Risk mitigation is top of mind for U.S. corporate issuers in 2025, as the current federal administration attacks diversity, equity and inclusion, or “DEI”.
Just pick up a newspaper or scroll through LinkedIn and you’ll see hundreds of responses to corporate DEI commitments (or retractions) in reaction to recent legal challenges and political rhetoric.
DEI as a practice has come under fire. Critics contend that programs intended to assist people from historically disadvantaged groups do more to divide than to foster genuine inclusion, undermining fairness and hiring for merit or capability. Proponents believe that DEI leads to better financial results by creating cultures where different perspectives mitigate risk and drive innovation, and that helping uplift people is the right thing to do.
Companies are facing a dilemma – reframe or remove DEI initiatives to avoid attack (but risk disenfranchising stakeholders that support DEI) or stand strong with their beliefs (and risk potential attacks from the administration or other important stakeholders).
As with all corporate strategy, there isn’t a one-size-fits-all roadmap or playbook on how to manage this dynamic. Company decisions will be more nuanced, to make commitments that are best for their unique stakeholders and ultimately, their business. While the media may be quick to jump on any company update as a “retreat” from the tenets of DEI, many businesses are reframing their commitment to DEI as simply “inclusion” or “belonging”, to create workplace cultures that welcome everyone and to generate financial success.
In today’s highly divided world, can companies create cultures where both sides are valued, and their respective positions are heard?
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