Category: Diversity Insights

In 2025, the conversation around inclusion is taking a new direction. Instead of ticking boxes or following formal DEI procedures, more companies are embracing a deeper mindset: cultural intelligence. It’s no longer just about policy; it’s about people. Leaders today need the ability to understand, relate to, and work effectively with people from different cultures, backgrounds, and identities.

It’s not about political correctness. It’s about creating workplaces where everyone feels seen, valued, and heard. And it starts with leaders who are self-aware, open, and willing to grow.

From Compliance to Cultural Intelligence

The old DEI playbook relied heavily on regulation and risk avoidance. Training sessions? Check. Inclusive mission statements? Check. But those efforts often felt shallow when not supported by real behavioral change.

Forward-thinking organizations now ask different questions:

• Are our leaders equipped to lead diverse global teams?
• Do we know how to build trust across cultural differences?
• Are we practicing cultural intelligence at every level?

Cultural intelligence is the ability to adapt, connect, and collaborate across differences. 

Making Inclusion Part of Everyday Leadership

Inclusion doesn’t live in a training deck. It lives in the day-to-day: how we run meetings, how we give feedback, how we make space for quieter voices.

That’s why more organizations are embedding cultural intelligence into their leadership development strategies by:

• Training managers to recognize and adapt to cultural nuances
• Creating feedback systems that include a diversity of perspectives, not just the loudest voices
• Modeling curiosity and empathy as leadership strengths

When inclusion becomes second nature, teams thrive. It’s no longer about DEI checklists; it’s about human connection.

To see how this skill is being applied in real workplace settings, check out our article on Cultural Competency Training: A Key DEI Skill.

Why Cultural Intelligence Is Essential for Global Teams

With hybrid models, international collaboration, and evolving demographics, leaders today are facing more complexity than ever. And what works in one culture may fall flat, or even offend – in another.

High cultural intelligence allows leaders to:

• Adjust their communication and leadership style for global audiences
• Navigate cultural expectations during conflict, performance reviews, and team dynamics
• Lead with respect and flexibility

The ripple effect? When leaders demonstrate inclusive behaviors, it shifts the culture company-wide.

Inclusion Is Now a Practice, Not a Project

Inclusion used to be an initiative. Now, it’s a mindset. And the companies that are thriving in 2025 are the ones that treat inclusion as part of how they operate, not just a campaign.

At the heart of this shift is cultural intelligence. It’s what turns good intentions into lasting change. It’s how we move from compliance to connection, from awareness to action and build workplaces where everyone belongs.

When a new CEO or leadership team steps in, one of the first questions DEI professionals often ask is: Will our diversity, equity, and inclusion efforts still matter tomorrow?

It’s a fair concern. Too often, DEI programs are seen as the passion projects of a single leader or team. When that leadership changes, so does the support – and sometimes, the budget, the visibility, and the momentum. To prevent this cycle, HR and DEI leaders must shift from reactive to resilient. That means building a sustainable DEI strategy that’s not dependent on any one person, but instead deeply rooted in the organization’s DNA.

Here’s how to do it.

Core Values as the Foundation of a Sustainable DEI Strategy

It’s one thing to list “diversity” or “inclusion” on a poster. It’s another to have those values actively guide decisions.

A sustainable DEI strategy starts with your organization’s core values, but not just in writing. Are those values referenced in hiring conversations? Performance reviews? Leadership development? When DEI principles are consistently applied across people operations, they stop being optional. They become part of how the business functions.

Want to explore how values shape long-term success? Check out our article Why Values-Driven Companies Win in the Long Run.

Try this: Revisit your organizational values with your DEI team and leadership. Identify opportunities to translate them into behaviors and expectations across departments.

Make DEI Metrics Everyone’s Business

DEI success can’t rest solely on the shoulders of your Chief Diversity Officer or HR lead. A more sustainable approach spreads accountability across the business.

Include DEI metrics in executive scorecards. Give department heads goals tied to inclusive practices. Train team leads to track and report on inclusion within their teams, not just diversity hiring.

This shared ownership model is a key component of building a sustainable DEI strategy – one that doesn’t rely on a single champion to survive.

Why it works: When DEI outcomes are tied to overall performance and accountability, they stay relevant even as leadership evolves.

Document, Don’t Just Delegate

When leadership changes, undocumented plans and informal practices are usually the first to disappear.

That’s why your DEI framework should live in clear, living documentation. That includes your strategy, goals, metrics, and timelines. More importantly, it should include why your company does DEI – not just what you do.

Without this clarity, it’s hard to build a sustainable DEI strategy that lasts beyond leadership changes.

What to include:

• DEI mission statement and guiding principles
• Strategic objectives and KPIs
• Roadmaps for training, hiring, employee engagement
• Internal roles and responsibilities for DEI execution

This kind of documentation not only survives transitions; it helps onboard new leaders with clarity and purpose.

Cross-Functional Ownership Drives a Sustainable DEI Strategy

Resilient DEI doesn’t live in a silo. It’s shared across teams.

Form an internal DEI council with representatives from different departments and levels. Rotate leadership. Let employees co-create initiatives. This helps avoid a single point of failure if one leader leaves and it builds a culture of shared responsibility. A sustainable DEI strategy depends on broad participation, not just top-down support.

Pro tip: Make space for employee-led groups to present updates to leadership. When DEI is seen as grassroots and cross-functional, it gains staying power.

Keep Storytelling Alive

Leadership may change, but your people’s stories don’t. Use those stories to reinforce why DEI matters.

From onboarding videos to internal newsletters, make space for employees to share experiences related to belonging, cultural identity, or growth. These lived narratives often have more lasting impact than top-down announcements. They humanize your strategy and remind new leaders that DEI isn’t a “nice to have.” It’s real people, real experiences, and real impact.

Stories give life to your sustainable DEI strategy by connecting values with real people.

Final Thoughts: DEI That Lasts

Leadership changes are inevitable. But losing progress on diversity, equity, and inclusion doesn’t have to be. When you build a sustainable DEI strategy, you’re not just checking boxes; you’re creating a framework that endures. One that’s supported by your values, carried by your teams, and felt across your organization.

And that kind of DEI? It doesn’t just survive leadership transitions – it thrives through them.

Looking for practical tools to support your DEI strategy year-round? Explore the Belonging Calendar by Diversity Resources to build inclusion, connection, and understanding in the workplace.

Employee disengagement around DEI doesn’t always come from disagreement or resistance. Often, it’s rooted in emotional fatigue, a loss of connection, or the sense that these initiatives lack real impact. Before we can fix disengagement, we have to understand where it comes from, and what it really feels like on the ground.

Why Does DEI Burnout Happen?

Here are a few reasons employees may be tuning out:

• DEI feels performative: If the initiatives feel top-down, checkbox-driven, or disconnected from the daily work culture, employees may question their purpose, leading to employee disengagement.
• Message fatigue: When DEI is communicated with the same phrases or slogans, over and over, it can start to feel like background noise.
• No visible impact: Employees may not see meaningful change, especially if leadership isn’t modeling inclusive behavior or addressing issues when they arise.
• Discomfort or fear: Some employees might be afraid of saying the wrong thing. Others might feel they’re not included in the conversation.

None of this means the work should stop. It just means the strategy needs to shift.

Rebuilding Trust to Combat Employee Disengagement

One of the most overlooked tools in addressing employee disengagement around DEI is tone. It’s not just what you say; it’s how you say it. If your messaging feels corporate or overly cautious, it can come across as cold or impersonal. Instead:

• Use human, conversational language. Speak like a real person, not a press release.
• Acknowledge reality. If engagement has dipped, say so. Name the elephant in the room to earn back credibility.
• Invite reflection, not perfection. Position DEI as a learning journey, not a test people need to pass.

When tone feels authentic, employees are more likely to listen, even if they’re not sure they agree.

Make DEI Relevant to Reduce Employee Disengagement

People engage with what feels personal. If DEI is always framed in abstract values or corporate mandates, employees may not see how it applies to them, opening the door to employee disengagement.

To reconnect the dots:

• Tie DEI to real work moments. Show how inclusive communication leads to better teamwork, or how diverse thinking drives innovation in their department.
• Feature diverse voices. Share short stories or micro-videos from employees across departments. Let peers lead the conversation.
• Link to goals that matter. Whether it’s recruitment, retention, or customer satisfaction, help teams see how DEI moves the needle.

Relevance creates buy-in. And buy-in is what turns employee disengagement into curiosity again.

How to Reduce Employee Disengagement Through DEI

If you want to reduce employee disengagement, DEI efforts must feel intentional and connected to people’s real concerns and daily experiences. Performative gestures won’t cut it. Employees need to see consistent action, inclusive leadership, and a culture where their input leads to real change.

• Keep it two-way. DEI can’t be a monologue. If you’re only pushing content without inviting response, disengagement is almost inevitable.
• Ask, don’t tell. Use pulse surveys, anonymous Q&As, or open listening sessions to find out where people really stand.
• Close the loop. If people raise concerns or suggestions, share what you’re doing with that feedback.
• Create brave spaces. Not everyone feels safe speaking up in front of a group. Offer multiple ways to participate: online, one-on-one, or via small group discussions.

When people feel heard, they’re more likely to engage again.

A Note on Measuring Engagement (Beyond Attendance)

Attendance doesn’t always equal engagement. Someone can be in the room and completely tuned out. Instead of just counting heads:

• Watch for who’s speaking up and who’s silent
• Track sentiment over time through qualitative feedback
• Notice shifts in how teams collaborate or communicate

Engagement is a vibe, not a spreadsheet. Trust your instincts, but back them up with real listening.

The Bottom Line: Keep It Human

Employee disengagement around DEI isn’t a sign of failure; it’s a call to realign. If people are tuning out, it might be because the messaging lost its meaning, or the effort feels more like a policy than a practice.

But re-engagement is possible. It starts with a shift in tone. A focus on what’s real. And a commitment to meet people where they are, not where you want them to be.

When employees feel seen, heard, and understood, not just managed, they lean back in. And that’s where true belonging begins.

Need help rebuilding engagement in your workplace? Explore our microlearning modules, designed to be human, honest, and built for today’s workforce.

As political and legal challenges put DEI programs under the microscope, the message from corporate America has been remarkably clear: shareholders reject anti-DEI proposals 2025 and they’re not backing down from inclusion.

In recent weeks, shareholders at some of the country’s largest companies, including Apple, Coca-Cola, Costco, John Deere, Goldman Sachs, Visa, Disney, and Levi Strauss, voted overwhelmingly against proposals aimed at dismantling diversity, equity, and inclusion (DEI) initiatives. We’re not talking about narrow wins either. We’re talking about 98% to 99% rejection rates.

A 98% Rejection Rate on Anti-DEI Proposals: Corporate America Isn’t Backing Down

Let’s look at a few examples:

• Goldman Sachs and BMS shareholders each rejected two anti-DEI proposals by a 98% margin
• At Apple and Pfizer, 98% of shares were voted against similar proposals
• Levi Strauss, American Express Coca Cola, John Deere, Gilead Sciences, Visa, Walt Disney? More than 99% of shareholders stood up for DEI

These aren’t just numbers; they’re statements. And they’re powerful.

The Bigger Picture

These proposals were part of a growing trend where anti-DEI activists attempt to paint inclusion efforts as unnecessary or divisive. But the shareholder response across industries tells a different story. It reflects a broad understanding that DEI isn’t just about checking boxes or following trends; it’s about building stronger, more resilient businesses that reflect the world we live in.

In statements following these meetings, several companies reaffirmed their commitment to creating inclusive workplaces. Many pointed out that DEI drives innovation, supports employee engagement, and makes companies more attractive to talent and customers alike.

What the 2025 Anti-DEI Proposals Rejections Mean for the Future

The overwhelming rejection of anti-DEI proposals 2025 sends a clear message: inclusion isn’t going anywhere. Despite external pressures, corporate America is doubling down on belonging.

But it’s not just about surviving the DEI backlash. Companies now have a chance to move from defense to momentum, to deepen their commitment, measure what matters, and show the long-term value of inclusive cultures.

For more on how companies are adapting their DEI strategies amidst these challenges, read our article on Corporate Responses to DEI Policy Changes.

The Takeaway

2025 may be a turning point. Not because DEI is under attack, but because it’s being defended loudly and publicly by the very people who have the power to shape company priorities: the shareholders.

At Diversity Resources, we see this as a moment of affirmation. It’s proof that even amid pressure, progress can hold. And with the right leadership, it can grow.

Strong employee engagement initiatives are essential for building a motivated, connected workforce. But sometimes, even the best-intentioned efforts miss the mark. A program can look impressive on paper but fail to make a real difference in how employees feel about their work, their teams, and the organization as a whole.

If you’re wondering whether your staff engagement initiatives are truly effective, here are five signs they might be more surface-level than meaningful and practical ways to fix them.

5 Signs of Surface-Level Employee Engagement Initiatives

1. There’s More Talk Than Action
If most of your employee engagement initiatives involve speeches, emails, or one-time announcements but little follow-through, employees will notice. Promises without action can lead to disengagement and mistrust.

How to Fix It:
Tie every announcement to a clear plan and timeline. Show visible progress along the way. Even small updates reassure employees that the organization is serious about what it says.

An employee engagement calendar is a great way to support your initiatives.

2. Feedback Is Asked For But Nothing Changes
Gathering feedback is important, but it’s not enough. If employees consistently share ideas and concerns and see no change, it sends a message that their voices don’t matter.

How to Fix It:
Close the loop on feedback. After surveys, town halls, or check-ins, share what was heard and what actions will be taken. If certain ideas can’t be implemented, explain why. Transparency builds trust, even when the answer isn’t perfect.

3. Initiatives Are One-Size-Fits-All
Generic staff engagement initiatives that don’t consider different teams, locations, or employee experiences can easily feel disconnected. What energizes one group might not work for another.

How to Fix It:
Customize your HR initiatives for employee engagement. Involve employees from different departments and backgrounds in designing programs. Offer choices when possible to make sure efforts are truly inclusive and relevant.

4. Employee Engagement Initiatives Focus Only on Perks
Free lunches, team outings, and wellness days are great, but if these are the main focus of your engagement strategy, something deeper is missing. Employees also want meaningful development, recognition, and connection.

How to Fix It:
Balance fun events with career growth opportunities, leadership access, and peer recognition. Initiatives for employee engagement should support both the personal and professional sides of an employee’s experience.

5. Leaders Don’t Champion the Initiatives
When employee engagement initiatives are seen as HR’s responsibility alone, they often lose impact. Employees pay close attention to what inclusive leaders prioritize  and what they don’t.

How to Fix It:
Encourage leaders to actively participate, not just endorse programs. Whether it’s attending training sessions, mentoring employees, or celebrating achievements, leadership involvement shows that engagement matters at every level.

Creating Lasting Change

Employee engagement initiatives are most successful when they go beyond appearances and create real, lasting change. By recognizing the signs of superficial efforts and taking simple, thoughtful actions, organizations can build a workplace where people feel seen, heard, and valued.

Want to make inclusion a daily practice? Explore how our Belonging Calendar can support your DEI goals with insights, tools, and resources for lasting impact.

When Marriott CEO Anthony Capuano sent out a company-wide message reaffirming Marriott’s commitment to inclusion and putting people first, he likely didn’t expect what would happen next: more than 40,000 employees across the company wrote back to thank him.

This overwhelming response highlights the true impact of inclusive leadership at work: a powerful example of how leadership grounded in real values creates genuine connection and trust. In an interview with Fortune, Marriott CEO Anthony Capuano explained how the company’s focus on people-first leadership helped build a strong culture of belonging.

In a time when trust in leadership can feel fragile, this moment shows something powerful: real leadership grounded in clear values can make people feel seen, heard, and valued at work. And when employees feel that way, they don’t stay silent. They speak up.

Inclusive Leadership That Sparks Belonging

At many companies, a CEO statement about diversity or inclusion can come across as just another corporate message. But Capuano’s note felt different to Marriott employees. Why? Because it matched what they already saw and experienced inside the company’s culture.

Capuano didn’t just talk about inclusion; he pointed to actions the company had taken, including a long-standing focus on hiring from within and offering growth opportunities to frontline workers. He emphasized a people-first approach that had guided Marriott’s business decisions even during challenging times.

That authenticity resonated. And it built trust.

In inclusive leadership, it’s not just about saying the right thing; it’s about making sure the words match the day-to-day experience. Capuano’s message wasn’t a momentary campaign; it reflected how Marriott operates, and employees knew it.

Why Employees Responded

Employee feedback doesn’t always come in the form of 40,000 thank-you emails. But when it does, it tells us something important about workplace belonging:

• People notice leadership decisions, especially when they align with company values
• Employees want to feel part of something bigger than their daily tasks
• Culture matters most in uncertain times, when change, stress, or economic pressures could easily pull a company’s focus elsewhere

Inclusive leadership at work helps make this possible. When leaders communicate transparently and act on what they say, employees feel it. And they respond not just with engagement, but with loyalty.

Company Culture in Action

Marriott’s story is one of the clearest company culture examples today. It shows that belonging isn’t built overnight or through one-off campaigns. It’s built through consistent signals from leadership over time; signals that tell employees:

• You are valued here
• Your growth matters
• We are invested in who you are, not just what you produce

Strong company cultures often grow from consistent examples of inclusive leadership at work, where employees experience trust, growth, and a deep sense of belonging every day.

Especially in today’s workplace, where remote work, economic shifts, and rising employee expectations have changed the game, leaders who can foster genuine belonging have a real advantage. It’s not just about being a good place to work. It’s about being a place where people want to stay and grow.

What Inclusive Leadership at Work Means for HR and Communications Leaders

For HR and communications leaders, Capuano’s story is a reminder: words matter, but only when they are backed by action.

If you want to strengthen workplace belonging at your company, start with these questions:

• Are our leadership messages backed by visible, real-world actions?
• Are we communicating in ways that feel authentic, not corporate?
• Are we inviting employee feedback and showing we’re listening?

Employee engagement isn’t created through one-off initiatives. It grows when employees consistently see that leadership decisions align with values they care about. Inclusive leadership plays a critical role in sustaining this sense of belonging over time.

Inclusive leadership at work means creating a culture where everyone feels valued.

Want to make inclusion a daily practice? Explore how our Diversity Calendar can support your DEI goals with insights, tools, and resources for lasting impact.

In today’s rapidly shifting corporate landscape, DEI budgets 2025 are standing at a crossroads. While diversity, equity, and inclusion have long been central to organizational strategy, economic pressures and public discourse are reshaping the conversation. From boardrooms to break rooms, companies once committed to building inclusive workplaces are now reevaluating their priorities. And as DEI budgets 2025 come under closer scrutiny, many professionals are asking the same question: Where does DEI stand now, and where is it heading?

23% of Organizations Are Increasing DEI Spending

A recent study by Paradigm based on a survey of 443 organizations revealed some compelling data. While 19% of companies have reduced funding, the headline many missed is this: 23% of organizations have actually increased their DEI budgets 2025. The majority? They’re holding steady.

These numbers paint a more nuanced picture than the typical doomsday narrative about DEI budgets 2025. The idea that DEI is being abandoned simply doesn’t hold up when you zoom out.

Data from DEI budgets 2025 continues to challenge the narrative that inclusion is fading.

Leadership and Accountability in DEI Budgets 2025

Another key insight from the report is how DEI leadership is shifting. In some organizations, the visibility of DEI leaders has decreased. Titles are changing, responsibilities are being redistributed, and in some cases, DEI is being absorbed into broader HR or culture roles.

At first glance, this might seem like a step backward. But there’s a more complex story underneath. This evolution could mean that DEI is becoming more integrated into overall business strategy rather than being siloed. Leaders are also being asked to deliver more measurable impact, tying efforts to outcomes.

We’re also seeing a shift in accountability. Companies that are still invested in DEI budgets 2025 are focusing more on data, metrics, and progress tracking. They’re asking tougher questions: What’s working? What needs to change? How do we embed DEI across every level of the organization?

That shift from optics to outcomes is a sign of maturity.

Reframing the Work

If you lead DEI efforts at your company, these insights can feel like both a challenge and an opportunity. Budgets might not be growing everywhere, but there’s momentum in the direction of integration, measurement, and sustainability.

This is a moment to reframe how we talk about our work:

• DEI is not an initiative; it’s infrastructure
• It’s not just about events and training; it’s about systems and strategy
• It’s not performative; it’s performance-driven

In many ways, this shift forces DEI professionals to get sharper, more strategic, and more connected to the core business. That’s a good thing.

The Path Forward

For HR teams and C-suite leaders, this is also a time to listen. If your company is part of the 23% investing more, you have an opportunity to lead. If you’re in the “holding steady” camp, take stock of what that budget is really delivering. And if cuts are on the table, ask yourself: What are we losing in the process?

Whether you’re expanding or sustaining, DEI budgets 2025 are a reflection of deeper values, not just numbers on a spreadsheet.

Let’s be clear: this moment isn’t easy. Political polarization, economic uncertainty, and shifting public sentiment all create headwinds. But let’s not confuse pressure with collapse. The data tells us that DEI isn’t being erased. It’s being refined.

Want to make inclusion a daily practice? Explore how our Diversity Calendar can support your DEI goals with insights, tools, and resources for lasting impact. As we explored in our article on DEI leadership in Europe, structural support matters more than ever.

DEI in Europe is gaining global recognition as companies across the continent step up their DEI efforts. While diversity, equity, and inclusion (DEI) has long been a focus worldwide, the spotlight is now steadily shifting – toward Europe.

Traditionally, the U.S. has been seen as a front-runner in DEI conversations, especially in corporate circles. But across Europe, a quieter, more policy-driven evolution is taking place. And it’s catching attention. More companies, industries, and entire countries are stepping into DEI leadership roles – sometimes in ways that feel more integrated and long-term than the splashier initiatives we’ve seen elsewhere.

Let’s take a closer look at how and why Europe is increasingly being viewed as a global leader in workplace diversity and where there’s still work to be done.

Policy-Driven Progress: A Foundation for Lasting Impact

One of the key reasons Europe workplace diversity efforts stand out is that they’re often backed by legislation. Germany, for example, requires gender representation on executive boards. France’s 40% quota for women on corporate boards by 2030 is another strong signal that DEI is moving from theory to practice.

These laws aren’t just symbolic; they set real expectations for companies and boards. And when DEI becomes part of compliance, it tends to show up in hiring, promotions, and even partnerships.

By contrast, many efforts in North America remain voluntary. That gives European companies a chance to build more consistent, systemic inclusion into the way they operate.

Social Infrastructure as a DEI Engine

Another unique strength lies in Europe’s social model. From universal healthcare to parental leave for all genders, these policies create a more equitable environment for employees before they even walk into the office.

Sweden and Norway, for example, offer parental leave policies that normalize caregiving roles for both people of all genders – impacting gender equity at every level of leadership. Meanwhile, in the Netherlands, employers are expanding inclusive hiring to support diverse workplaces in Europe, including neurodivergent individuals and those from underrepresented communities.

How Europe’s DEI Momentum Shapes Workplace Diversity Worldwide

Across the private sector, we’re seeing companies not just following policy, but actively pushing ahead.

SAP, headquartered in Germany, has become a global role model in neurodiversity hiring. Barclays in the UK is leading in mental health inclusion and accessibility practices.

These companies are creating real benchmarks for inclusion, not just within Europe but globally. Their work shows that Europe workplace diversity is not just about compliance. It’s about culture, leadership, and intentional design.

This progress in Europe workplace diversity reflects more than just policy, it signals deep cultural change.

Room to Grow: Challenges in Equity and Representation

Of course, Europe’s DEI story isn’t perfect.

While gender equity has made strides, racial and ethnic representation remains a challenge, especially with limited data collection in many countries. And in Eastern and Central Europe, DEI maturity varies widely.

Islamophobia, antisemitism, and anti-immigrant bias continue to affect access to jobs and upward mobility. For Europe to lead authentically, it must expand inclusion efforts beyond gender and ability to fully reflect the continent’s growing diversity.

How DEI in Europe Is Reshaping the Global Standard

In 2024, a Deloitte report found that 68% of European companies have tied DEI goals to executive performance reviews, compared to just 41% of North American companies. That’s a significant gap and a sign of growing accountability.

It’s also becoming clearer that employees, especially Gen Z and Millennials, expect organizations to take diversity seriously and to prove it. Whether you’re hiring in Berlin, Barcelona, or Brussels, the expectation is the same: inclusion shouldn’t be performative. It should be part of the culture.

Europe’s DEI journey is far from over, but it’s increasingly one worth watching and learning from. Through stronger regulation, embedded social policies, and a growing wave of corporate leadership, many European countries are making real strides. The challenge now is to maintain that momentum, expand it across sectors and geographies, and ensure no one gets left behind.

Want to make inclusion a daily practice? Explore how our Diversity Calendar can support your DEI goals with insights, tools, and resources for lasting impact.

DEI backlash is becoming a reality that many organizations are now forced to navigate and recent headlines show just how big the stakes are. The contrast between the Costco DEI strategy, which stayed strong, and Target’s retreat highlights what’s at risk.

In January 2025, Target made waves by scaling back its diversity, equity, and inclusion (DEI) efforts. The retail giant ended its Racial Equity Action and Change program and withdrew from external diversity surveys – a move largely seen as a response to political pressure. The fallout was swift.

Target Loses​ $12.4 Billion in Market Value

Shoppers took notice. Foot traffic to Target stores dropped for ten straight weeks, with a 7.9% year-over-year decline recorded by early April. The pullback was particularly sharp among Black and Hispanic consumers, who reduced visits at significantly higher rates. Adding to the trouble, nearly one in five U.S. adults said they stopped buying from brands that walked back DEI commitments. Among Gen Z adults, that figure was twice as high.

The market reacted, too. Target’s stock plummeted to a four-year low, wiping out close to $12.4 billion in market value – all amid increasing public frustration with perceived DEI backlash.

Costco Doubles Down on DEI and Sees 7.7 Million More Store Visits

Meanwhile, Costco took a very different approach. Despite facing similar pressure, the wholesale retailer stood firm on its DEI values. A shareholder proposal to assess the “risks” of its diversity practices was overwhelmingly rejected with more than 98% voting against it. Costco’s leadership reaffirmed that DEI isn’t just a box to check, it’s central to their employee strategy and rooted in the company’s core ethics.

That consistency paid off. In the four weeks ending February 9, 2025, Costco welcomed nearly 7.7 million more store visits, while Target saw almost 5 million fewer during the same period. The surge was especially pronounced among Black and Hispanic/Latino households.

Public opinion also tilted in Costco’s favor. A SurveyMonkey poll found that 68% of Americans backed the company’s decision to maintain its DEI commitments – even in the face of DEI pushback.

The Real Impact of DEI Backlash

The contrast between Target and Costco highlights a powerful message: when brands pull back on DEI, consumers notice and respond. Companies that walk back commitments risk losing trust, loyalty, and even market value.

But there’s more at stake than reputation. DEI remains a smart, strategic business move. Studies from McKinsey & Company consistently show that diverse companies outperform their peers. In fact, two-thirds of Americans believe diversity efforts lead to better products and services, while more than a third say they’re more likely to apply to inclusive companies.

In short, resisting the DEI backlash isn’t just about ethics – it’s about effectiveness.

The Bottom Line: Consistency Builds Credibility

The contrasting decisions made by Target and Costco offer a clear lesson for business leaders: in today’s values-driven economy, authenticity matters. DEI backlash may be trending in headlines, but staying committed to diversity, equity, and inclusion can pay off for customers, employees, and the bottom line.

Want to make inclusion part of your everyday operations? Discover how our Diversity Calendar can help you embed DEI into your culture with actionable tools, insights, and resources for real impact.

Any business is a complex system with multifaceted goals. Some of these goals are widely shared, like growth and value creation for stakeholders. But each business also gets to define its own core values. These might include trust, accountability, boldness, or innovation. Diversity, equity, and inclusion are other examples, and for many organizations, they’re a central part of how the business operates.

The Benefits of Strong Values

Values give employees a sense of purpose. People, especially younger workers, want to work somewhere they can make a meaningful impact. A business with strong values attracts those who want more than just a paycheck. It brings in people who are driven, passionate, and aligned with a company’s mission.

Sticking to your values signals a strong, authentic culture. On the flip side, walking away from them can make an organization look performative or inconsistent. Rather than chasing trends, refining your goals while holding onto your values shows real commitment to long-term progress. It builds a lasting brand, impact, and legacy.

Values also help a business stand out. Companies that want to create positive change are more likely to be seen as positive contributors to their communities. Inclusion, in particular, can drive innovation, employee engagement, and stronger decision-making – here’s how inclusion can improve your business.

When your business is built on values and purpose, it grows from the inside out. Knowing not just what you’re doing, but why, creates more cohesion, fosters connection, drives innovation, and boosts engagement.

The Strategy of Commitment

A company’s core values aren’t just words – they’re a reflection of what the business stands for and strives toward. They guide how challenges are handled and serve as a foundation for a strong company culture. Living your values isn’t just about integrity; it’s about creating a reliable system that can evolve and succeed over time.

Standing firm on your values can also bring long-term rewards. Take Apple’s commitment to privacy. It’s a value they’ve consistently upheld, and it’s become a defining part of their market position. That kind of consistency builds trust and reputation.

What Really Matters

When defining your business’s values, think about what your organization stands for, not just what it sells. Consider the kind of internal culture you want to foster, and the impact you want to make in the world. These questions help you uncover your core values. But defining them is just the start. For your values to mean something, you have to live them every day.

Want to align your calendar with the values that drive your culture? Explore our Diversity Calendar to keep inclusion top of mind all year.

Tokenism is “the practice of doing something (such as hiring a person who belongs to a minority group) only to prevent criticism and give the appearance that people are being treated fairly.”

One clear sign of tokenism is when an organization has only one member of a certain demographic represented in a group. This not only gives the impression of doing the bare minimum to appear diverse but also places an unfair burden on that individual to represent an entire demographic.

The Rise of Tokenism in DEI Efforts

Following the police killings in the spring of 2020 and the movements that followed, there was a surge in diversity, equity, and inclusion (DEI) initiatives across industries. However, alongside genuine efforts, there was also an increase in tokenism – where organizations made superficial changes to avoid public scrutiny rather than committing to meaningful inclusion. In many cases, tokenism isn’t always intentional; it often stems from a lack of awareness or understanding.

How to Combat Tokenism in Your Organization

Here are some key strategies to combat tokenism in your organization:

Avoid Type-Casting
Tokenism often shows up in marketing when employees from underrepresented backgrounds are placed front and center in campaigns simply to showcase diversity. This can create a misleading picture of the company’s actual inclusivity and reduce employees to symbols rather than valued individuals. Instead of type-casting for the sake of optics, ensure that promotional and communication materials genuinely reflect the diversity within your organization in a thoughtful and natural way.

Don’t Assign Spokespeople
Hiring a handful of employees from marginalized groups and expecting them to speak on behalf of their entire demographic is unfair and isolating. No single person should bear the responsibility of educating others or advocating for systemic change alone. Instead, gather feedback from a diverse range of voices and ensure that inclusion efforts are shared across leadership and teams.

Provide Meaningful Support
Tokenism is not just dehumanizing – it’s isolating. Employees from underrepresented backgrounds need support structures to thrive. Employee Resource Groups (ERGs), mentorship programs, connections with cultural organizations, and clear access to leadership for addressing concerns can all help create an environment where employees feel valued and heard.

Moving Toward Real Inclusion

Ultimately, the key to combatting tokenism is simple: Treat people as full, complex individuals – not just representatives of a demographic. Real inclusion means going beyond surface-level representation and ensuring that all employees are supported, valued, and empowered to succeed.

Want to make your workplace more inclusive? Our Diversity Calendar helps organizations plan, acknowledge, and celebrate cultural, religious, and identity-based events with authenticity.