There's been a lot of buzz about DEI from politicians and major corporations lately — but does anyone actually know what it means?
The business practices spanning back decades have come under fire in recent months by conservatives who are accusing companies of using DEI to unfairly elevate minority groups over others. But that isn't what DEI does.
Long story short: DEI is not a set of policies, but rather suggestions for practices aimed at enforcing and complying with existing anti-discrimination protections in workplaces. It does not ensure certain groups have preferential treatment, but rather that none do.
For the full explanation, keep scrolling.
What is DEI?
DEI, which stands for diversity, equity, and inclusion, does not seek to elevate minority groups over others, but rather to make sure that marginalized people are not being discriminated against or excluded from certain fields. It is not a specific set of practices, but a framework used to grow a business or organization by expanding its clients, employees, and partners.
"Diversity" refers to the variety of communities a business or organization is able to engage or work with, whether they be comprised of different races, genders, abilities, ages, religions, or veteran statuses. "Equity" refers to fairness, such as ensuring equal pay for equal roles. "Inclusion" often refers to workplace culture, ensuring that employees and other contributors feel as if they are involved in company or organization decisions.
What are DEI examples?
As it is not a specific set of policies, there are countless ways in which DEI can be implemented in a company. "Diversity" measures could include working with small businesses over large corporations or suppliers. "Equity" measures could involve ensuring facilities are accessible to wheelchair users, those with vision impairments, or those who are hard of hearing. "Inclusion" measures could be as simple as inviting lower-level workers to management meetings so they can voice their perspectives.
What's the difference between DEI and affirmative action?
Whereas DEI is focused primarily on a company or organization's culture and does not have a specific set of policies, affirmative action has been used in hiring, college admissions, and contracting to increase diversity, whether through targeted recruitment of a certain group or through a quota, usually with the goal of having the recruitment pool reflect the demographics of the area it is based in.
However, hard quotas for workplaces are illegal in the United States under the Equal Employment Opportunity Act of 1972. Affirmative action has therefore been used to guarantee selection without regard to raceor other group characteristics.
Preferential treatment was used in college admissions until the 2023 Supreme Court ruling Students for Fair Admissions v. Harvardard. Universities used preferential treatment as a way to remove the barriers that underrepresented groups face when applying — those barriers often relate to racism, classism, and more.
What do Trump's DEI executive orders do?
While one of Trump's executive orders called for the termination of all DEI positions in the federal government, another went far beyond DEI and rescinded civil rights protections from Lyndon B. Johnson's Executive Order 11246 that prevented the federal government from discriminating "against any employee or applicant for employment because of race, color, religion, sex, or national origin." The Trump Administration claimed to create “colorblind equality" while overturning the very policy mandating it.
However, Trump's executive orders do not overturn the EEOA, nor do they stop private companies from implementing any policies related to DEI.
What companies got rid of DEI?
Over a dozen major corporations have announced that they would be rolling back their DEI programs in the past year, including Ford Motor Company, Toyota Motor Corp., Harley-Davidson, Lowe's, Tractor Supply, John Deere, Walmart, Target, McDonald's, Amazon, Meta, Molson Coors, and Jack Daniel's.
Notably, many of the companies that have abandoned DEI are behind products largely marketed towards men. Companies that have kept their DEI initiatives and have not faced widespread calls to abandon them are traditionally marketed towards women, including clothing and makeup retailers like Ulta, Macy’s, Old Navy, Nordstrom’s, and TJ Maxx, or grocery chains like Costco, Meijer, and Kroger's.
Why are companies getting rid of DEI?
Many companies' decisions to overturn DEI came after conservatives online specifically targeted them for their policies and threatened boycotts. Failed filmmaker turned failed congressional candidate Robby Starbuck has taken credit for spearheading the movement and influencing the companies' decisions, however experts believe that Starbuck's pressure alone does not explain the shift.
Meta recently announced the end of its DEI programs almost immediately after announcing new content rules that allow users to abuse LGBTQ+ people, citing the shifting "legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States." McDonald's also cited Supreme Court decision against affirmative action in its decision to end DEI programs the, as well as changes among "other companies."
When defending its DEI policies, Costco accused the right-wing group that lobbied against them of manufacturing "burdens on companies with their challenges to longstanding diversity programs," adding that conservatives' "broader agenda is not reducing risk for the Company but abolition of diversity initiatives."
Is DEI good for business?
Several studies show that both employees and customers value businesses with DEI, which can affect turnover and profits. More than half of workers in the U.S. (52 percent) said that focusing on DEI at work is mainly a good thing, according to a 2024 Pew Research survey, and companies with above-average diversity in management reported innovation revenue 19 percent higher than those with below-average diversity, a study from Boston Consulting Group found.
Americans are also twice as likely to buy or use a brand that supports LGBTQ+ rights, according to a GLAAD survey, and those ages 18 to 34 are over five times more likely to want to work at a company if it publicly supports LGBTQ+ rights.