Once the cornerstone of corporate policies, diversity, equity, and inclusion (DEI) initiatives are now under scrutiny. Recent decisions by global giants such as Accenture and Google to scale back DEI-focused programmes and hiring targets have ignited a larger debate: is DEI a long-term business imperative, or is it succumbing to legal and political pressures?
These developments underscore a shift in corporate priorities. While legal challenges and socio-political climates play a role, the fundamental principles of inclusivity and equity remain essential for fostering sustainable workplace cultures. The question is, how can organisations maintain meaningful DEI commitments while adapting to changing circumstances?
The evolving legal landscape
The regulatory environment for DEI is increasingly complex. Some jurisdictions are tightening anti-discrimination laws, demanding greater accountability in corporate hiring practices. Others are scrutinising DEI initiatives under claims of reverse discrimination, forcing organisations to rethink their approaches.
“Legal frameworks are shifting, and organisations need to ensure compliance while maintaining an inclusive workforce.”
Sriharsha Achar, a senior HR leader
“Legal frameworks are shifting, and organisations need to ensure compliance while maintaining an inclusive workforce,” says Sriharsha Achar, a senior HR leader. “The challenge is integrating DEI into business strategies rather than treating it as a standalone initiative.” Achar believes that while short-term setbacks may occur, workplace diversity remains a long-term priority, particularly in developing economies like India, where DEI efforts are shaped by regional labour laws and socio-political dynamics.
Multinational corporations face the added challenge of balancing varying legal landscapes while upholding consistent corporate values. Affirmative action policies, for instance, provide support for underrepresented groups in some regions, but private organisations often determine their own levels of commitment.
Beyond compliance: The business case for DEI
The benefits of DEI extend far beyond regulatory obligations. Numerous studies demonstrate that diverse teams drive innovation, enhance decision-making, and improve financial performance. More importantly, DEI is critical for attracting and retaining talent. Organisations that deprioritise DEI risk alienating top performers, damaging their employer brand, and losing customer trust.
“Promotions and opportunities were occasionally granted based on diversity quotas rather than qualifications, creating resentment and, in some cases, hindering performance.”
Tanaya Mishra, CHRO, InGlobal Solutions
“Organisations that thrive are those that see DEI as an enduring investment, not a checkbox exercise,” Achar asserts. While companies such as Accenture and Google may be re-evaluating their strategies, this doesn’t necessarily signal abandonment. Instead, businesses are shifting toward sustainable, measurable, and legally compliant diversity initiatives.
Moving from performative actions to measurable impact
“The future of DEI will likely move away from performative actions and toward sustainable, measurable outcomes,” says Praveen Purohit, deputy CHRO, Vedanta Resources. Historically, some organisations have implemented DEI initiatives to meet external expectations rather than foster genuine inclusivity. However, the growing demand for accountability means companies must prioritise structural changes over symbolic gestures.
“The future of DEI will likely move away from performative actions and toward sustainable, measurable outcomes.”
Praveen Purohit, deputy CHRO, Vedanta Resources
One emerging framework is FAIR—fairness, access, inclusion, and representation. Unlike traditional DEI models, FAIR focuses on equitable success metrics, ensuring diversity translates into meaningful career progression rather than superficial hiring quotas. This approach aligns with a broader corporate shift toward inclusive sustainability, embedding DEI into leadership pathways, compensation structures, and organisational values.
Balancing meritocracy and diversity
A recurring challenge in DEI efforts is reconciling meritocracy with diversity. While DEI initiatives aim to create equal opportunities, critics argue they sometimes prioritise quotas over qualifications. “Organisations pushed DEI initiatives aggressively, sometimes at the expense of meritocracy,” notes Tanaya Mishra, CHRO, InGlobal Solutions. “Promotions and opportunities were occasionally granted based on diversity quotas rather than qualifications, creating resentment and, in some cases, hindering performance.”
Mishra emphasises that meritocracy must remain the foundation, complemented by diversity. Instead of enforcing fixed diversity quotas, organisations should invest in mentorship, leadership training, and sponsorship programmes that empower underrepresented employees to succeed on merit.
The role of technology in DEI
As workplaces become more tech-driven, DEI strategies must adapt. Artificial intelligence (AI) and automation are reshaping hiring, performance evaluations, and workplace interactions. AI-powered applicant tracking systems help reduce unconscious bias but also risk perpetuating inequalities if not carefully monitored.
“New roles such as ‘AI ethics specialists’ are emerging to oversee ethical AI practices, ensuring technological advancements support rather than hinder DEI goals,” Mishra explains. Companies must balance leveraging AI for efficiency with maintaining human oversight to ensure fairness.
Remote and hybrid work environments also present new DEI challenges and opportunities. While flexible work arrangements benefit employees with disabilities, caregivers, and working parents, they can exacerbate digital exclusion for those lacking access to high-speed internet or proper work setups. Organisations must address these disparities through digital inclusion initiatives, such as remote work stipends and training programmes.
A global perspective
DEI strategies will vary across regions. In India, for instance, DEI efforts are gaining momentum, with increasing participation of women and underrepresented groups in industries. “In India, the focus remains on meritocracy first, but DEI is still important,” Purohit explains. “The challenge is balancing inclusivity with business needs without compromising performance.”
In regions facing political pushback against DEI, organisations must adapt while staying true to their diversity principles. “We are in a period of recalibration, but DEI is here to stay,” Achar concludes. “It will evolve but not disappear. Companies that integrate DEI into their long-term strategies will have a competitive edge.”
Charting a sustainable future
Despite recent pullbacks in DEI initiatives by some corporations, the momentum for workplace diversity and inclusion remains strong. While political and legal headwinds may slow progress, the long-term success of DEI depends on how well organisations embed inclusivity into their core business strategies.
By moving away from quota-based approaches and focusing on sustainable inclusion, companies can prioritise meritocracy while ensuring equitable access to opportunities. A forward-thinking DEI strategy—one that balances fairness, access, inclusion, and representation—will not only future-proof organisations but also foster a workplace culture where everyone can thrive.
