Companies Quietly Ramp Up DEI Efforts Amid Political Turmoil

Companies haven’t given up on their diversity, equity and inclusion programs despite the divisive politics surrounding them, new data shows.

Indeed, most companies plan to invest more in DEI initiatives over the next two years, according to survey results released Monday by global executive head-hunting firm Bridge Partners. Uncertainty over the outcome of the November presidential election—and its repercussions—means executives may make these investments quietly, however, said Tory Clarke, co-founder and partner of Bridge Partners.

Bridge polled 400 executives and human resources heads at companies with at least $25 million in revenue or more than 250 employees in April 2024. In 2023, the firm’s first DEI survey showed similar resilience in the face of heightened political tension. But at the time, only 2% of respondents said they plan to cut back on DEI initiatives, compared with 4% this year.

The findings of the survey were released while DEI practitioners face intense scrutiny by conservative commentators, activist investors and politicians.

Clarke said companies may “dial back” their rhetoric and how they talk about diversity in their businesses in the short term, but the two-year investing commitment shows a longer-term dedication to DEI.

“The two-year run has given leaders an opportunity to think ‘This is a cycle. It will probably will get better; and when it does, I haven’t given up on this,’” Clarke said. “There’s good news there because it probably isn’t going away, but there’s bad news there in that it probably is being dampened over the course of—let’s say the rest of 2024.”

Corporate shift

The May 2020 Minneapolis police murder of George Floyd sparked the rise of the corporate DEI movement. Any company that didn’t have a DEI program at the time of the tragedy quickly built one.

In the years that followed, corporate America has seen a “correction” of sorts where the frenzy has calmed, said Bridge Partners Chief Business Officer Arthur Woods.

“Three or four years ago, we had a false perception that the adoption curve has shifted massively to the left, there were many more people on board,” Woods said. “It’s kind of corrected itself now in this new climate.”

Companies are nonetheless maintaining their programs and the vast majority even plan to grow them, the survey found. Almost three-in-four respondents said they expect to “further build and enhance” their DEI programs. Nearly 95% of respondents said DEI is important for recruiting, hiring and retention.

Less than half of respondents indicated their executive team fully reflects the diversity of their employees and customer base, according to the survey. The solution, according to Clarke, is to build in a pipeline of diverse leaders, but that’s often “long-haul work,” she said.

“You can make spikes in the short term, but the longer-term piece has to be consistent,” she said. “If people keep giving up on it, then you go backwards.”