Let’s get something straight: the push for rolling back diversity, equity, and inclusion (DEI) initiatives isn’t just misguided.
It is stupid. It’s built on tired, false assumptions that don’t hold water and it will cost companies their competitive edge, lose them revenue and in some cases, be a major factor in that business collapsing.
The technology industry has – sadly – become the poster child for rolling back DEI initiatives. But this attitude is seeping out fast to other B2B sectors – despite data that shows businesses improve with diverse workforces and it has a positive impact on bottom line
Take, for example, the insinuation that DEI efforts mean hiring underqualified candidates simply because they belong to a minority group. This couldn’t be further from the truth.
A 2019 McKinsey report found that companies in the top quartile for ethnic and cultural diversity on executive teams were 36% more likely to outperform on profitability compared to those in the bottom quartile.
Elsewhere, 2022 figures show that diverse companies earn 2.5 times higher cash flow per employee and inclusive teams are more productive by over 35%.
And if these percentages seem a bit relativist, how about some harder numbers? As a result of the Women in Sales initiative at Heineken, representation of female senior managers in the sales function grew from 9% in 2020 to 19% in 2022. In the same period, Heineken's revenue increased from €19.715 billion to €28.719 billion.
Translation? Diverse teams aren’t a charity project: they’re a strategic advantage.
DEI isn’t about lowering standards; it’s about broadening the talent pool, eliminating bias, and giving everyone a fair shot at proving their qualifications and contribution.
Apple’s board rejecting the NCPPR’s call to backpedal on DEI is more than just the right move - it’s a signal.
The ugly truth is that companies are dropping DEI because they never understood or believed in it. There were reputational, tax and commercial incentives to do the right thing, that are now being removed (and in some cases, reversed).
You have to question if these organisations were ever comfortable with what was being created and if they are now more happy being able to be more ‘authentic’ to a set of values that do not include diversity or inclusion.
But there is masses of evidence that those companies that are just following this reactionary piper, will soon come to regret their decisions. For businesses in industries where customer contact is direct, or greatly influenced by brand values (retail for example), any DEI cuts will translate quickly to lost customers.
This is the moment to lean in and protect rational and data-based decisions. The future belongs to the bold, not the backward. And if some folks can’t see that, they’re going to get left behind.
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