Despite public backlash, 80% of companies remain quietly committed to workplace inclusion, fairness and diverse representation.
Eight in 10 US companies say they remain committed to inclusion, fairness and diverse representation even as political and legal pressure forces organisations to rethink how they approach diversity, equity and inclusion (DEI), according to a new study from Catalyst and NYU Law’s Meltzer Center for Diversity, Inclusion and Belonging.
The report titled, A New Path to Inclusion: How to Overcome Legal and Cultural Constraints on Building Fair Workplaces, surveyed more than 2,000 employees and leaders across medium and large US organisations and found that while companies are adapting their inclusion strategies, widespread retreat from workplace inclusion efforts is not occurring.
KEY FINDINGS
Key findings from the report reveal that:
- 77% of US organisations have adapted their inclusion efforts in the last three years.
- 51% of federal contractors are scaling back inclusion efforts.
- 52% of non-federal contractors are increasing inclusion investments.
- 80% of organisations remain committed to inclusion, fairness and diverse representation.
- 55% of organisations publicly signalled a retreat from DEI, but only 34% actually decreased inclusion efforts.
- 69% of employees are more likely to buy from companies supporting inclusion efforts.
- 74% are more likely to apply for jobs at organisations that reaffirm inclusion commitments.
The findings arrive amid continued legal and political challenges facing corporate DEI programs following the 2023 Supreme Court ruling in Students for Fair Admissions v. Harvard and subsequent executive actions targeting workplace diversity initiatives.
WHY THIS MATTERS FOR WORKPLACE INCLUSION
The findings challenge the growing public narrative that corporate America is abandoning DEI altogether. Instead, the report suggests many organisations are evolving how they communicate and structure inclusion initiatives while maintaining core workplace fairness goals internally.
The findings also reflect a broader global shift away from performative DEI messaging toward measurable workplace outcomes. Past research show that while employees across the US, Europe and Asia continue to strongly support workplace inclusion, many workers now expect organisations to demonstrate tangible fairness and accountability rather than rely on symbolic initiatives alone, as reported.
PRESSURE ON FEREDERAL CONTRACTORS
One of the report’s clearest findings is the growing divide between federal contractors and other employers. More than half of federal contractors surveyed said they had reduced inclusion efforts due to regulatory pressure, while companies outside the federal contracting ecosystem were significantly more likely to expand their programmes.
“It’s been extremely challenging for organisations of all kinds to navigate the legal environment for DEI work over the past few years,” said David Glasgow, Executive Director of the Meltzer Center for Diversity, Inclusion and Belonging at NYU Law. “Yet we are seeing companies adopt nuanced approaches to inclusion based on their specific risk exposure.”
The research suggests political and regulatory scrutiny, especially for organisations tied to federal contracts, is driving many of the visible DEI rollbacks seen in recent years. Concerns around regulatory scrutiny and political backlash have intensified following federal DEI policy rollbacks earlier this year. Previous reports show that changes to federal workplace inclusion policies triggered significant anxiety among women and minority civil servants, particularly around career progression, workplace culture and job security.
MAJOR DISCONNECT BETWEEN PUBLIC MESSAGING AND WORKPLACE PRACTICES
The study also found a major disconnect between public messaging and actual workplace practices. While 55% of employees reported their company publicly signalled a retreat from DEI initiatives, only 34% said their employer had materially reduced inclusion work internally.
“What organisations say publicly about their inclusion initiatives doesn’t always tell the full story,” said Christina Thomas, Project Director at the Meltzer Center for Diversity, Inclusion and Belonging at NYU Law. “The internal work is harder to undo. It’s embedded in people, processes, and culture.”
Researchers say many companies are strategically changing language and external communications while continuing inclusion-focused practices behind the scenes. That disconnect between public messaging and internal workplace realities is becoming increasingly visible across corporate America. Fair Play Talks recently reported that a decline in Fortune 500 companies publicly communicating DEI commitments coincided with rising reports of stigma, job insecurity and lower productivity, especially among LGBTQ+ employees.
EMPLOYEES AND LEADERS REMAIN COMMITTED TO INCLUSION
Despite ongoing controversy surrounding DEI programmes, the study found broad support among both employees and executives. A large majority of respondents – 80% – said their organisations remain committed to diversity, fairness and inclusion. Meanwhile, 79% said they view companies with strong inclusion commitments positively.
“Despite a high-risk legal environment, our research shows that DEI is not dying – it is evolving,” said Joy Ohm, Vice President at Catalyst. “This is a story of adaptation, not a broad rollback.”
Researchers also found that organisations continuing to invest in inclusion efforts reported stronger innovation, operational efficiency and financial outcomes, particularly among non-federal contractors. Even so, some organisations continue scaling back programmes under political and legal pressure. Separate research covered by Fair Play Talks found that one in five companies eliminated DEI initiatives since 2024, raising concerns around employee morale, retention and long-term inclusion progress.
PRACTICAL RECOMMENDATIONS TO MAINTAIN FAIRNESS, REPRESENTATION AND TRUST
The report introduces a framework called “earned universalism” as a strategy for organisations navigating legal uncertainty while still advancing workplace inclusion goals.
Rather than abandoning inclusion programmes altogether, the approach encourages employers to focus on universal workplace benefits while still addressing the barriers faced by marginalised groups. Researchers argue this model can help organisations reduce legal risk while maintaining fairness, representation and employee trust. The report outlines several practical recommendations for employers:
1. Remove bias from workplace systems
Organisations should audit hiring, promotion, pay, and performance systems to identify structural barriers that disproportionately disadvantage certain groups. Researchers recommend redesigning workplace processes using consistent, identity-neutral standards that improve fairness for all employees.
2. Keep inclusion programmes broad but purposeful
The report advises companies to keep professional development, mentoring and leadership programmes open to all employees while ensuring they still address the experiences and barriers affecting underrepresented groups through content, education and support structures.
3. Reframe inclusion as a shared business responsibility
Researchers say organisations should position inclusion as a company-wide responsibility tied to innovation, collaboration, talent retention and business growth rather than framing it solely as a social or political issue.
4. Strengthen leadership accountability
The report suggests organisations are more likely to sustain inclusion progress when executives are measured against clear cultural and workforce goals. Transparent reporting, employee feedback and leadership engagement remain critical to long-term credibility.
5. Focus on long-term cultural change rather than public messaging
Researchers found that many organisations changing external DEI language are still maintaining internal inclusion efforts. The report recommends prioritising sustainable workplace systems and behaviours over performative public statements.
INCLUSIVE WORKPLACES DRIVE REPUTATION
“The legal and cultural attacks on inclusion are daunting,” said Emily Shaffer, Senior Director at Catalyst. “But they haven’t changed the fundamental math. Leaders and employees alike recognise that inclusive workplaces drive reputation, sales, and talent.”
Click here to read the full report, A New Path to Inclusion: How to Overcome Legal and Cultural Constraints on Building Fair Workplaces, to gain strategic guidance on evolving your inclusion efforts that is legal, effective and sustainable.
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