Special Report: Strategic Messaging in a High-Stakes Landscape, Part 2: Diversity, Equity, and Inclusion (DEI)
AUTHORS: CARLI SCHOENLEBER, PAULYNN CUE, AND MARY REAMES
RESEARCHERS AND REVIEWERS: ALEX WILLIAMS, GABE JOHN, CHIKA ACHOLONU, AND SHAUNA ARCHERMAY 19, 2025Summary
As scrutiny around corporate DEI intensifies, companies are reevaluating how they communicate inclusion efforts amid shifting legal, political, and cultural pressures. While some firms are either backing away from DEI or reaffirming support of DEI programs, others are quietly rebranding their commitments using more strategic language. This report explores how organizations can navigate opposition to DEI using strategic messaging to align communications with legal requirements, stakeholder expectations, and long-term business goals. This report is Part 2 of Verdani’s strategic messaging series, developed in tandem with Part 1 on ESG, sustainability, and climate.
Highlights
Corporate DEI is under legal and political fire: A wave of executive orders and lawsuits has increased scrutiny on race- and gender-based language in DEI programs.
Diverse responses from companies: Some companies, like Costco, are publicly reaffirming DEI, while others, including Walmart, Target, and McDonald’s, are scaling back or rebranding their programs in response to perceived legal exposure.
Consumer and talent expectations remain high: Pullbacks from DEI have triggered public backlash and employee disengagement, especially among Millennials and Gen Z.
5-Part DEI strategic messaging recommendations for CRE: This report introduces a five-part framework to help real estate companies refine DEI messaging. It provides guidance on understanding positioning through a unique set of postures, which can help align messaging with risk tolerance, values, and stakeholder expectations — while maintaining compliance and credibility.
Introduction
Over the past three decades, DEI has evolved from a compliance-driven initiative aimed at adhering to the Civil Rights Act of 1964 — which prohibits employment discrimination based on race, color, religion, sex, or national origin — to a central component of corporate strategy, particularly within the "social" pillar of environmental, social, and governance (ESG) frameworks. Over time, the term DEI has expanded to encompass a broad range of voluntary practices, including inclusive hiring, employee resource groups, supplier diversity, leadership development, and community investment. While compliance with anti-discrimination laws remains crucial, DEI initiatives have evolved to proactively foster diverse and inclusive workplaces beyond legal obligations.
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