Navigating the equity, diversity and inclusion backlash

From companies slashing equity, diversity and inclusion (EDI) programs to the president of the world’s largest economy eliminating all EDI programs and roles at federal departments, EDI has never been more under threat. A webinar led by Dr. Wendy Cukier, founder of the Diversity Institute and academic research director of the Future Skills Centre (external link, opens in new window)  (FSC), addressed managing this backlash. Hosted with the Women's Executive Network (external link)  (WXN) on January 22, the event reached Zoom’s ceiling of nearly 1,000 participants.

• Canada’ has a unique context. We have strong legal frameworks which provide reassurance. Courts have also upheld significant settlements for employees facing discrimination, reinforcing EDI as both a legal and moral imperative.
• Canada’s Charter of Rights and Freedoms and Employment Equity Legislation create a foundation for EDI progress.
• Beyond moral arguments, the business case remains clear: Canada’s workforce and consumer demographics are rapidly evolving. As of 2023, racialized individuals made up nearly one-third of Canada’s workforce, and women—who influence 75-80% of purchasing decisions—play a major economic role. Immigrant populations are projected to nearly double by 2041, while disabilities and 2SLGBTQ+ representation are rising. Organizations that ignore these shifts do so at their peril.
• “Equity, diversity and inclusion will help you do a better job and be more successful,” Cukier said, citing research that shows how EDI broadens talent pools, fosters innovation, and enhances employee satisfaction. It also mitigates legal, financial, and reputational risks associated with noncompliance.
• Today’s workforce and consumers expect inclusive practices, not just as a matter of principle but as a necessity for future-proofing organizations.
• The best diversity and inclusion strategy is a corporate strategy. EDI must be integrated across all areas of corporate strategy, not treated as a standalone initiative.
• EDI’s impact extends beyond hiring; it influences product design and market competitiveness.
• On managing backlash, Cukie advised that organizational backlash often arises from performative policies that fail to deliver structural change, while creating perceptions of unfair advantage.
• Lack of clear performance metrics or accountability also fuels skepticism. Many EDI practitioners focus on engaging allies rather than addressing skeptics, missing opportunities to bridge divides and escalating opposition.
• Many corporate leaders are standing firm. Apple’s board rejected a proposal to abolish its EDI programs, calling them integral to its strategy. Costco reaffirmed EDI’s importance, rejecting conservative calls for a financial risk analysis. Walmart’s stakeholders have raised concerns over its policy changes.
• Companies must stay committed to equitable workplaces to mitigate risks and fulfill their obligations.
• Tools like the Diversity Assessment Tool, a free application that helps organizations improve their EDI strategies, can track progress and demonstrate impact.
• Embedding EDI into corporate frameworks ensures progress.Research from DI shows that legislation, albeit slow, and voluntary codes like the BlackNorth Initiative, 30%+ Club and 50 – 30 Challenge, and stakeholder pressure shape behavior. Aligning EDI with corporate values, customer commitments, and supplier policies strengthens its impact.