DEI In 2025: Should Companies Double Down or Pivot to New Priorities?
Ashana Crichton
Mar 10
2 min read
Updated: Mar 18
In the current landscape business leaders are wondering about the future of DEI. Arc Growth sees that the case for DEI very much still stands. As this article highlights: “As the workforce becomes increasingly global and multicultural, ignoring DEI risks alienating key stakeholders and forfeiting market opportunities”.
1. Lead with Courage. Leading with courage means committing to DEI even in the face of political and financial pressures. Leaders must articulate a clear vision for why these programs align with organizational values and long-term goals. For example, Netflix strengthened its inclusive storytelling strategy in 2024, investing heavily in content representing underrepresented voices, which in turn boosted global subscriptions.
2. Prioritize Measurable Outcomes. Focus on initiatives with tangible impacts, such as closing pay gaps, increasing representation in leadership, and tracking supplier diversity metrics. Microsoft tied a portion of executive compensation to diversity goals, ensuring accountability and transparency in its efforts.
3. Communicate with Nuance. Addressing DEI requires skillful communication to balance the benefits of maintaining programs with the rationale for any adjustments. Leaders must appeal to diverse audiences, from employees to investors, by emphasizing the value of DEI elements without alienating those influenced by political rhetoric. For example, Procter & Gamble reframed its messaging in 2024 to highlight both financial and social benefits of diversity, bridging ideological divides and maintaining credibility.
4. Adapt to Regulatory Environments. Companies must stay informed about changing legal landscapes and adapt their DEI strategies accordingly. Salesforce, for instance, redesigned its programs to comply with new state regulations while preserving their core objectives, ensuring both compliance and continuity.
5. Engage Stakeholders Proactively. Collaborate with employees, customers, and community partners to co-create DEI initiatives. Starbucks launched an innovative partnership with local organizations in 2024 to address hiring disparities, creating a model for community-driven success.
Arc Growth exists to work in partnership with those that want to create a better, more sustainable future. What’s good for employees, is good for business.
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