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As the United States enters a new presidential administration, many companies are on the defensive: Meta is the most recent to announce it is scaling back diversity, equity and inclusion initiatives to better align with the messaging of the new Washington. But others – including Costco – are holding steadfast to their workplace inclusion programs. In this moment, companies have the opportunity to demonstrate if their commitment to DEI initiatives was purely performative, doomed to die, as some cynics posited – or if they are willing to stand by their values and prioritize their employees in the long term.

The pendulum swing away from DEI is short-sighted. An inclusive company provides tangible benefits to culture, productivity and innovation. These companies have a competitive edge, and will only pull further ahead if other organizations bow to the anti-DEI headwinds.

The research to support this is robust. A recent MIT Sloan study found that “taking a strategic approach that integrates DEI into business processes is linked to better financial performance in terms of return on assets and net income.” Diverse sales teams have higher conversion rates (54% as compared to 26% for teams with lagging DEI practices), sales attainment (43% as compared to 31%) and customer satisfaction (24% increase in scores as compared to 17%). Moreover, inclusive teams are over 35% more productive and diverse teams make better decisions 87% of the time. In short, the benefit of diverse teams has been proven time and again across industries for decades.

While headlines are focused on how the brand names that once sang the praises of DEI are changing their tune, it’s too early to tell how these decisions will affect the company culture. It may win favor in some political and media spheres, but it may also alienate top talent, lose them valuable market opportunities in an increasingly diverse global landscape, and affect employee performance. Additionally, when leaders waver, the ripple effects run deep. For employees who’ve trusted in their company’s values, seeing leadership backpedal on DEI commitments can be profoundly demoralizing. It signals that when push comes to shove, their wellbeing, representation, and growth are negotiable. That kind of betrayal doesn’t just affect morale; it impacts loyalty, performance, and a company’s reputation as an employer of choice.

Still, there is speculation that even major DEI rollback announcements are merely a rebrand and reorganization – a testament to the fact that companies benefit from these policies and are not eager to throw them to the wayside. If that is the case, however, companies should talk about it as such, and give DEI programs the acknowledgment they deserve, even if they are moving away from the specific acronym.

There are ways to sensibly prepare for a future and political landscape that will certainly be vastly different from the business environment of the previous administration. But companies shouldn’t roll over. Instead, they can be transparent and strategic while sticking to their values – which shouldn’t be rewritten every election year.

Maintaining effective DEI strategies in a changing environment requires a foundation of transparency. This means creating clear and accessible records of hiring, promotion and compensation decisions. This tactic fosters trust and underscores fairness, offering measurable proof of progress rather than mere rhetoric. Transparency helps companies diffuse any mystery or speculation around processes, providing peace of mind to all employees, whether they depend on these practices or are skeptical of them.

For example, companies can conduct regular audits of hiring and promotion practices to identify and address systemic barriers, and share summaries of their findings with employees. They can also establish mentorship and sponsorship programs to ensure equitable access to professional development opportunities, and employee resource groups to boost camaraderie and understanding. It’s also important to have robust feedback mechanisms, such as anonymous employee surveys, to gauge the effectiveness of initiatives and identify areas for improvement. These practices continue the push for more equitable, diverse workplaces while demystifying the process.

In this moment, it’s crucial that companies like Costco that are being criticized for maintaining DEI policies avoid knee-jerk reactions or defensive posturing. Now more than ever, companies should stand by their values: Acknowledge the importance of these initiatives and recognize that their long-term benefits far outweigh the challenges of navigating short-term opposition.

Fostering inclusive workplaces can drive innovation, strengthen employee engagement and position organizations for long-term success in diverse markets. Inclusion is not just a moral imperative but a critical driver of long-term success. Companies that maintain their commitment to diversity, equity, and inclusion – by any name – are not just building a better workplace; they're building better businesses and a better world.

Den Mondejar serves as Director of Diversity Enterprise and Talent Solutions at Aquent, helping Fortune 500 companies as well as small to medium-sized businesses achieve their workforce diversity goals through diversity recruiting.

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