There was a time not too long ago when many companies spoke about diversity loudly, showed off their DE&I initiatives, and most brands were keen to create campaigns that were recognisably inclusive. That all started to change after the US election when brands started to phase out their initiatives and Elon Musk went on record labelling DE&I as ‘racism’. Since then, Meta has decided to get rid of fact-checkers, which is likely to unleash more hate speech on the company’s social media platforms, and even more brands have rolled back commitment to equality and inclusion. 

Sharon Flaherty, CEO of inclusive communications agency Folk, based in Cardiff, can see how the commitments that were in place just a few months ago are all changing. “A wave of anti-DEI sentiment is sweeping parts of the corporate world, and many high-profile companies and organisations are going quiet. Some are pressing pause on years of diversity and inclusion work.

“Already this year, we’ve had the news that McDonald’s is ending some of its diversity practices. This follows similar moves from the likes of Walmart, John Deere, and Harley-Davidson in 2024,” notes Sharon. 

Sharon thinks that this is a sign of things to come as the shift is emboldening politicians and, in turn, businesses: “Scarcely a week goes by without a new spin on this trend, one which is fed by misinformation and fearmongering from US-based public figures and extremists. Republican lawmakers have introduced or passed bills to restrict DEI initiatives. Donald Trump is expected to crack down on diversity initiatives soon after taking office. And an ‘anti-woke’ investment fund has launched to target companies with high-visibility DEI initiatives.”

It’s not just the US; the globalised economy and cultural spheres mean that this sentiment is likely to land on our shores soon too. Sharon sees it here already, saying “this fear has begun to spread to the UK, fuelled by heavy press coverage on both sides of the Atlantic. This threatens progress towards improved diversity and inclusion in the UK working world.”

Still, Sharon doesn’t think that the UK is facing the same doom and gloom. “Despite all the noise, there isn’t yet much evidence that UK firms are following US companies and turning their backs on DEI. There remains a commitment to DEI in the UK working world. Even in the US, plenty of businesses are still committed to DEI. Data on US firms from Paradigm showed that even amid last year’s backlash, companies continued to make progress on many of their DEI initiatives,” she says. 

“Some have even been brave enough to admit as much — usually by clearly spelling out the business value of their diversity and inclusion initiatives. For instance, Jamie Dimon, the hugely influential chief executive of JPMorgan Chase, has also crisply argued the business case for DEI. He said, ‘It’s good for business. It’s morally right. We’re quite good at it. We’re successful.’”

Some businesses are seeing the need and opportunity to necessarily double-down on their commitments at such uncertain times, with Sharon pointing to the software giant SAP and beauty retailer Sephora, with Sephora’s executive Artemis Patrick giving the reason that “it’s just smart business.”

What about the companies loudly taking a step back? Sharon thinks “it suggests they were never really committed in the first place.”

“Meanwhile, in the UK, businesses, charities, NGOs, and other public sector organisations are still investing in DEI initiatives and weaving it into the fabric of their marketing and communications departments. We know this at Folk, as they are coming to us more than ever to find out how to do so. Organisations we have worked with in the past 12 months to improve the inclusiveness of their comms and marketing span a wide range of sectors, from investment to public sector to charities like Macmillan Cancer Support,” she adds. 

“We also still see high-profile firms publicly standing up for diversity. In fact, inclusion was a central theme among last year’s UK winners at Cannes, such as Dove’s Turn Your Back campaign (the brand that has spent 20 years campaigning for ‘Real Beauty’ is unlikely, one would hope, to turn its back on diversity). More recently, we saw Jaguar, which – love it or hate it – embraced diversity in its advertising for its recent brand transformation.”

There’s support from many directions for DE&I efforts, suggesting that people simply feel like this is the right lens through which to view the world. “Workers in the UK remain broadly supportive of DEI efforts. A YouGov survey revealed that 66% of UK workers consider the acceptance and inclusion of employees from all backgrounds as important when evaluating job opportunities,” Sharon says. 

Sharon is firm: “The business case for DEI initiatives remains strong. In fact, according to research published by LSE in October, DEI efforts within firms are linked with either positive or neutral financial outcomes for firms.”

Still, it’s not a time for businesses to sit back and do nothing in this environment. “While plenty of organisations remain committed to DEI, the US backlash is still damaging, as it has created a trend for organisations to stay quieter about their DEI initiatives. This is dangerous. Inclusion efforts must be both intentional and vocal, as they allow organisations to lead as advocates for positive change. This advocacy can inspire others to prioritise diversity while using their platforms to challenge inequities,” Sharon explains. 

Silence is not a strategy to adopt right now, and Sharon believes that “remaining silent not only weakens a brand’s credibility but also risks handing the narrative to critics and fearmongers. In other words, we need more positive DEI news stories to counter the backlash narrative.”

Smart UK businesses should soon realise that staying quiet isn’t just a missed opportunity – it’s a competitive disadvantage. Whatever happens in Trump’s America in the coming months, we hope to see bold British brands step into the spotlight, proudly showcasing their DEI commitments.”