have to glance outside the cockpit.

In 2020, many companies issued expansive DEI disclosures, complete with metrics and commitments. By 2025, the approach has shifted. Apple, for example, still includes DEI content but weaves it into governance discussions rather than giving it a solo spotlight. JPMorgan Chase has replaced “DEI” with “Workforce Composition,” continuing the data while toning down the rhetoric. Walmart tucks references into its risk factors, and Exxon Mobil barely addresses the subject.

The numbers tell us a 15% drop in DEI mentions, but it’s not a one-size-fits-all scenario. Some organizations have dialed back explicitly. Others have reframed their language to avoid drawing fire. So, while instruments (i.e., headlines) may register a drop, the real question is what you see when you look out the window—companies are still flying, just at different altitudes.

Headlines might scream that DEI is on life support. Forbes points to “dumped” programs, and ESG Dive notes that 1 in 8 companies plan to soften commitments. Yet, if you peel back the layers, you’ll see that Apple shareholders shot down an anti-DEI proposal with 63% support earlier this year. Target reduced its DEI mentions by 30% but still reports demographic information (albeit with vaguer language, likely to sidestep litigation risks). Citigroup traded “DEI” labels for “workforce” language but kept the substance of its efforts intact. This is less about abandonment, more about adaptation.

We also can’t ignore the regulatory weather patterns. The 2023 Supreme Court ruling against race-based admissions didn’t directly target corporations, but it sparked lawsuits claiming DEI initiatives are “illegal.” The January 2025 executive order limiting federal DEI has made private-sector contractors proceed with caution. And although the SEC is pushing for greater human capital disclosure, the partial rollback of the Nasdaq diversity rule in December 2024 loosened board diversity requirements. Add in a patchwork of state laws—some pushing for more DEI, others banning it—and you see why organizations might tweak their language or reporting structures. Media outlets often amplify the extremes, but most companies are taking a middle path, carefully navigating the clouds.

What happens to DEI initiatives if powerhouse investors like BlackRock or Vanguard can’t exert the same pressure through proxy votes and board push? This new reality might show up as a dip on the news radar, but look out the cockpit window, and you’ll see companies retooling their strategies rather than grounding them entirely.

Tech players like Microsoft and Intel have dialed back explicit DEI references, rolling them into broader human capital or “Our People” discussions. Financial firms such as Morgan Stanley are toning down their language, staying neutral to avoid scrutiny. Retailers like Target are swapping the term “DEI” for “inclusion,” balancing consumer sentiment with potential legal pitfalls. Utilities like Southern Company keep it low-key, and Berkshire Hathaway never really took off on the DEI front in the first place. The media lumps these variations together as a “DEI decline,” but it’s more nuanced. Each industry is navigating its own airspace.

Key Takeaways for General Counsel

1. Don’t Fly Blind on Headlines. A sensational story about Walmart closing its Racial Equity Center might suggest DEI is falling from the sky—but read their filings, and you’ll see diversity addressed in risk factors. Goldman Sachs dropping a “Diversity and Inclusion” section grabs attention, yet workforce data remains. These aren’t crash landings; they’re strategic repositionings.
2. Know the Conditions. That 15% overall drop is real, but it doesn’t tell the full story. Some organizations, like Exxon, barely engaged with DEI to begin with. Others, like Microsoft, have pivoted from loud statements to more moderate language. Broadridge, for example, is incorporating DEI into human capital discussions—hardly a sign of complete withdrawal. Legal risks and lawsuits are shaping the flight path, but they haven’t forced a total grounding of DEI.
3. Trust but Verify Your Instruments and Look Outside. Yes, pay attention to shifting investor priorities and regulatory updates—that’s your instrument panel. But also look outside the cockpit. Check filings, shareholder votes, and real-life corporate practices. If a company renames its DEI efforts “Workforce Composition” or simply “Inclusion,” the substance might still be there. Headlines offer quick signals, but ground truths are found in the footnotes and risk sections.

DEI isn’t crashing; it’s course-correcting. Regulations, investor power, and public sentiment shape the flight path, but few companies abandon ship entirely. For General Counsel, the clear skies come when you supplement what the “instruments” (media buzz) tell you with an actual look outside the window—scanning governance structures, reading between the lines in disclosures, and tracking what’s really changing on the ground.

So, when you’re flying in the clouds, by all means, trust your instruments. But if the weather’s good, don’t forget to look outside and see where the winds are actually blowing. That’s how you’ll navigate the DEI landscape without getting lost in the headlines.