Originally found at Forbes.
When managed effectively, diversity enhances decision-making and innovation, leading to better performance. It also strengthens recruitment efforts, as three in four job seekers consider diversity important when evaluating companies and job offers. Moreover, DEI fosters engagement and retention. According to a 2019 Catalyst study, 35% of employees’ emotional investment in their work and 20% of their intention to stay at their organization are linked to feelings of inclusion.
Despite these benefits, DEI is now facing unprecedented challenges. On January 20, 2025, the U.S. administration issued an executive order restructuring DEI programs across the federal government, impacting roles such as chief diversity officer as well as equity-related grants and contracts. This reflects a broader shift in the DEI debate, with some sectors questioning its implementation and effectiveness. The consequences have been immediate: universities are halting DEI-related research projects, and many institutions are scaling back initiatives out of fear of losing federal funding. Beyond economic concerns, society at large is questioning the legitimacy and importance of DEI in organizations.
Leadership at the highest levels of government plays a pivotal role in shaping societal values. A recent study published at the Academy of Management Journal has shown that political climate influences the social integration and well-being of immigrant workers. In regions with high far-right political support, immigrants face increasing levels of social undermining by coworkers, which affects their job satisfaction and likely lowers their chances of being hired. This is because broader societal attitudes are influenced, among other factors, by political leadership, which in turn affects how individuals and organizations treat members of vulnerable social groups. When political leaders question the legitimacy of DEI, it emboldens others to do the same, leading to a normalization of discrimination.
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