Companies that were previously leaders in this area have reduced investments or eliminated inclusion programs to avoid controversy in an environment where ” woke ” is perceived as a business risk. However, this short-term approach can have significant negative effects on employability, productivity and business sustainability.

📉The current context: pressure against DEI

The term ” woke ” originated in African-American communities and refers to awareness of social injustice and discrimination . However, in current discourse, it has been used by certain political sectors to discredit progressive initiatives, including diversity and inclusion programs.

Companies like Amazon, McDonald’s, Walmart, Disney, and Starbucks  have all adjusted their DEI strategies or cut budgets in response to criticism from conservative quarters and policies aligned with Trump’s agenda. There’s also been a broader movement against ESG ( environmental, social, and governance ) initiatives 🌱, which often include inclusion as a key pillar.

In some cases, the pressure comes from legislators and investor groups  seeking to eliminate diversity programs arguing that they create inequalities or affect financial performance. This was already happening before, as is the case of Fearless Fund , an investment fund 💰 focused on black women entrepreneurs, which faces lawsuits seeking to stop this type of initiatives.

And Jane Fonda  said it very clearly. said it very clearly at the Screen Actor Guilds Award in 2025:

🚀 Negative impact of reducing DEI efforts

While some companies are bowing to political pressure, data shows that diversity remains a key strategic asset.  Cutting back on DEI can have detrimental effects on several fronts:

• 👥Employability and talent attraction:  New generations of talent are looking for diverse and inclusive environments. A McKinsey study indicates that companies with greater diversity in leadership are 36% more likely to outperform their competitors in profitability .  [4]  

• 😃 Employee Satisfaction and Retention: While according to a Deloitte report, 83% of employees in inclusive companies report greater job satisfaction , which reduces turnover and improves productivity.

• 💡 Productivity and engagement:  Diverse teams perform better, have greater creativity, and more effective problem solving. Companies that reduce DEI may see a drop in employee morale and an increase in turnover.

• 📈Better financial results: A focus on human sustainability helps organizations reap the benefits of greater diversity, equity, and inclusion. Organizations with greater diversity are 2.4 times more likely to financially outperform their competitors.

• 🏆Reputation and consumer loyalty:  A setback in DEI can lead to boycotts or rejection by consumers committed to inclusion values, directly impacting sales and brand perception.

  In the words of Alicia Keys  at the 2025 Grammys:

Companies that have stood firm in the face of the backlash

Despite the pressure, some companies have resisted the backlash on DEI thanks to the support of their own shareholders and strategic leaders.

Apple:  This year, some investors attempted to pressure the company to scale back its diversity initiatives. However, the majority of shareholders voted against eliminating these efforts, reaffirming the company’s commitment to inclusion.

Costco:the company’s long-term  In a similar context, shareholders rejected a proposal to reduce DEI programs, arguing that diversity is critical to success. long-term of the company.

Microsoft:  While there have been some cuts, the company has strengthened its diversity programs  and continues to invest in initiatives that foster inclusion in technology.

Patagonia:  Maintains its commitment to equity , not only in terms of environmental sustainability, but also in social inclusion.

Ben & Jerry’s:social justice, despite political and commercial pressure against it.He continues to promote social justice  causes , despite political and commercial pressure against him.

How businesses can stay resilient