Diversity, Equity, and Inclusion (DEI) was once pitched as the business world’s moral compass — a way to create workplaces that were fair, respectful, and representative of society at large. In theory, few would argue against the ideals. I've written about them in previous articles. In practice, however, DEI has become a lightning rod in boardrooms and break rooms alike. Depending on who’s in charge, it can be a thoughtful framework for opportunity, or a hollow performance to satisfy social pressures. The gap between intention and execution is where the trouble begins.
At first, diversity, equity, and inclusion seemed like reasonable business principles. But the program itself is only as effective as those running it. Over time, even the terms themselves have been hijacked. “Diversity” and “Inclusion” were once straightforward concepts, but in many organizations, they’ve drifted into buzzwords whose meanings shift depending on who is talking.
And “equity”? That’s the slipperiest of the three. Ask a dozen trainers, consultants or HR professionals what it means and you'll get a dozen different answers. Some leaders view this curriculum simply as a checkbox, while others are genuinely committed to the ideals of fairness and opportunity.
This politically correct program is on its way out, but dying a slow death. Anheuser-Busch learned the hard way when they abandoned the identity of their Bud Light patrons, even calling them “frat boys.” It did an about-face, but that didn’t stop the brand from losing over a billion in sales. Disney discovered the same cost of taking sides when its clash with the Florida governor over education policy alienated families and triggered political battles that damaged both its reputation and bottom line.
The truth is, this well intentioned concept has morphed from an affable civility project into a sprawling corporate mandate, one that often prioritizes optics over outcomes. In many organizations, DEI is no longer about cultivating genuine understanding or opportunity; it’s about compliance, appeasing public perception, and avoiding bad press. The focus has shifted from building stronger teams to managing narratives, and somewhere along the way, the human element got lost.
Another intrusive practice is ESG (Environmental, Social, and Governance), a framework popularized by financier George Soros. Like DEI, it has taken root in corporate culture, often in ways that are counterproductive to organizational goals. But it’s all about organizational conformity. HR as well as the C-Suite have been reacting to social norms rather than actually leading their companies.
This philosophy of universal equilibrium has certainly had its flaws, as I write about in my book, The Individual Team: How Fairness Wrecked the Workplace. When people are compelled to behave a certain way, it creates resentment. With resentment, you get a breakdown in morale, passive resistance, and even disengagement from the very goals leadership claims to promote. Before long, people are asking, “Why are we doing this, anyway?”
Whenever one program has so much confusion around it — and on all levels — it’s probably best to scrap it. Yet many executives continue to cling to a failed initiative.
Government spending offers a similar cautionary tale. When Pete Buttigieg was Secretary of the Department of Transportation, an estimated twenty BILLION dollars were spent each year on diversity. That equals roughly twelve percent of the total operating annual budget.
Had the roads and skies become safer at that time? Was the shortage of air traffic controllers addressed? Did the TSA become more efficient? Most who travel often would say no. In the end, what does DoT have to show for the estimated total of eighty billion spent in Buttigieg’s tenure on a theoretical debacle?
Like many corporate initiatives, DEI’s legacy will depend less on its talking points and more on its tangible results. If it delivers measurable improvements in team cohesion, innovation, and opportunity, then it earns its keep.
But if it remains an expensive, divisive checkbox that distracts from core business priorities, it will die. As will the companies which continue to follow a flawed ideology. Leaders must decide whether to recalibrate DEI into something practical and purposeful, or admit that it has outlived its usefulness. The worst choice is pretending it’s working while many know otherwise.
©2025. Blaine Little is an author, speaker, and coach, and the Founder of Momentum Seminars Training & Coaching. We work with organizations of all sizes to build stronger leaders, better teams, and clearer communication. Learn more at www.MomentumSeminars.com.