Are Corporate DEI Efforts Sustainable in Today's Environment?

Real Change or Empty Promises?

Joseph C. Paolo

The discussion around diversity, equity, and inclusion (DEI) initiatives intensified following the death of George Floyd in 2020, prompting more corporations to invest in DEI programs. Recently, President Trump's Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” has reignited debate surrounding DEI by questioning the fairness and necessity of affirmative action policies and programs some people feel unfairly favor individuals based on their race or gender (Federal Register, 90 Fed. Reg. 7279, January 21, 2025, https://tinyurl.com/2pacurds). The rapid shift of DEI climate impacts both governmental hiring practices and policies, and those of publicly traded corporations. Section 4 of EO 14173 directs agencies and the Attorney General to identify “egregious and discriminatory” DEI practices and propose enforcement plans. It hints at targeting large public companies, non-profits, and universities for investigation if their DEI programs violate discrimination laws (https://tinyurl.com/2pacurds).