DEI under fire: How are companies handling social responsibility and equity? 

Tony Jaques writes that contrary to recent discourse, top organisations are strengthening their sustainability and equity commitments, urging organisations to adopt authentic, consistent strategies that resonate with both values and stakeholders to navigate uncertainty.


Image by angelinabambina | Freepik

Despite alarming headlines about companies backing away from addressing social awareness and equity commitments, such programmes are still critically important and are certainly not dying.

While the latest data shows mixed findings, there are more than enough reports to generate concern, such as Rolls-Royce announcing plans to scrap its Diversity, Equity, and Inclusion (DEI) programme, Target (US) sales and shares falling in a boycott after ditching DEI policies, and UK-based IR Magazine declaring firms are starting to question whether they should be coming out publicly on issues ‘that aren’t material to their operations’. Moreover, Leo Burnett’s 2024 Good Study shows 50 per cent of Australians would boycott a brand over its position on current wars. Only 39 per cent believe brands should take a stance on social and political questions.

In addition, the latest USC Annenberg Centre for Public Relations survey (half the respondents in the US and half elsewhere) revealed that the belief that companies have the responsibility to address social issues dropped from 89 per cent in 2023 to 52 per cent in 2025.

Looking forward five years, the same study found that while more than half the PR professionals (59 per cent) expect purpose-driven campaigns to increase and 49 per cent anticipate an increase in corporate environmental, social and governance initiatives, only 35 per cent expect an increase in inclusion programmes and a mere 34 per cent expect to see more companies taking a stand on social issues.

However, a counter-narrative is emerging. For example, the latest Gallup poll shows 51 per cent of American adults said companies should take a public stance on current issues, an increase from 38 per cent in 2024.

Moreover, a recent study from the Clarity Group has just reported 94 per cent of organisations view Environment, Social and Governance (ESG) as a business priority, and 50 per cent have made ESG goals more ambitious.

The survey – of directors and C-suite executives drawn evenly from Australia, the Netherlands, the UK and the USA – found companies are not backing down from commitments but are getting smarter, more ambitious and more strategic. 

More specifically, the study found Australian organisations are raising their sustainability ambition at a higher rate (58 per cent) than the global average. At the same time, 82 per cent of Australian small businesses reported sustainability reporting requirements to be a significant burden – more than in any other markets.

So, how to navigate through this morass of uncertainty, contradiction and risk? Consider the case of two companies using a transgender personality to promote a product. When Anheuser-Busch used a transgender influencer to promote Bud Light, the resulting uproar saw the brand lose an estimated US$350 million in sales and its ranking as America’s top-selling beer. 

By contrast, Brazilian cosmetics giant Natura hired a transgender actor for its Father’s Day campaign, and despite some backlash, their shares rose by 6.7 per cent, online sales jumped 225 per cent, and 100,000 social media followers were added.

The key lesson here is about knowing and adhering to your values. Natura’s actions were consistent with its long, visible record of support for diversity and inclusion, while Bud Light took many of its stakeholders by surprise and quickly disowned the promotion. 

The other lesson for the whole issue is about being smart and being flexible. For example, when McDonald's announced it would roll back its DEI initiatives, then explained in the face of a national boycott: “We changed some of the language that we’ve used around DEI, but at the core, none of our programming has changed.”

These challenges aren’t going away any time soon. The question is: Are you prepared, and how will you respond?