Pulling Back on Inclusion Is Bad for Business

As political scrutiny of diversity, equity and inclusion (DEI) programs grows, some business leaders are reconsidering their commitment to inclusion. But according to SHRM, retreating from DEI, especially in the workplace, is a mistake—legally, culturally and economically.

Despite recent executive orders by the Trump administration targeting DEI in government programs, private-sector employers are not required to dismantle their DEI initiatives. No federal law bans diversity efforts that comply with anti-discrimination statutes. Companies are still legally obligated to maintain workplaces free of discrimination and harassment.

Nonetheless, some organizations have paused or scaled back their DEI work out of fear or confusion. Others, including Microsoft, Amazon, Apple and Ben & Jerry’s, have doubled down. In April, anti-DEI shareholder proposals failed at Goldman Sachs and Levi Strauss, signaling strong support for inclusion at leading firms.

Workplace inclusion is not only a legal safeguard—it’s a business imperative. In a competitive labor market, employees are seeking environments where they feel respected and valued. A report from Traliant found that 55% of employees who felt excluded at work considered quitting. A Monster.com survey showed 86% of job seekers weigh inclusion when choosing an employer.

Inclusion also impacts performance. McKinsey research found trust and inclusion are key to navigating disruption; employees who trust their teams are 42 times more resilient. Traliant’s data revealed that workers who feel included are nearly three times more committed to their organization’s mission.

Training remains a critical, though often underdeveloped, aspect of DEI. Nearly 40% of employees say current inclusion training isn’t effective. The most valued training areas include conflict resolution (60%) and active listening (56%), underscoring that inclusion is about skills, not just policy.

Companies that scale back DEI under political pressure risk losing talent, damaging culture and weakening resilience. Inclusion builds trust, boosts engagement and improves performance. The evidence is clear: maintaining robust inclusion programs isn’t just the right thing to do—it’s essential for long-term business success.