Weathering the Backlash: time for pragmatism not panic in corporate comms

Since President Trump’s return to the White House in November 2024, corporate diversity, equity and inclusion (DEI) initiatives have entered a new phase — retreat. The Financial Times reports that 90% of S&P 500 firms filing annual reports since the election have reduced or removed references to DEI. Global firms are dismantling DEI teams, rewriting commitments, and quietly dropping targets.

This is not a US-only phenomenon. Last week, the Mayor of London revoked a contract with Accenture, citing the firm’s retreat from DEI as incompatible with the values of the Greater London Authority. The message is clear: political scrutiny of corporate behaviour has reputational and commercial consequences. And silence on issues of equity, diversity and inclusion could be read by customers, stakeholderes and employees as alignment with a particular political stance.

The corporate response cannot be to abandon hard-won progress on DEI. As Simon Fanshawe writes in The Power of Difference, inclusion is not a “moral luxury” — it is essential to performance. When organisations empower and support diversity of thought, they solve problems more effectively and build resilience into decision-making.

So rather than panic or withdraw, this is the moment to make the case — again — that equity, diversity and identity are not about a ‘culture war’. They are foundational to growth, innovation, and value creation.

These issue are complex and highly contested as we’ve seen in the response to last week’s UK Supreme Court ruling. This decision has inflamed a widely polarised debate, strained institutional trust, and deepened confusion around the meaning of inclusion. All far from protecting the rights of those vulnerable and marginalised in our society.

It points to the fact that debates on identity, belonging and inclusion are not abstract issues irrelevant to corporate behaviour. They are deeply personal and require empathy, support, and space to allow people to navigate the complexity safely. This is where leaders and corporate communicators have a vital role: being visible, open, and explicit about their organisation’s commitment to DEI — not only when it is popular, but also when under pressure.

Again, this is not optional. A recent episode of the HBR On Strategy podcast makes the case that effective leadership depends on demonstrating organisational behaviours under stress. Authenticity, in this context, becomes strategic.

So what should corporate communicators do?

1. Reframe DEI as a strategic asset.
Link it directly to performance, talent retention, and market relevance — not sentiment. Make the business case unavoidable.

2. Communicate with clarity — consistently.
Ambiguity breeds backlash. Use precise, evidence-led language to articulate positions and explain the “why” behind decisions.

3. Prepare leaders to lead on diversity.
Empower leaders to speak credibly and confidently about diversity — including encouraging debate and answering difficult questions with clarity and care.

4. Anticipate political intervention.
Stay alert to macro-political shifts and regulatory developments. Scenario-plan for how policy and public discourse may shape corporate expectations.

Withdrawing from DEI may feel like the path of least resistance — but it introduces new risks. It suggests inconsistency. It creates uncertainty. And in an age of radical transparency, the organisations that thrive will be those that communicate clearly, lead visibly, and stay aligned to both principle and strategy.