How Political Polarization Killed Inclusivity

Businesses have retreated into silence, undermining the very goals of inclusion and equity that DEI programs are designed to promote.

In recent years, diversity, equity, and inclusion (DEI) have become essential components of corporate culture. Many companies implemented DEI initiatives, understanding the value of a diverse workforce in driving innovation, improving employee satisfaction, and fostering an inclusive environment.

However, rising political tensions in various regions are increasingly putting DEI initiatives at risk of being undermined. The Trump administration’s executive orders are forcing companies to take a stance. While some companies, such as Costco, continue to publicly embrace DEI as part of their corporate values, others are retreating, attempting to remain neutral.

Skewed Language

At the core of this polarization is an attempt to skew the language itself with some politicians arguing that DEI is either too politically motivated or that it undermines meritocracy. The result is they have convinced people that the terms diversity, equity, and inclusion are inherently exclusive, and create an unfair advantage for identity groups such as people of color and women. Operating under an “us versus them” mentality, some suggest that DEI is about hiring underrepresented populations over their peers regardless of qualifications.

DEI Gone Wrong

Ideally, organizations should not need DEI departments or protective legislation for different identity groups. The current administration’s desire to erase historical and contemporary truths and initiatives proves the need for DEI even more. Prejudices and biases in the workplace still exist, so companies need departments to address those issues and help keep organizations accountable.

As political leaders continue to scrutinize corporate DEI policies, fear of retaliation is shaping corporate behavior. Companies in politically charged regions are often caught between trying to uphold their commitment to DEI and meeting the demands of local governments. Some companies have scaled back or abandoned DEI training programs altogether, fearful that they may be seen as partisan or overly progressive. Others have avoided making public statements on DEI issues so as not to alienate potential customers or employees. The result is a chilling effect, making companies reluctant to take bold action on DEI initiatives despite internal support.

Youthful Expectations

Many Gen Z and millennials prioritize work-life balance, growth opportunities, and an inclusive culture when selecting an employer. According to a 2024 Deloitte study, 75% of Gen Zs and millennials say that an organization’s community engagement and societal impact is an important factor when considering a potential employer.

Some studies even cite businesses that fail to address these concerns create risks of losing talent and revenue to competitors who are seen as more progressive. This same study highlights that 50% of Gen Zs and 43% of millennials say they have rejected an assignment or project based on their personal ethics or beliefs. There is a strong desire to have DEI as a core value, not just an initiative.

Simultaneously, people who do not want DEI initiatives are negatively citing businesses that address these issues. This could create some legal risks and an environment where businesses are in a lose-lose situation. If a company embraces DEI, it risks being accused of pushing a political agenda. If it avoids DEI, it faces the backlash of some consumers and employees who will cite the company for folding to a political agenda. Therefore, politicians have orchestrated “mass racial hysteria,” by politicizing the well-being and identities of humanity.

Despite the challenges posed by the political landscape, companies can take steps to continue properly advancing DEI. First and foremost, businesses should commit to long-term strategies that include standing by your core company values, embedding them into the way you do business, and ensuring that leadership at all levels is accountable for driving progress.

Additionally, companies should engage with employees, customers, and stakeholders to help mitigate the risk of backlash and maintain a focus on creating a workplace where all individuals are treated with fairness and respect. Silence and lack of transparency give space for internal stakeholders to create their own narratives about where the company stands.

Ultimately, the political winds may continue to shift. But companies that remain steadfast in their commitment to investing in, valuing and celebrating their employees will be better positioned to create positive change and lead the way toward a more inclusive future where everyone can thrive.

JAMES PRYSOCK, III, MBA, is a business consultant, educator and designer and currently serves as Senior Diversity, Equity and Inclusion Manager for the Bath and Body Works Corporation.