The DEI Backlash: A Global Perspective

Why DEI matters now more than ever – insights on staying agile amid changing regulations and perceptions.

Diversity, Equity, and Inclusion (DEI) is undergoing rapid transformation. Particularly in the United States, shifting legal and political pressures have thrust these initiatives into the spotlight. But, despite the backlash, what we’re really seeing is an evolution, not a retreat.

This was the focus of a WeQual roundtable on March 4, attended by an international panel of experts and more than 200 guests from global Fortune 1000 companies. Participants came for insights on staying agile amid changing regulations and perceptions.

“When you talk to DEI offices and look at the details of large US organizations' current activities, many of them aren’t doing full blown roll back of their DEI initiatives, but rather removing the least effective initiatives with the highest litigation risk. It’s more classified as renaming and rebranding rather than a full-blown rollback."

Anders Rodenberg Chief Executive Officer at Denominator

At WeQual, we believe these shifts present an opportunity to strengthen how we already embed inclusion into our corporate programs. In EMEA and APAC, gender balance quotas, supplier diversity targets, and ESG requirements are expanding, proving DEI isn’t a fleeting trend but a strategic pillar with a real impact on business performance and reputation.

Ultimately, the question isn’t whether DEI matters – it does – but how organizations can adapt and execute their strategies to stay ahead in a high-stakes world.

Why DEI Matters Now More Than Ever

DEI is not a check-the-box exercise but a powerful engine for sustainable growth, innovation, and brand strength. Even where doubt persists, diverse perspectives give companies an edge they can’t afford to dismiss. Organizations that fully integrate DEI into their core strategies reap the benefits of fresh thinking, deeper trust with customers, and stronger teams.

“Companies need to think about how they create an inclusive environment where every employee feels valued, respected, and empowered to bring their unique perspective.”

Paddy Santosh VP Global Head of Learning, DEI & Organizational Effectiveness at Olam Agri

Extensive research shows that diverse teams make more insightful decisions and spark creative problem-solving—critical advantages in volatile markets. Meanwhile, employees increasingly demand that leaders back up DEI promises with real results. A true inclusivity ethos attracts and retains top talent, creating a culture where people feel they can contribute at the highest level.

Investors, suppliers, and consumers also align with organizations that prioritize social responsibility and ESG commitments. When approached sincerely, DEI becomes a multiplier for success and reinforces credibility, talent pipelines, and resilience. In short, DEI is better for business, people and the planet.

Politics, Perception, and Legal Pressures

Despite these benefits, U.S. businesses still feel the ripples of Executive Orders introduced under the Trump administration, notably limits on certain DEI initiatives for federal contractors. This compelled many companies to pare down or rebrand DEI activities, worried about legal risks and federal contract eligibility. Leaders struggle to balance compliance with the urgency to maintain inclusive workplaces, often opting for caution over candor.

“Companies must adapt regionally, being more cautious in the US, but bold elsewhere with language shifts.”

Mark Bateman CEO at WeQual

Meanwhile, many global markets—especially in EMEA and APAC—are doubling down on mandates for gender parity, supplier diversity, and ESG reporting. Multinationals must reconcile U.S. constraints with more progressive approaches abroad. At WeQual, we see how careful navigation can become a competitive edge if organizations hold tight to core values while tailoring their language and tactics by region.

This backlash hasn’t ended DEI; it’s simply underscored the importance of agile, regionally aware strategies that don’t compromise on inclusion.

Language Shift vs True Rollback

As legal parameters evolve, some organizations are replacing words like ‘affirmative action’ or ‘diversity quotas’ with terms like ‘inclusive talent strategy’ or ‘expanding pipelines’. This can reduce controversy yet test whether companies remain committed to real change.

"It’s about evolving the language, rather than a vanishing of the language."

Tiffany Chown VP of Human Resources at ORICA

A superficial rebranding squanders the chance to prove genuine progress. Properly handled, though, new language can re-energize accountability and outcomes—provided leaders measure impact, report transparently, and dismantle systemic barriers. Reframing DEI can be more than a protective move; it can renew purpose and reinforce inclusion as a cultural anchor.

Addressing Tokenism and the Meritocracy Debate

Today’s challenge isn’t whether DEI belongs in business, but how to ensure it truly empowers individuals rather than just meeting targets.

“Tokenism is the illusion of inclusion.”

Paddy Santosh VP Global Head of Learning, DEI & Organizational Effectiveness at Olam Agri

Focusing solely on numbers while ignoring bias risks showcasing ‘diverse hires’ without valuing their voices. Although some advocate for a ‘pure’ meritocracy, uneven starting points demand systems that actively address barriers.

“People are clever enough to look through whatever you call your DEI activities… They really want to know how you evidence it.”

Tamara Box Partner, Head of Structured Finance at ReedSmith

Three Levels of Thinking

We often see three maturity levels in business challenges. The first is reactive, meeting minimum standards. The second is strategic, embedding inclusive practices that protect the organization. The third is transformational, making any business challenge, including DEI, a core driver of innovation and resilience.

“Level One thinking is reactive. What do we have to do to comply? Level Two thinking is more strategic. How do we protect the company whilst maintaining an inclusive culture? Level Three thinking is transformational. How do we create a business that thrives because of inclusion, not in spite of it?”

Mark Bateman CEO at WeQual

At WeQual, we encourage leaders to adopt a transformative perspective. By weaving inclusion into hiring, team structures, and leadership pathways, companies set the stage for lasting growth and adaptability.

Conclusion: DEI’s Future is Evolving, Not Disappearing

Even with legal complexities and shifting language, DEI remains a powerful force in global business. Organizations that stay true to genuine inclusion and lift diverse voices gain a decisive edge. Far from fading, DEI is turning into a defining factor that attracts purpose-driven talent and loyal customers.

“I think we should all focus on ensuring our internal values drive a better and more sustainable company. When we align with our values, we create an environment that fosters employee growth, a positive workplace culture and strong results.”

Alberto de Armas VP Organization and Human Resources at CEMEX

The road ahead demands bold leadership, thoughtful evolution, and a real commitment to people. By embracing authentic inclusion – whatever you call it – leaders build organizations that don’t just comply but thrive on the creativity, empathy, and innovation that diversity brings. Instead of a rollback, this is the time to double down and secure DEI as both a strategic imperative and a shared responsibility.

Find out more about WeQual, and how we can support your organization, or contact us for a chat. 

Thanks to our Panelists:

Tiffany Chown

VP of Human Resources at ORICA

Tiffany leads HR for Orica’s business in 26 countries, focusing on DEI, organizational design, and executive coaching to create high-performance workplaces. Tiffany was a Finalist in the WeQual Awards, APAC 2024 in the People category.

Anders Rodenberg

Chief Executive Officer at Denominator

Anders Rodenberg is the CEO of Denominator, the leading data provider for measuring social and diversity performance worldwide. He is an experienced speaker and subject matter expert on data, risk management, and diversity, speaking at global events including UNGA, COP, and the World Economic Forum.

Paddy Santosh

VP Global Head of Learning, DEI & Organizational Effectiveness at Olam Agri

Paddy is a global HR thought leader with expertise in talent, learning, diversity and performance. She has worked across Citi, Standard Chartered, Pfizer, Dyson and more, shaping high-performance cultures and driving D&I advocacy.

Alberto de Armas

VP Organization and Human Resources at CEMEX

Alberto oversees the global HR function at CEMEX, leading a team across 30+ countries and driving corporate HR strategy. He is a member of the DEI Advisory Committee, ensuring alignment with company values. Previously, he held roles at W.W. Grainger and GE.

Tamara Box

Partner & Former Managing Partner, EME at Reed Smith LLP

Tamara is a partner at Reed Smith and Chair of Interpath Advisory. She holds multiple board and advisory roles across finance, law, and diversity. She is also a valued Executive Interviewer for the WeQual Awards.

Book a Call 

We’ll contact to you arrange a quick chat about how we can help. 

Subscribe To Our Newsletter