There’s a backlash afoot against diversity, equity and inclusion (DEI) programs in every sector of the economy. From the automotive industry (Ford) to software and technology (Microsoft), leading companies are very publicly announcing the abandonment or “restructuring” of formalized DEI workplace activities and policies. Not surprisingly, politicians have latched on to the controversy, accusing one another of being “DEI hires” or worse. The term is weaponized to imply a process that fills racial hiring quotas with unqualified workers, denying others opportunities.

It’s time to step back and re-evaluate exactly what diversity, equity and inclusion mean for the workplace and for America’s business communities.

How Did We Get Here?

In spring 2020, immediately following George Floyd’s murder, there was a legitimate wave of very public support for diverse communities. That societal upheaval shined a much-needed light on the equality struggles of not just the Black community, but Asian American Pacific Islanders, Native Americans and Hispanic groups as well.

Corporate America proclaimed its support for racial equality and justice. Many enhanced or created DEI programs to immediately advance positive action against perceived injustices and systemic racism. These reactions happened swiftly and loudly.

Rightly or wrongly, many felt excluded by this sudden, additional emphasis on diversity. These worries added to a mostly silent concern about perceived unfairness of DEI initiatives, which burst into the open with the landmark U.S. Supreme Court case Students for Fair Admissions v. Harvard. The court ruled that race-based affirmative action in college admissions violated the Fourteenth Amendment of the U.S. Constitution.

Since last summer’s ruling, a number of companies have dropped their DEI initiatives, allegedly in fear of consumer backlash. The topic has become a political hot potato and the subject of countless social media memes.

Dismantling a Misunderstood Term

When we break down DEI, its individual components are simple and widely accepted concepts.

Diversity: Racial background or ethnic origin is just one component of this important term. Physical ability, faith, gender, sexuality, neurodivergence, age and even military service status are all considered components of workplace diversity.

Equity: Creating a workplace where people are treated fairly sounds like a rational concept, right? According to Gallup, equity is defined as “fair treatment, access and advancement for each person in an organization.” It applies to pay, benefits, and opportunities for professional growth and promotion.

Inclusion: This term refers to providing opportunities for all employees to thrive. It speaks to allowing all to express their opinions and pursue their career goals without limitation based on background.

Nothing in DEI’s component terms implies granting privilege, enacting favoritism or filling quotas that exclude a specific group. Each term elevates fairness and opportunity for the individual. Together, they allude to a merit-based workplace that embraces different perspectives and experiences.

What Are DEI Programs?

Diversity, equity and inclusion programs have been a part of corporate America for decades. Beyond the laws regulating fair hiring and promotion compliance, DEI itself varies vastly from business to business. Some companies have extensive programs that are well-funded and use complex analytical data to track the need and impact in areas such as hiring, vendor sourcing, community outreach and diverse market growth. Many robust DEI programs tap into diverse employee populations not only to hear their feedback but also to gain valuable insight into the behaviors of diverse consumers. Others may simply conduct employee training on recognizing implicit bias or avoiding work-based sexual harassment, for example. These lower-end programs tend to exist for basic legal protection against discrimination lawsuits.

How Does DEI Benefit the Bottom Line?

For the vast majority of companies that formally embrace diversity and inclusion, DEI programs have a significant impact on their businesses. A few areas of note:

Innovation—Diverse thought and experience allow teams to approach problem-solving from many different perspectives, resulting in a creative culture that more easily innovates.

According to the Harvard Business Review, diverse teams are more objective in their research and outcomes, aware of how personal biases interfere with the examination of fact and and more logical in their decision-making.

Insight—Robust DEI programs can yield a wealth of market and consumer behavior data. Employee resource groups are a tried-and-true way of gaining insight into diverse populations’ purchasing preferences, needs and habits. They offer direct insight into cultural differences that often define product marketing success.

Recruiting—Attracting and retaining top talent can help perpetuate a business’s success. As the population inevitably becomes more diverse, job applicants are increasingly at an advantage, able to select where and how they want to work. Building a workplace culture that embraces diversity (and actually has people there who look like them) is essential.

Productivity—It is well documented that inclusion and diversity drive productivity and profitability. One overlooked aspect is colleagues bringing their whole selves to work each day. By removing perceived barriers of judgment and discrimination, employees can fully apply themselves to the business at hand.

A Return to Reality Requires Effective Communication

So, we’ve peeled away a thorny, scary layer of DEI misconceptions. We understand that well-structured, adequately funded, intentional DEI programs create opportunities for everyone and enhance corporate performance. Now, how do we turn down the rancor?

Effective, meaningful programs will speak for themselves. Appropriate, proportional communication supports those efforts and underscores their authenticity.

For companies that anticipate potential backlash in their customer populations, a quieter, nonconfrontational approach eliminates “us versus them” and better reflects the fairness aspect of DEI’s intent. Responding to criticism honestly and calmly may alienate a few outlier groups, but it will contribute greatly to a brand’s equity and attractiveness for new consumers, existing employees and potential partners.

Breaking down DEI’s core concepts is a helpful way to dismantle fear and misconception. Speaking of them in different terms may defuse some of the anger. Mentioning what DEI is not about—quotas and predetermined preference—can also effectively support your efforts.

At its core, DEI is about fairness and leveling the playing field. Let’s keep this in mind as we tune out the noise and focus on doing what’s right.

Dave Poston is CEO and general counsel of Poston Communications. John Brown is a vice president of content with the agency.

Reprinted with permission from the October 11, 2024 edition of Daily Business Review © 2024 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-257-3382 or reprints@alm.com.