Last Updated on August 5, 2025 by Bertrand Clarke
A Shifting Landscape for DEI
In 2025, corporate America is navigating a complex and evolving landscape for diversity, equity, and inclusion (DEI) initiatives. A recent study by The Conference Board reveals that major U.S. companies are rethinking how they communicate and implement DEI strategies, not out of retreat but as a strategic pivot to align with changing political, legal, and social dynamics. This shift, observed across S&P 100 and S&P 500 companies, reflects a deliberate move to embed DEI more deeply into governance and operations while reducing public-facing rhetoric that has drawn scrutiny. Far from abandoning DEI, businesses are finding innovative ways to sustain their commitments while adapting to new expectations. This article explores how companies are recalibrating their approach, the drivers behind these changes, and what it means for the future of inclusive workplaces.
The Numbers Tell the Story: A Decline in Public Disclosure
The Conference Board’s 2025 report, conducted in collaboration with ESGAUGE, provides a detailed snapshot of how DEI communication has changed. Among S&P 100 companies, 53% have adjusted their DEI messaging in major filings, such as Form 10-K reports, compared to 2024. The use of the term “DEI” itself has plummeted by 68% in these documents, signaling a move away from explicit terminology that has become politically charged. Additionally, 21% of these companies have scaled back or eliminated DEI-related metrics and targets, such as specific goals for workforce diversity or pay equity.
Across the broader S&P 500, transparency on diversity metrics has also waned. Disclosures about women in management roles dropped by 16%, while reports on the overall share of women in the workforce fell by 14%. At the board level, gender diversity disclosures declined by 22%, and racial/ethnic diversity disclosures saw an even steeper drop of 31%. In a striking shift, companies with no disclosure on board gender diversity jumped from 1% in 2024 to 29% in 2025, and those with no disclosure on board racial/ethnic diversity rose from 3% to 34%. Pay equity disclosures have also narrowed, with 30% of S&P 100 companies limiting the scope of such reports compared to the previous year.
These numbers might suggest a retreat from DEI, but the reality is more nuanced. Andrew Jones, Principal Researcher at The Conference Board and co-author of the report, emphasizes, “This shift in public disclosure doesn’t signal companies are abandoning DEI. Rather, they’re selectively reframing commitments, reducing public exposure, and embedding oversight more quietly yet firmly into governance and human capital management.” This approach reflects a strategic response to a polarized environment where DEI initiatives face heightened scrutiny from political and regulatory forces.
Why the Change? Navigating a Polarized Environment
The recalibration of DEI strategies comes amid a complex backdrop. In 2025, political pressures, amplified by executive actions and public discourse, have put corporate DEI programs under a microscope. For instance, executive orders from the Trump administration, as reported by Forbes in April 2025, have pushed companies to align with federal guidelines that limit certain DEI practices. High-profile companies like IBM, Walmart, and Citigroup have adjusted their policies, with some renaming DEI initiatives to terms like “culture of belonging” or “talent management and engagement” to avoid backlash while maintaining the essence of their programs.
Social media platforms, particularly X, have also played a role. Anti-DEI activists, such as Robby Starbuck, have targeted companies like Pepsi and Victoria’s Secret, prompting swift changes in public-facing DEI language. Despite these pressures, a December 2023 survey by The Conference Board found unanimous support among nearly 200 chief human resources officers for maintaining or intensifying DEI efforts, with 63% actively seeking to diversify their workforce further. This suggests that while public rhetoric is softening, internal commitments remain strong.
Legal considerations are another driver. Companies are balancing the need to comply with emerging regulations while addressing stakeholder expectations, including those of institutional investors who value diversity as a driver of long-term performance. Ariane Marchis-Mouren, Senior Governance Researcher at The Conference Board, notes, “The decline in board diversity disclosures reflects a recalibration as companies navigate heightened scrutiny. While greater caution is understandable, a full retreat from transparency risks alienating key stakeholders.”
Embedding DEI into Core Operations
Rather than abandoning DEI, many companies are integrating it more deeply into their operational and governance structures. The Conference Board report highlights a significant uptick in formal board oversight of DEI, with 79% of S&P 500 companies updating their board or committee charters to include DEI oversight in 2025, up from 72% in 2024. This shift indicates a move toward institutionalizing DEI as a core component of corporate strategy, rather than a standalone initiative.
For example, companies are embedding equity into leadership expectations and workplace culture. At a June 2025 event hosted by The Conference Board, leaders like Sherri Crowley, Chief Culture and Values Officer at HCA Healthcare, emphasized the importance of aligning DEI with broader business goals. “For inclusion efforts to be sustainable, they must be part of the way a company operates,” Crowley said. This approach involves fostering cross-functional collaboration, engaging middle management, and leveraging data-driven strategies to demonstrate DEI’s impact.
Innovative practices are also emerging. Some companies are using AI to enhance accessibility and champion neurodiversity, while others are focusing on intersectionality to address overlapping challenges like class disparities and generational differences. These efforts aim to create workplaces that reflect true diversity while delivering measurable results.
The Business Case for DEI Remains Strong
Despite the shift in messaging, the business case for DEI remains robust. Underrepresented communities wield over $5 trillion in collective spending power, driving trends and shaping industries, according to The Conference Board. Companies that fail to engage these consumer bases risk missing out on significant growth opportunities. Moreover, diverse teams have been shown to enhance innovation and decision-making, giving companies a competitive edge in a global market.
Retail Dive reported in September 2024 that while some companies have scaled back DEI language, the vast majority continue to prioritize it as a growth driver. “DEI isn’t just about compliance—it’s about building a workforce that reflects your customer base and drives innovation,” said Nate Delesline III, a retail analyst. This sentiment is echoed by industry leaders like Chantée Eldridge, Chief DEI Officer at Strada Education Foundation, who advocates for data-driven approaches to showcase DEI’s positive impact.
Looking Ahead: A Resilient Future for DEI
As companies move into 2026, the focus is on resilience and adaptability. The Conference Board’s research suggests that leaders must balance legal defensibility with stakeholder expectations while maintaining a long-term commitment to inclusive practices. Practical strategies include leveraging scenario planning to align DEI initiatives with changing demographics, fostering cross-functional collaboration, and equipping leaders to champion diversity authentically.
Events like the 7th Annual Diversity & Inclusion Conference in London, scheduled for September 2025, underscore the global momentum behind DEI. The conference will explore trends such as AI-driven inclusion, intersectionality, and multi-generational collaboration, offering actionable insights for organizations aiming to stay at the forefront of inclusive practices.
Conclusion: A Strategic Evolution, Not a Retreat
The evolution of DEI in 2025 is not a story of retreat but of strategic adaptation. By reducing public-facing rhetoric and embedding DEI into governance and operations, companies are navigating a challenging landscape while maintaining their commitment to inclusive workplaces. As political, legal, and social dynamics continue to shift, the ability to balance transparency, resilience, and measurable impact will define the future of DEI. For businesses, the message is clear: DEI remains a critical driver of growth and innovation, but its execution must evolve to meet the demands of a rapidly changing world.
