Quick Hit:

Many American companies that once backed away from controversial diversity, equity, and inclusion (DEI) programs are now quietly reintroducing them — not out of conviction, but to stop financial bleeding. A new survey of business leaders reveals that most reversals are not about ethics or justice, but rather a desperate bid to recover from PR disasters, internal division, and lost revenue. Despite public skepticism and a growing backlash against DEI, corporate America appears more concerned about optics and appeasement than principle.

Key Details:

• 1 in 5 companies that cut DEI programs are now quietly reinstating them to avoid public backlash and financial losses.

• Three in four business leaders admit DEI is driven by profit, not values, undermining claims of moral commitment.

• Political pressure was the top reason for initial rollbacks, followed by public scrutiny and budget concerns.

Diving Deeper:

A recent survey conducted by ResumeTemplates paints a sobering picture of corporate America's confused and contradictory relationship with DEI. After widespread backlash, 54% of companies eliminated or scaled back DEI policies in response to political pressure and rising public dissatisfaction with ideologically driven workplace mandates.

Yet now, a growing number are backtracking. One in five companies that previously rolled back DEI are reintroducing it — but doing so quietly, with subtle name changes like “inclusive culture” or “belonging,” in an effort to avoid public scrutiny. These quiet reinstatements are not accompanied by press releases or social media campaigns, signaling that corporations are more interested in damage control than transparency.

Julia Toothacre, Chief Career Strategist at ResumeTemplates, notes the irony: “Thirty-three percent said it was harder to hire diverse talent. What did they think was going to happen when they eliminated all of their DEI initiatives?” But this admission raises deeper questions about whether corporations ever genuinely believed in DEI, or simply adopted it to avoid the wrath of activist mobs and left-wing media.

Notably, 75% of survey respondents confessed that reinstating DEI is not about justice or corporate virtue — it's about protecting the bottom line. These companies suffered declines in employee morale (37%), internal conflict (33%), and difficulty hiring (33%) after cutting DEI programs. Some were even boycotted. But the real trigger appears to be fear of financial fallout and reputational harm — a clear indicator that DEI remains a business calculation, not a moral stance.

That cynical calculation undermines the left’s narrative that DEI is rooted in ethical leadership. If companies can pivot so easily — dismantling then reinstating programs purely based on whether they’re being boycotted or badmouthed online — what does that say about the authenticity of their so-called “values”?

There is also strong resistance brewing. Despite 1 in 3 business leaders acknowledging DEI is returning, 40% of companies surveyed said they are avoiding any new DEI initiatives altogether. That suggests the tide of public opinion is still shifting against institutionalized wokeness — and many companies, particularly smaller or less activist-leaning ones, aren’t willing to risk more backlash.

The decision to bring back DEI — under different names and behind closed doors — reveals corporate cowardice more than conviction. By trying to appease both sides, these companies end up serving neither. Instead of standing firm in their values or learning from past failures, they're resorting to quiet rebranding to minimize accountability.

The backlash against DEI didn’t happen in a vacuum. It was the inevitable response to divisive, often discriminatory programs that prioritized identity politics over merit and fostered resentment in the workplace. That some companies are now choosing to reinstate these programs in secret — after having publicly distanced themselves — only reinforces the critique that DEI was always more about virtue signaling than virtue.

As 47th President Donald Trump and other conservative leaders continue to push for the removal of ideological influence in American institutions, this latest report should serve as a warning. Corporate America still hasn’t learned its lesson — and if left unchecked, it may continue to pursue profit-driven “inclusion” policies at the expense of fairness, merit, and transparency.

"Office of Diversity Equity and Inclusion" by Tony Webster licensed under (CC BY-SA 2.0)