Will D&I make a comeback?

Diversity and inclusion had its moment in 2020, after the brutal murder of George Floyd sparked public outrage and debate about systemic racism.

The business response fell somewhere on a spectrum from genuine reflection and commitment to change, through to panicked bandwagoning. Some said that they couldn’t see the business benefit to justify hiring a D&I (or, if you include ‘equity’, DEI) professional, but they largely kept that to themselves.

D&I boomed, particularly in large corporates. But as the years passed, disappointment followed for anyone hoping this was the beginning of a lasting change. The gender pay gap’s long retreat, for example, slowed as hybrid working, once celebrated as an equaliser for working mothers, left them out of sight and out of mind.

Then the backlash started. In 2023, Bud Light found itself on the wrong end of the US culture wars, when a marketing tie-up with trans influencer Dylan Mulvaney led to a mass boycott among certain segments of American society, costing the brand its long-held position as the country’s bestselling beer.

Disney, meanwhile, found itself embroiled in a high-profile battle with Florida governor Ron DeSantis over its opposition to the state’s ‘Don’t Say Gay’ law, which led to its theme parks losing legal privileges held for over 50 years.

Reading the mood, a spate of companies — from John Deere to Elon Musk’s X — have since either reportedly or officially reined back their D&I efforts, reducing funding and laying off staff. Most of this has been in the US, but there are signs of it on this side of the Atlantic too, with Asos notably severing the connection between D&I targets and bonuses.

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Where does that leave us?

Amid pressure to cut costs and doubts about its effectiveness, many firms question the return on investment from D&I initiatives. The fact that D&I has been so thoroughly politicised in the USA, and could still become so here, only adds to the quiet calls to tone it down.

But that doesn’t mean they don’t care about equality. Most CEOs I speak with would like to see a genuine meritocracy, hiring and promoting the best people for the job. They are also aware that this isn’t yet the case, with many would-be candidates never getting through because they don’t fit the conventional mould.

My advice to them is to not to abandon D&I hastily, or the equitable meritocracy that it exists to achieve. Its core message is too important, and ditching it would send a dire signal to your current and potential colleagues who don’t happen to be straight, cis, able-bodied, middle-class white men.

The most enlightened leaders have long understood that inequality costs, denying them the best people and widest range of perspectives, and disconnecting them from potential customers. And this will only get more difficult as our society becomes more diverse.

Many of us know that the implementation of D&I hasn’t been perfect but it is a noble goal. Imperfection is no reason to give up. Instead, it’s a reason to do it better.

That’s why I’m confident that, whatever happens, the spirit of D&I will remain in our collective consciousness – and that those who can combine meritocracy and diversity will make a lasting difference within their organisations and beyond.

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