By DONEISHA POSEY
The landscape of diversity, equity and inclusion initiatives has shifted dramatically in early 2025.
With recent executive orders from both federal and state levels targeting DEI programs, business leaders are seeking clarity on how to maintain their commitment to workplace equity while ensuring legal compliance.
As someone who has spent her entire career as a civil rights attorney guiding organizations through DEI transformations, I’ve observed that the most resilient companies aren’t retreating from their equity commitments — they’re evolving their approach. The recent executive orders banning DEI programs in federal and Indiana state agencies and the subsequent “chilling effect” on private sector initiatives demand a thoughtful response from business leaders.
While some major corporations, such as Target, McDonald’s and Meta, have scaled back their DEI programs, others, like Costco and Apple, are strategically refining their initiatives to align with business goals while remaining legally sound. The key difference lies in how these programs are structured and implemented.
Here’s what forward-thinking organizations should consider:
First, ground your initiatives in data-driven decision-making.
Regular assessments of demographic data, pay equity, retention rates and promotion patterns provide concrete evidence of areas needing attention. A data-driven approach strengthens program effectiveness and provides a defensible framework in case of legal scrutiny.
Second, focus on creating comprehensive development programs that benefit all employees while supporting underrepresented groups.
Instead of narrowly targeted race-conscious programs, forward-thinking companies are adopting comprehensive leadership development and mentorship programs that benefit all employees. Providing structured opportunities for career growth, skill-building and sponsorship ensures that historically underrepresented groups still receive meaningful support — without creating policies vulnerable to legal challenges.
Third, conducting internal DEI audits — reviewing policies, hiring practices, training materials and promotion trends — helps organizations stay compliant while maintaining effective equity initiatives.
Regularly reviewing DEI programs will ensure that they meet legal standards while aligning with organizational goals. An audit should assess risk areas, such as race-based hiring practices or scholarship programs, and recommend adjustments such as revising policies to shift from race- or gender-specific criteria to more legally defensible approaches, such as those based on economic disadvantage or other non-racial criteria.
Remember that while targeted programs may face challenges, creating an inclusive environment remains vital — and legal — for private sector organizations. The Supreme Court’s ruling on affirmative action, while raising questions about specific measures like quotas, doesn’t make general DEI policies illegal in private companies.
In this complex landscape, successful organizations are:
- Integrating equity principles throughout their operations rather than treating them as separate initiatives.
- Establishing clear, measurable objectives with regular progress reporting.
- Ensuring visible support from leadership while positioning inclusion as fundamental to business strategy.
- Maintaining community connections and building diverse talent pipelines through educational partnerships.
- Documenting how inclusive practices drive innovation and engagement.
Looking forward, adaptation is key. Organizations that treat equity as integral to their business strategy rather than a separate initiative are better positioned to navigate these changes while maintaining their commitment to inclusive workplaces.
The path forward requires balancing compliance with commitment to equity. While some companies retreat under pressure, others find innovative ways to advance inclusion within new legal parameters. Success lies not in abandoning DEI efforts but in evolving our approach to create sustainable, legally sound programs that benefit all employees while supporting historically underserved groups.
Remember, building an inclusive workplace isn’t just about compliance — it’s about creating an environment where all employees can contribute their best work. That fundamental goal remains unchanged, even as our methods adapt to new realities.
Doneisha Posey is the president and CEO of Impacto Strategies.
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