Moving Beyond DEI to Culture, Belonging, Engagement, and Inclusion
When Walmart recently announced its shift away from formal diversity, equity, and inclusion (DEI) initiatives, many interpreted this as just one more corporation — and a major one at that — abandoning its commitments to workplace equality. However, a closer examination of what Walmart reported reveals a more nuanced reality.
In their announcement, Walmart added: "We've been on a journey and know we aren't perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers, and to be a Walmart for everyone."
This statement reflects a broader trend: while companies may be distancing themselves from the term "DEI" and its more controversial aspects, many continue to pursue the core objectives of building diverse teams, implementing fair business and hiring practices, and fostering inclusive workplace cultures. In other words, the terminology has changed, but the efforts and the goals remain the same.
This continued commitment to workplace inclusion makes business sense. As reported in the Harvard Business Review in December 2024*, companies with more diverse and inclusive cultures demonstrate a competitive advantage over their peers.
In addition, a Wall Street Journal study found that the twenty most diverse companies in their survey achieved better operating results compared to their less diverse counterparts and typically saw stronger stock market performance. **
So, how can companies reset the narrative in 2025 and still hold on to their DEI commitments — without even using the term? Among the options are the following:
Allowing the Language of DEI to Evolve
A 2024 study, The State of Culture and Inclusion: 2024 Trends and a Look Ahead at 2025, was published by Paradigm, which helps organizations advance their diversity, equity, and inclusion initiatives.
The study found that several companies have stopped using the acronym "DEI" in the past few years. They now prefer more specific language describing their DEI-related activities and successes. "In 2025, it is expected that more leaders and companies will replace ‘DEI’ with terms like ‘culture, belonging, engagement, and inclusion.’"
An All-Inclusive Approach
Historically, according to the Paradigm report, many companies have failed to explain that diversity, equity, and inclusion efforts are not "zero-sum." Zero-sum refers to situations in which a gain for one side or group is a loss for another side or group. That is not the case with equity initiatives.
Instead, organizations should focus on making the workplace better for everyone. Wins are wins for everyone.
The researchers concluded that "by framing their goals broadly as creating a great culture for everyone and addressing any barriers to fairness or inclusion, they can convey that their efforts benefit all employees."
A New Narrative Requires a New Communications Strategy
In the past, DEI programs often struggled because organizations didn't clearly explain what DEI is, its importance, execution, and benefits.
To address this, organizations need much more precise internal and external communication strategies that describe their efforts, successes, and the positive impacts that result.
This is crucial as a company's narrative shapes its culture, drives engagement, and defines its brand; according to Alex Constantinople, partner and chief marketing officer at Greycroft, "Narratives unify teams, inspire action, and build trust."
Although the term “DEI” may be on its way out, the business case for diversity, equity, and inclusion has not changed. In fact, moving forward, it may become more vital than ever before.
-Steve
* “Continuing the Work of DEI, No Matter What Your Company Calls It,” The Harvard Business Review, December 13, 2024.
** “The Business Case for More Diversity, Wall Street Journal research analysts rank industries and companies for diversity and inclusion—and find a link to performance,” October 26, 2019