It’s no secret the current climate is increasingly hostile to diversity, equity and inclusion (DEI) initiatives. But real leaders know that inclusivity isn't just a moral duty – it’s good business. According to data, companies that foster diversity and inclusion perform better, innovate faster, and have a lower likelihood of lawsuits.
As a result, businesses big and small are standing firm in their beliefs. Board-level diversity at the top 50 Fortune companies has continued to grow and our research at Breezy shows that the number of employers looking to retain diverse talent has more than doubled from 21% in 2023 to 47% in 2024.
But even with a firm commitment, the future is anything but clear. If it feels like you’re walking a political, social, and legal tightrope with DEI – you’re not alone. We’ve rounded up the latest insights on the backlash, plus five examples from leading employers navigating the storm.
DEI backlash: How did we get here?
In 2020, the murders of George Floyd, Ahmaud Arbery, Breonna Taylor, and others sparked a wave of DEI initiatives across the US. A flood of Fortune 1000 companies promised to commit themselves to racial equity, launching DEI programs to uplift employees and track their results.
But in June 2023, the Supreme Court ruled against affirmative action in university admissions practices, and anti-DEI agitators turned up the pressure on companies to scale back their inclusion initiatives, with some even launching formal EEOC investigations into “woke corporations”.
Then, in his first few days in office, President Donald Trump signed a barrage of executive orders designed to target diversity initiatives, starting with the federal government’s diversity, equity, inclusion and accessibility (DEIA) programs.
But while some companies are starting to rebrand, roll back, or obey in advance – not every employer is throwing in the towel.
Is DEI going away?
Let’s be honest – no brand who stuck with DEI beyond peak hype cycle in 2020 did it for fun. They did it because it's a practical, ethical strategy that delivers real outcomes. And when executed carefully and thoughtfully, DEI makes companies better.
Research shows that not everyone who “goes woke, goes broke.” According to Unstereotype Alliance’s global study, advertising campaigns that are more inclusive have an overall positive impact on profits, sales, and brand worth.
From personal care to pet food, portraying people from a range of different backgrounds persuades 62% of buyers to make a purchase, while boosting shopper loyalty by 15%.
As more consumers begin to vote with their wallets by boycotting brands that give in to the pressure, shareholders at major employers like John Deere, Delta, Costco and more are holding the line.
5 inspiring DEI initiatives from leading employer brands
Is workplace equity really the enemy of excellence? For the following five companies, the answer is a hard no. Let’s take a look at what’s working for the brands staying the course with DEI.
1. Costco
Costco has repeatedly defended its inclusion programs against bad-faith legal action. In January, their board continued this trend, writing a statement so convincing that 98% of shareholders voted to uphold its DEI policies.
By positioning DEI as integral to business growth and operational success, Costco highlights the importance of supplier diversity and credits DEI for its ability to attract and retain top talent.
“This capacity is critical because we owe our success to our now over 300,000 employees around the globe,” the board explains.
This commitment to excellence shines through in Costco’s stunningly low 8% turnover rate, which stands out against the retail industry’s 55% average.
The result of their commitment? Costco profits and stock are only getting stronger. During the February 28th Economic Blackout Day, Costco saw a massive increase in traffic compared to Target.
2. Ben & Jerry’s
Expressly committed to LGBTQ+ rights, racial justice, refugee dignity, and more, Ben & Jerry’s is a long-time champion for social justice.
Whether they’re expanding ballot box access with Black Votes Matter, extending full benefits to partners of same-sex employees, or dedicating an entire page on their website to sharing resources about Dismantling White Supremacy, Ben & Jerry’s has always walked the walk.
“While many of us are looking for the trade-off between purpose and performance, the data indicates that purpose actually improves performance,” CEO of Jump Associates, Dev Patnaik, tells Forbes.
In January, Ben Cohen and Jerry Greenfield sued Unilever, alleging that its parent company “inappropriately halt[ed] Ben & Jerry’s social mission” by silencing their attempts to speak out about Gaza and the Trump administration.
Despite MAGA boycotts, the brand’s strong commitment to social values has had a positive impact on its performance. In 2020, Ben & Jerry’s was named the top ice cream brand in the US, with sales nearing $900 million. Fast forward to 2025 and it remains one of the two most popular ice cream brands in the country.
3. Lush
Opponents beware – Lush is dropping bath bombs in the war on DEI. The British cosmetics retailer temporarily renamed their three best-selling bath bombs in a ‘ballsy’ move against bigotry.
“[Lush is] not going to roll back on anything, and we wanted to make sure that we were visible in not rolling back,” Hilary Jones, global ethics director at Lush, told Adweek.
This isn’t the first time they’ve let their values shine through loud and proud. Lush has a strong history of corporate activism, from its Fair Trial My Arse campaign in 2008 to its 2011 Kiss & Tell campaign, the brand’s activities include a long list of human rights campaigns.
Even when the brand went anti-social in 2021 over concerns about content moderation and data collection policies on social media platforms, they still reported their highest-ever sales on record in December 2022.
So, what makes their approach so effective? First, they’re straightforward in their messaging – no hedging or trying to be diplomatic. The company works closely with trusted grassroots groups, has stayed consistent for years, and has the receipts to prove it.
Lush is responsible for building ten schools in Guatemala, getting prisoners released from death row, and raising over $850,000 for LGBTQ+ causes.
4. Delta
In 2020, Delta committed to recruiting, hiring and advancing one million Black Americans into jobs with competitive salaries over the next 10 years.
But unlike other companies, Delta hasn’t gone back on its promises. Earlier this year, the company reaffirmed its commitment to DEI. And when the administration blamed DEI for causing a Toronto crash, the airline vocally pushed back.
From revamping its apprenticeship programs to recruit entry-level employees, to recognizing the importance of anti-racism and gender inclusivity in in-flight communications, Delta is putting in the work to create a more equitable environment for everyone.
"We are steadfast in our commitments because we think that they are actually critical to our business," said Peter Carter, Chief External Affairs Officer at Delta Air Lines. "Sustainability is about being more efficient in our operations and really DE&I is about talent and that's been our focus."
According to their 2023 DEI report, Delta spent $559 million with Black-owned businesses and added closed captioning to over 1,000 hours of in-flight entertainment, showing support for customers with disabilities.
But if you think these investments are damaging the company’s bottom line, think again. The airline has reported higher than expected Q4 earnings and was predicted to have an even stronger 2025 until recent concerns about US economic uncertainty.
5. Patagonia
Patagonia was founded on rock-hard values and despite the backlash, it remains unmoved on DEI.
A self-proclaimed antiracist company with a history of environmental activism, Patagonia was started by mountain climber turned businessman Yvon Chouinard. From campaigning against genetic engineering to suing Trump for eliminating public lands in 2017, Chouinard’s leadership is powered by his convictions.
His boldest move yet? Giving away the company.
In 2022, Patagonia fully restructured its ownership, with Chouinard and his family giving their shares to climate groups and committing more than $71 million to environmental causes.
“We stand firm in support of our justice, equity and antiracism policies and practices,” the company said in a statement to CNBC.
But how has this impacted their brand? With an estimated value of around $3 billion and steadily growing profits, Patagonia proves that ethical leadership can be both sustainable and productive.
Staying the course with your DEI efforts
Policies come and go, but ethics are forever. In 2025, DEI is about so much more than setting up a few employee resource groups and calling it a day. Looking to the present and future, standing firm in your values is the best way to show your employees, customers and community you care.
And the best part is, you don’t have to be Patagonia or Ben & Jerry’s to build a workplace where fairness – not fear – drives the culture. By sticking to the commitments you’ve already made, you can create a sense of belonging that delivers real results for your business and community.
Ready to take control over your talent strategy? Visit our DEI Strategy Resources Hub for more information on inclusive hiring practices, building a thriving company culture, and more.
Top FAQs about the DEI backlash
Just want the shorthand? Here’s a quick recap of some of the most common questions about the current DEI climate.
Are companies abandoning DEI?
Anti-DEI executive orders have created a complex environment for private sector businesses that want to build inclusive workplaces. As a result, some business leaders are giving in and rolling back or modifying their inclusion efforts. However, many other companies – including Costco, Ben & Jerry's, Lush, Delta, and Patagonia – are staying the course and doubling down on DEI.
Why is there a backlash against DEI?
Opponents believe that diversity, equity, and inclusion policies are a form of “reverse discrimination” against white people, prioritizing race and gender over merit. However, proponents of DEI argue that it’s always been about merit. Companies doubling down on DEI are leveling the playing field so people from all backgrounds, including but not limited to historically underrepresented groups, have equal opportunities to succeed.
Why is DEI important?
DEI is built on the idea that everyone should have a fair chance to succeed at work, without fear of being labeled by things you can’t control, such as your race, gender, sexual orientation, or demographics like your age or where you went to school. It’s about making room at the table for qualified people from all backgrounds – not taking someone else’s seat.
What are some DEI strategies in 2025?
In 2025, companies are reaffirming their commitment to DEI despite pushback. Big-name brands like Costco, Ben & Jerry’s, Lush, Delta, and Patagonia highlight DEI as essential for attraction and retention, using their platforms to advocate for equity and justice.
