Corporate America’s retreat from DEI is short-sighted—and just plain dumb

Dissonance is inescapable. Companies like Lowes, Jack Daniels, and Harley Davidson are withdrawing from DEI despite a drumbeat of reminders that their customers and future employees are very different from ours. The labor movement is reducing “equity” in its workplace, as even Gen Z views DEI as a must-have workplace.

And yet, it’s no secret: The youth of the world, in all its various aspects, have a major role to play today and in the future—as leaders, workers, culture creators, and consumers—if only business will listen. If not, we risk lack of efficiency, failure to appeal to our audience or our customers, and cultural mistakes in a multicultural society.

The easiest way to lose the future is to avoid its citizens today—people who increasingly include those who look or speak differently from those in power, people whose ways were different, and whose experience with traditional institutions was not always easy because of their race, class, gender, sexuality, gender identity/ speech, faith, or other identity.

To pretend that diverse people will not one day become employees and customers is to believe that it is possible to stop world change by ignoring what is already happening. When a business retreats from diversity, equity, and inclusion (DEI), it loses its connection to the future.

Here’s what we invite you to do by refusing to be included.

Difficulty attracting and retaining top talent

A large applicant pool provides a great opportunity to hire strong individuals who have the ability to help their employer succeed in a diverse society. But companies have to find them first. Gen Z is not just about diversity, its members are also looking to business to champion the goals of inclusion and belonging. Among those between the ages of 18-29, 68% said the focus on DEI is a good thing, according to a Pew Research Center survey. The average for all adults from all age groups was 56%. If you look around the world, consider the major population centers: the median age in Africa is 18.8, while in South America and India, it is just over 32. Today, Gen Z is estimated to make up about 27% of the global workforce, jumping to 31% in 10 years.

A heavy burden on business

The business has voiced its strong support for racial profiling ahead of the US Supreme Court’s 2023 decision to strike down affirmative action in higher education. That’s because historically, employers have relied on colleges and universities to prepare future workers to compete in a global society. Schools created a microcosm of the world within their gates, which fostered empathy, curiosity, and cultural awareness among the students’ diverse classmates—an important skill for workers in a global economy. As universities face new admissions restrictions, it will be up to business to develop and train new staff on how to communicate and innovate in a diverse world. The business will also be tasked with filling the skills and knowledge gaps that a highly diverse workforce will inevitably have.

Greater vulnerability during the next widespread social disruption

Youth are both our future and our present. The pandemic has made this painfully clear when service workers – young people of color – working in grocery store fronts, childcare roles, and other hourly wage positions are considered “essential workers” but treated as disposable. To fill these jobs, the ones that keep society and the economy healthy, will need to deeply engage young people in all their diversity and encourage their participation. We cannot move forward without their help.

But what about product misrepresentation, viral social media attacks, heated rhetoric from politicians? Yes, they are disturbing. Who wants to find themselves in a culture war? But installation attacks are nothing new.

In 2020, companies responded to the public’s fear of the killing of George Floyd and other acts of racist violence against black people by the police. Since then, the feedback loop has included business support for DEI, expressed through recruiting, training, marketing, product development, and community advocacy. That backlash prompted some companies to withdraw. This was expected. But be aware that the depth of Tractor Supply Company’s abandonment of DEI in the community includes immediate, widespread negative feedback on the company’s decision. Pushing and working towards an inclusive society has always been there.

It sends the wrong message

Miriam Warren, chief diversity officer at Yelp and chair of the Yelp Foundation board, warned that retreating from inclusive practices could hurt morale and affect recruitment.

“In a dynamic labor market, what does that mean for potential talent from underserved communities?” he wrote. “How can these workers ever trust an organization that has a reputation for turning their backs when times get tough?”

When a company takes steps to embrace everyone and create a sense of belonging, it is rewarded with growth, innovation, and a permanent place in the public imagination. And if it doesn’t? That company can expect to fall behind the competition. Installation is active. The details keep reminding us.

Social progress has never been linear. But our continued focus remains essential to the survival of a free society. Indeed, DEI’s efforts can reasonably be seen as a continuation of the Human Rights movement. The role of business remains central – and the risks to business are obvious when leaders step back.