Businesses are backtracking on diversity, equity and inclusion (DEI) at quite a pace. In corporate America, where boardrooms have never been shy of making quick flip decisions, DEI has found itself in the firing line. Legal threats, political hostility and cost-cutting are the new excuses. Some of the biggest names in tech and finance – Meta, Google and a host of Wall Street businesses – have slashed their budgets for spending on these programmes while others have axed them entirely. The message is clear: inclusivity is getting pushed aside.
What happens in the US rarely stays in the US. Stateside trends have a habit of finding their way to Irish boardrooms sooner rather than later. But for businesses here, particularly in professional services and finance, the question is not whether they can follow suit but whether they can afford to.
The balancing act is a tricky one. On one side of the debate, there’s the very real sign that the world is changing on this issue. On the other, there’s the fact that DEI is not so much about virtue-signalling as about capturing talent, managing risk and staying competitive in a global market.
DEI is crucial to ensuring Ireland remains an attractive place to work
Talent is trumps
Attracting and retaining the best people has always been Ireland’s ace card. Our economic model is built on it. The country punches above its weight precisely because it has made itself a hub for skilled international workers. DEI isn’t some fluffy HR initiative but a crucial part of ensuring that Ireland remains an attractive place to work. And let’s be blunt: businesses that row back on inclusivity send a signal that they are closed shops. If the world’s best and brightest don’t feel welcome, they won’t come. It’s that simple.
The hard-nosed business case for DEI is as solid as ever. Research has shown that diverse teams make better decisions and drive stronger financial performance. Professional services firms, in particular, should take note. Many of their multinational clients are still demanding proof of real progress on diversity. If a firm turns its back on DEI now, it may find itself losing out on lucrative contracts to competitors who are still willing to play ball.
Then there’s the legal angle. In the US, it has become part of the ideological culture wars. But companies operating in Ireland cannot simply drop diversity commitments without considering the regulatory and reputational fallout. Walking away from DEI is not only a commercial risk but also a legal one.
Inclusivity must be made a measurable business outcome, not a slogan
The smart move
Still, firms need to be pragmatic. They don’t have the luxury of ignoring the shifting political winds. The smart play is to embed inclusivity into broader corporate strategies rather than relying on standalone DEI programmes, which can become easy targets when the budget axe swings. That means making diversity a leadership issue, using data to track progress, and ensuring that inclusivity isn’t just a slogan but a measurable business outcome.
The bottom line? Companies that take the short-term view and retreat from DEI may find themselves on the wrong side of history and on the wrong side of their balance sheets. The US may be running scared, but Ireland doesn’t have to follow. Businesses need to keep their eyes on the bigger picture: long-term resilience, competitiveness and a workforce that reflects the world as it is today, not as it was 50 years ago. That’s the challenge. The ones that get it right will be the ones that thrive.
