How to Defend DEI in Your Workplace—and Why It’s a Business Imperative

What should I do? This is the question many employees are asking as they digest the two executive orders President Trump signed on day one of his Presidency—one of which directs agencies to scrutinize DEI efforts at publicly traded companies.

As a valued employee, there is a lot you can do to influence leadership to stay on a path that fosters an environment where people from all backgrounds can add value to shareholders.

I use the term "add value to shareholders" very specifically. Why? Because publicly traded companies and their senior leaders have a fiduciary responsibility to prioritize actions that do just that.

The good news?

Having a diverse workforce is in the best interest of shareholder value and positioning your arguments for staying the course with driving a diverse and inclusive workforce through the lens of shareholder value is critical.

Let’s talk about a few arguments through the lens of shareholder value:

Recruiting Top Talent:

If your firm hires people with college degrees, according to the National Center for Education Statistics (NCES), women made up approximately 58% of undergraduate students in 2022, and this majority is expected to sustain through 2031. Further, by 2045, the U.S. will become a “majority-minority” country, meaning no single racial or ethnic group will comprise a majority (US Census Bureau).

When leadership cuts programs designed to attract diverse applicants, your employer brand and reach take a major hit—limiting your ability to recruit from a significant pool of top talent.

That top talent goes to your competitors, opening a big, bright 'blue sky' for them to launch new products and take market share.

Risk Management:

In the financial services industry, avoiding “fiasco” outcomes is just as important as achieving strong returns. Diversity reduces the likelihood of catastrophic decisions, making it an essential tool for risk management. Carlyle’s research paper titled “Diversity as Excellence in Risk Management” shows that homogenous teams are 2-3 times more likely to generate poor investment outcomes due to groupthink, where unchallenged assumptions lead to risky decisions. In contrast, diverse teams foster critical analysis, reducing overconfidence and blind conformity.

Reflecting on the subprime-mortgage crisis of 2008, one must wonder: were the decision-makers so aligned in their perspectives that no one questioned the downside risks of their actions? A lack of diverse viewpoints likely blinded them to the real-world impact of their decisions, particularly on populations they didn’t represent or understand. Wealthy, predominantly white men were making decisions that disproportionately affected lower-income, racially diverse communities—a disconnect that likely contributed to the catastrophic miscalculation of risks.

Employee Engagement and Retention:

Senior leaders are laser-focused on employee engagement and retention. This focus drives return-to-office policies and explains why Mark Zuckerberg recently retitled Meta’s Chief Diversity Officer, Maxine Williams, as Vice President of Accessibility and Engagement. But as we know, humans thrive on community and a sense of belonging. A Gallup study found that employees in companies with strong DEI initiatives report significantly higher job satisfaction and are 50% less likely to leave their jobs compared to those in organizations without such efforts. Inclusive workplaces foster better collaboration, higher innovation, and lower turnover—critical drivers of long-term success.

When these programs are eliminated, the sense of community and purpose they create often disappears as well. This leads to disengaged employees, reduced productivity, and higher turnover. The most talented individuals leave to join competitors, taking institutional knowledge with them and leaving managers scrambling to fill the gaps, creating inefficiencies and compounding the problem.

Consumer Demographics and Market Share:

The U.S. consumer landscape is rapidly evolving, driven by the increasing economic influence of diverse populations. Hispanic Americans, for instance, contribute over $2 trillion annually?to the U.S. economy, making them one of the fastest-growing consumer groups. Similarly, Black Americans account for $1.6 trillion in spending power, with significant growth projected in the coming years. These populations are shaping the future of consumer demand across industries—from technology and media to healthcare and retail.

Companies that fail to build diverse teams risk missing critical insights into these high-growth markets. A team that reflects the communities it serves is better equipped to design products, craft marketing campaigns, and create experiences that resonate with diverse audiences. Conversely, homogeneous teams are more likely to default to assumptions that miss the mark, alienating potential customers and leaving revenue on the table.

So, What Should We Do?

Now is the time to act—not retreat. Diversity and inclusion are not just ethical priorities; they are business imperatives that drive shareholder value and align with the law. While political and legal challenges create uncertainty, they also highlight the need for well-designed diversity recruiting, engagement, and retention programs that align with legal standards and protect against discrimination.

Here are actionable steps to guide your efforts:

Focus on Business Impact: Lead with the facts: DEI strategies strengthen the bottom line by improving retention, fostering innovation, and reducing risk. Center your advocacy on measurable outcomes, like increased productivity and better decision-making, that resonate with senior leadership. Frame these strategies as essential for staying competitive and driving shareholder value.

Engage Leadership and Build Allies: Identify senior leaders who care about these issues and equip them with the tools to advocate effectively. Provide data, case studies, and actionable strategies so they feel confident championing DEI in high-stakes decision-making settings.

Understand the Legal Landscape: Understanding these frameworks ensures your firm's efforts remain legally compliant and resilient, even in challenging political climates.

• Title VII of the Civil Rights Act of 1964: This foundational law prohibits discrimination based on race, color, religion, sex, or national origin. Hiring and retention programs that expand opportunity without creating quotas are fully compliant with this law.
• The Americans with Disabilities Act (ADA)?and Equal Pay Act of 1963: These laws support initiatives focused on accessibility and addressing pay disparities.
• Recent Affirmative Action Rulings: While Supreme Court decisions have narrowed the use of race in college admissions, private sector employers retain flexibility to pursue DEI efforts that expand opportunities and ensure fair hiring practices—provided they avoid explicit quotas or reverse discrimination.

Support Employee Resource Groups (ERGs)—Even If You’re Not in One You don’t have to be part of an ERG to support its mission. Reach out to ERG leaders, offer to help, and amplify their efforts. Your involvement strengthens the broader push for inclusivity, helping to create a culture where all employees thrive.

A Final Call to Action

Let’s face it—we’re in for a challenging road ahead. I know many people feel exhausted from constantly pushing uphill to drive change.

But what I’ve always loved about this work is the resilience and collective effort that emerges when we commit to fighting for what matters. Building a thriving American economy through businesses that value and reflect the diversity of this country is a fight worth having—and it’s one our children deserve us to protect.

We got this.