Diversity, equity, and inclusion (DEI) have been more than just corporate buzzwords in recent years; they’ve arguably been the pillars supporting a progressive shift in workplace culture across North America. Yet, a loud pushback is emerging, particularly in the United States, and its reverberations are echoing strongly in Canada as well.
This week Walmart, the world’s largest retailer, announced a significant rollback of several DEI policies. Facing pressure from conservative groups in the U.S., the company has decided to stop using race and gender as criteria to increase diversity in supplier contracts and will no longer collect demographic data for financing grants. They’ve also discontinued racial equity training from the Racial Equity Institute and withdrawn from prominent equality indexes.
In a statement shared with ABC News, Walmart emphasized its long-standing mission to serve a diverse customer base: “We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers, and to be a Walmart for everyone.”
Walmart isn’t an isolated case. Even HR associations are trimming their sails to navigate the changing winds. In July, the Society for Human Resource Management (SHRM) in the in the U.S. rebranded “DEI” to “Inclusion and Diversity,” citing that traditional DEI programs are not yielding the desired results and are, in fact, facing societal backlash.
“Broader society is asking for us to help sort this, and workplaces are demanding that we fix this vexing social issue,” said Johnny C. Taylor Jr., president and CEO of SHRM. “If we think that the game we played over 30 years, which is to make some people feel badly about what they have done, or their ancestors have done or whatever, if you think that’s going to solve the problem? It didn’t work over 30 years. We’ve got to adapt a new approach.”
What’s fueling the pushback?
Several factors are contributing to the anger directed at diversity programs. For some, DEI practices have been seen as divisive, creating an “us versus them” mentality within organizations. Others perceive these initiatives as token gestures rather than meaningful change, leading to skepticism about their effectiveness. We’ve all heard the common refrain: “Just hire the best person, period.”
Political polarization is also playing a massive role, with DEI becoming a flashpoint in broader cultural debates — and the rise of right-wing governments and thinking is putting pressure on policies. Donald Trump’s election in the U.S. and the healthy lead here in the polls by Pierre Poilievre and the Conservatives speak directly to that point.
But the diversity horse is clearly out of the barn, so I’d argue the tamping down of formal programs doesn’t even matter. The fundamental business case for diversity and inclusion remains robust and compelling. Diverse teams foster innovation, make better decisions, and drive stronger financial performance. Capitalist economies ignore those benefits at their own peril — even if employers scrub the language out of their workplace policies.
An opportunity for change?
A recent article from the UBC Sauder School of Business sheds light on an interesting phenomenon: when employees from dominant groups feel threatened by diversity initiatives, it can actually be an opportunity for positive change. The key lies in fostering open dialogue and providing spaces for honest conversations. When organizations create environments where concerns can be expressed and addressed constructively, feelings of threat can be transformed into learning experiences, leading to greater understanding and allyship.
This suggests that the backlash against DEI doesn’t have to signify a retreat from progress. Instead, it can be a catalyst for refining our approaches. Many organizations are probably ready to move beyond formal programs that could inadvertently alienate and towards more integrated practices that embed diversity and inclusion into the DNA of the company.
Businesses that have genuinely embraced diversity — not just as a program but as a core value — are reaping the benefits. They’re attracting top talent from a wider pool, connecting more effectively with diverse customer bases, and fostering cultures of innovation that drive long-term success.
None of that ends if they rip the policy off the wall and cleanse the wording from their mission statements.
That’s because the fires DEI initiatives have lit don’t extinguish easily. They have sparked a broader awareness of the value of diversity in driving innovation, competitiveness, and organizational success. They have, hopefully, established a solid foundation where we can genuinely “hire the best person for the job” without overlooking exceptional candidates who might have previously been missed.
