The current backlash against DEI echoes earlier resistance to accessibility.
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While the political blowback against diversity, equity, and inclusion (DEI) is real, companies should anticipate the demographic changes underway in this country to maintain competitiveness and grow their customer base.
In 1976, Minnesota led the nation with the first accessibility building code, a landmark moment driven by the determination of the disability community. At the time, I served on the advisory committee for accessibility in state building codes. The response to the new code was swift and hostile: businesses decried the costs of curb cuts, ramps, and accessible bathrooms.
Critics claimed, “No one will use these facilities,” and local budgets couldn’t bear the burden. What those businesses were really saying was, “You’re not welcome here.”
They excluded not just customers but innovators, thinkers, and contributors who could have transformed their industries. Today, universal design benefits everyone, from travelers rolling their luggage through airports to individuals using wheelchairs. The accessibility mats I see during winter strolls along Miami Beach epitomize inclusion—unnoticed by most but life-changing for those who rely on them.
This evolution took decades, yet similar battles for DEI rage on in new forms, especially in the financial system. Many companies that once embraced DEI are now backtracking in fear of political reprisal.
The Role of DEI in Business and Investment
The current backlash against DEI echoes earlier resistance to accessibility. Some companies resist making changes, fearing costs or controversy. Others adopt DEI as a token gesture, missing its deeper value. DEI is not just a moral imperative; it is smart business.
Diversity is a central tenet of investing. Investment managers strive to diversify risk across sectors and companies. Why should employee and customer diversity be different? Diversity fosters innovation by challenging groupthink and embracing new perspectives. It builds trust with increasingly diverse customer bases.
By 2045, the U.S. population will be majority nonwhite—a demographic shift businesses cannot afford to ignore. Forward-thinking companies are already integrating DEI into their operations to better reflect the world they serve.
Equity, meanwhile, is a matter of fairness. Historical practices like redlining, the exclusion of agricultural workers from Social Security, and unequal implementation of the GI Bill have left lasting scars on minority communities. Programs aimed at addressing these inequities are now under attack, with lawsuits targeting organizations working to redress systemic disinvestment.
These efforts to undermine equity should concern investors as much as policymakers. Companies backing away from DEI due to political polarization risk alienating stakeholders and sacrificing long-term returns. DEI isn’t a trend—it’s a necessity for resilience and growth in a rapidly evolving marketplace.
A Call to Action
That blue mat on the beach didn’t appear by chance. It’s there because decades ago people demanded equitable treatment. Today, other marginalized groups—Black, Latino, Indigenous, LGBTQ, women, and others—are raising their voices to demand the same.
As investors, you wield significant influence. It’s not enough to look at profit margins; you must interrogate the policies and norms of the companies you support. Ask whether they are fostering inclusion, preparing for the future, or clinging to exclusionary practices.
Investing in DEI isn’t just good ethics—it’s good business. By aligning your investments with inclusive values, you contribute to building systems that welcome and empower everyone. The future demands nothing less.
