DEI Programs: More Than Ethics, They’re Smart Business Strategy
By the Family Friendly NM Board of Directors
Recent actions by the White House to remove Diversity, Equity, and Inclusion (DEI) programs and staff from the federal government have sent shockwaves through the public and private sectors. This rollback of DEI efforts has sparked conversations about whether these programs are simply a matter of ethics or a critical component of effective governance and business strategy. The truth is clear: DEI initiatives are not just good ethics—they are essential to driving innovation, retaining top talent, and ensuring long-term success (which is exactly why Family Friendly New Mexico added an entire workplace policy category on DEI to our framework).
This decision overlooks decades of evidence demonstrating how DEI programs improve outcomes, not just for employees and communities but for organizations themselves. As we face an increasingly interconnected and diverse world, abandoning these programs is not only a step backward ethically—it’s bad strategy.
The Business Case for DEI
- Enhanced Innovation and Creativity
Diverse teams bring a wide range of perspectives, experiences, and ideas to the table. This diversity of thought fosters innovation by encouraging out-of-the-box thinking and creative problem-solving. A study by Boston Consulting Group (BCG) found that companies with above-average diversity in their management teams generated 19% higher innovation revenue than their less diverse counterparts. By sidelining DEI, organizations risk stifling the innovation needed to stay competitive in rapidly changing markets.
- Improved Employee Engagement and Retention
Employees who feel valued and included are more likely to be engaged and loyal to their workplace. Gallup research shows that highly engaged employees lead to 23% higher profitability and 18% higher productivity. Removing DEI programs sends a message that inclusion and equity are not priorities, potentially alienating employees and increasing turnover. This is a costly mistake for any organization, public or private.
- Better Decision-Making
Diverse teams make better decisions — and they make them faster. A study by Cloverpop revealed that inclusive teams make decisions 60% faster and with 87% better results compared to individual decision-makers. Removing DEI efforts weakens an organization’s ability to foster these high-performing, inclusive teams, resulting in slower, less effective decision-making processes.
- Access to a Broader Market
Organizations with inclusive cultures are better positioned to connect with diverse populations. McKinsey & Company’s 2020 report, Diversity Wins: How Inclusion Matters, found that companies in the top quartile for ethnic and cultural diversity on executive teams outperformed their peers by 36% in profitability. Removing DEI efforts risks eroding trust with diverse communities, missing out on opportunities to better serve these groups and understand their needs.
- Enhanced Reputation and Brand Loyalty
A strong commitment to DEI builds organizational reputations and strengthens consumer trust. According to Edelman’s 2022 Trust Barometer, 60% of consumers consider a brand’s commitment to diversity when making purchasing decisions. Government institutions and businesses alike benefit from the credibility and loyalty that come from demonstrating values of inclusion and equity. Rolling back DEI programs jeopardizes this trust.
A Call to Action in Light of Recent Changes
To businesses, governments, and organizations across the state: do not let these setbacks deter you. Instead, take bold steps to preserve and enhance your DEI initiatives. Commit to actionable strategies, such as:
- Setting Measurable Goals: Define and track progress on DEI metrics and hold leaders accountable.
- Training Leadership: Equip leaders to manage diverse teams and foster inclusivity in decision-making.
- Encouraging Employee Resource Groups (ERGs): Create spaces for underrepresented voices to connect and thrive.
- Recruiting Equitably: Build diverse talent pipelines and ensure equitable opportunities for advancement.
- Soliciting Feedback: Listen to employees and communities to identify areas for growth and trust-building.
Building a Future Where DEI Thrives
Removing DEI programs and staff at the federal level may hinder progress, but it cannot erase the undeniable value of inclusivity. Businesses and organizations have an opportunity—and an obligation—to fill this void. By continuing to invest in DEI, you can not only drive innovation and growth but also send a powerful message that diversity, equity, and inclusion are essential to the success of our society as a whole.
Now is not the time to scale back. Now is the time to step up. Together, we can ensure that DEI remains at the forefront of building workplaces, governments, and communities that thrive in an increasingly diverse world.
Let’s build a future where DEI isn’t just a program — it’s a way of doing business. Join the movement to build family friendly workplaces, which include DEI programs.
Sources:
- Boston Consulting Group (2018). How Diverse Leadership Teams Boost Innovation.
- Gallup (2020). The Relationship Between Engagement at Work and Organizational Outcomes.
- Cloverpop (2017). Hacking Diversity with Inclusive Decision-Making.
- McKinsey & Company (2020). Diversity Wins: How Inclusion Matters.
- Edelman (2022). Edelman Trust Barometer Special Report: The Belief-Driven Buyer.