Why Companies Are Dropping DEI—and How Smart Leaders Are Making It Irremovable
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This piece is part of an ongoing series responding to the wave of DEI rollbacks and resistance. Each article offers thoughtful strategies to help you lead in ways that increase diversity and retention—without harm. Pre-order The Equity Edge now and receive The Equity Edge Instructor Guide FREE—a limited-time offer designed to help you bring these practices into your workplace with care, courage, and clarity.
Something big is happening in corporate America. Over the past year, we’ve seen a growing trend: companies that once championed DEI are quietly pulling back. Some have slashed budgets. Others have removed DEI from their mission statements. And many have softened their language to avoid the backlash that DEI programs now seem to attract. And some are avoiding the term altogether, quietly rebranding their efforts under phrases like “culture and belonging.”
On the surface, it looks like businesses are abandoning equity work. But that’s not the full story. Most companies aren’t stepping away from DEI because they’re against fairness. They’re moving away because they don’t know how to do it in a way that includes everyone. They’re afraid of backlash, of getting it wrong, or of being perceived as favoring one group over another.
And when there’s no clear path forward, the easiest decision is to stop.
But here is the truth: DEI was never supposed to be something companies could opt in or out of. It’s not a political stance. It’s not a trend. It’s about something much deeper.
It’s about people.
DEI is Not Political. It’s Human.
At its core, workplace equity isn’t about politics. It’s about people. In my world of diversity recruiting, the ultimate goal is to hire individuals that have the best skills and can bring the most lived experience intelligence to the team.
Everyone—regardless of their background—knows what it’s like to feel excluded, overlooked, or unheard. Every employee wants the same things:
To have their ideas taken seriously.
To have a fair shot at growth and advancement.
To work in an environment where they feel valued.
DEI has never been about special treatment. It’s about making sure fewer people experience the frustration of being shut out of opportunities they’re qualified for.
Yet, when companies frame equity work as a “program” or a “DEI initiative,” it creates an artificial separation—like fairness is a separate add-on, rather than part of how a company operates. That’s a problem. Because when something feels optional, it’s easy to cut when times get tough.
But the companies that thrive long-term? They treat equity the same way they treat leadership development, innovation, or customer service: as a non-negotiable.
The moment we allow DEI to be framed as a divisive issue, we lose the real conversation. The conversation about how humans work, thrive, and lead together.
If DEI Can Be Removed, It Was Never Fully Integrated
Companies aren’t dropping DEI because they want to. They’re dropping it because they don’t know how to make it work in a way that doesn’t feel like an obligation. Or because it was never embedded in their systems in the first place.
Here’s the test: If removing DEI from a company means nothing really changes: hiring stays the same, promotions look the same, leadership still lacks representation, then DEI was never fully integrated.
When equity is truly part of how a business operates, it’s impossible to cut. No one is debating whether companies should:
Hire the best talent.
Retain great employees.
Make sure workers feel valued and supported.
Create teams that collaborate and innovate effectively.
That’s exactly what DEI is. The problem is that too many companies have treated it as an add-on rather than the foundation of a well-run business.
The Three Fears That Drive DEI Resistance—And How to Overcome Them
Most DEI resistance doesn’t come from opposition; it comes from fear. The Equity Edge is built on eliminating that resistance by addressing three key fears that cause companies to step away.
1. Fear of Change → Build DEI Into Leadership: Leaders struggle with DEI because they don’t know how to evolve it without controversy. Many are afraid of making mistakes, so they freeze.
How to fix it:
Stop treating DEI as a separate initiative. Instead, embed equity into leadership development, hiring practices, and retention strategies.
Make it a leadership skill set. If managers are trained to lead inclusively from the start, there’s no “extra” DEI work to maintain.
Tie it to what companies already value. If a company prioritizes innovation, make DEI about building teams with diverse perspectives for better problem-solving.
When DEI is framed as a core part of strong leadership, companies won’t see it as something separate—or something they can cut.
2. Fear of Getting It Wrong → Normalize the Learning Process: Many leaders disengage from DEI because they’re afraid of saying the wrong thing or being accused of bias. They don’t know how to approach it without stepping on landmines. That’s why companies need to create environments where learning and improvement are expected.
How to fix it:
Make DEI about psychological safety. The best workplaces create environments where employees feel safe to speak up, contribute, and be themselves.
Normalize the learning process. DEI isn’t about “getting it perfect.” It’s about continuous improvement—just like leadership, strategy, or any other skill.
Tell better stories. Facts alone don’t change minds. People connect with stories of impact—how equity has improved workplaces, strengthened teams, and transformed careers.
When DEI becomes part of the natural way leaders interact, mentor, and manage, it no longer feels like something risky. It feels like something essential.
3. Fear of Polarization → Tie DEI to Business Growth: Every company wants to grow. Whether you’re a local business, a national brand, or a global powerhouse, the goal is to reach as many customers as possible. And those customers come from every background, every race, every gender, and every ability.
Think about it—companies don’t limit their products or services to just one type of customer. They market to everyone. Or at least they want to. They sell to everyone. They design products and experiences meant to resonate with a broad audience. The companies that win in the marketplace aren’t just the ones with the best products. They’re the ones that understand their customers best.
So why would hiring, retention, and leadership development be any different, logically speaking?
If a company is committed to serving a diverse world, then it only makes sense to build a workforce that reflects that world. It’s not even a moral argument; it’s a competitive advantage.
Take Coca-Cola, one of the most recognized brands worldwide. In 2020, they reevaluated their supplier diversity program and ensured that the businesses they partner with are just as diverse as their customer base. They understood that representation is also about every level of the business, from leadership to supply chains to product development, in addition to being who’s in the boardroom.
Let’s set it straight: you can’t effectively serve a diversified audience if your workforce is missing the very perspectives that reflect that audience.
When businesses fail to remove hiring barriers that prevent a diverse range of talent from entering and advancing within the company, they’re limiting their workforce, true, but also limiting their ability to innovate, expand, and connect with the real world.
If your goal is to sell to America, hire America. If your goal is to serve a global market, build a workforce that mirrors that market.
That’s not a “DEI initiative.” That’s just good business.
But sure, things have changed in 2025. Companies don’t want to feel like they have to pick a side. They fear backlash from employees who think DEI isn’t enough and from those who think it’s gone too far. And for companies like Coca-Cola, which receive government contracts, aligning with the administration’s stance on DEI policies could be a strategic move. Any changes will only be disclosed in future Securities and Exchange Commission filings. Unlike Pepsi, which has removed references to a “diverse workforce” and “DEI,” Coca-Cola continues to acknowledge that DEI could impact business.
How to fix it:
Stop making DEI something that can be "added" or "removed." Instead of treating it as a program, integrate it into how companies operate.
Tie it to business goals. Companies don’t cut what makes them successful. If DEI is woven into retention, hiring, and leadership performance, it’s not a separate program—it’s how the company works.
Make it feel like common sense. No one argues against clear hiring criteria, fair pay, or making employees feel valued. That’s DEI.
When DEI is part of how leaders hire, retain, and lead, there’s nothing to “cancel” or “remove”—it’s just how the company functions.
The Equity Edge: The Future of DEI is Ingrained, Not Optional
Right now, too many companies see DEI as an extra program rather than what it truly is: a human-centered way of running a business.
We need to stop asking, “Should we keep DEI?” and start asking, “How do we make workplaces more fair, effective, and human-centered?”
Because when DEI is truly ingrained:
It’s no longer optional.
It’s no longer divisive.
It’s no longer something that can be removed.
It’s just how great companies operate.
And that’s exactly what The Equity Edge is about. It lays out the exact steps for making equity an unshakable part of your business—so you don’t have to worry about cutting it when the winds shift.
Want to learn how to build a workplace where talent flourishes, retention skyrockets, and increasing diversity and retention becomes a competitive advantage? Pre-order your copy of The Equity Edge today.
