In 2019, Liela Touré, working in public relations at a high-end e-commerce retailer, suggested forming an employee resource group for racial-minority staff. The company’s global social responsibility manager shared that similar proposals had repeatedly been dismissed by senior executives.
Everything changed in 2020 after the death of George Floyd. The global protests and feedback from Black employees led Touré’s company to establish diversity, equity, and inclusion (DEI) initiatives. Touré, being Black and Asian, was appointed as one of its chairs. Despite her efforts, by her departure a year later, the committee had accomplished little beyond a few meetings and hiring dedicated DEI specialists.
Touré’s story mirrors the broader fashion industry saga, where many companies exhibit only halting progress toward their 2020 commitments to diversify executive ranks, improve minority representation in marketing, and boost morale among minority employees. DEI departments now face skepticism about their effectiveness from within the workforce and executives questioning the impact on business.
Conservative activists are pushing to dismantle DEI programs. Several companies, including Kohl’s and GameStop, have either ended or renamed their DEI departments. Tractor Supply Co., serving a largely rural customer base, recently ceased all DEI activities and received backlash. While extreme, this highlights a broader industry-wide dilemma on DEI’s future.
Amber Cabral, a DEI strategist, notes, “We’re in the difficult part where companies must decide their approach amid rising backlash.” To adapt, top DEI programs are shifting the conversation and practices to avoid attracting conservative activist scrutiny. They focus less on numerical targets and more on management training, communication, and unbiased hiring practices.
Diversity experts argue that DEI should integrate into commercial strategies, emphasizing the bottom-line benefits like innovation and authentic consumer connections. Aniela Unguresan, founder of Edge Certified Foundation, states, “Investing in DEI drives a competitive advantage.”
While some fashion and beauty brands like Sephora, VF Corp., and Macy’s report tangible improvements, overall, DEI remains underfunded. Many efforts were financed through funds allocated for social impact, signaling that senior management viewed DEI as supplemental rather than essential.
Jamie Gill of the British Fashion Council and The Outsider Perspective suggests the recent Supreme Court ruling against affirmative action in colleges provides an excuse for companies to scale back DEI programs, despite limited direct legal impact on corporations.
The next DEI phase must prioritize direct business outcomes, aligning DEI goals with market demands and internal results. Cabral advises persevering despite discomfort, stating, “Continued effort will lead to progress.”
Ultimately, DEI experts propose it might follow the trajectory of chief digital officers, becoming embedded within corporate structures without specialized departments. However, this integration is far off, requiring sustained targeted policies to ensure genuine equity and inclusion.
