The Fine Balance Associated With DEI

A recent report by the Conference Board, DEI in Transition: 2025 Corporate Diversity Disclosure Trends, confirms a marked retreat in what companies publicly disclose about diversity. Drawing on S&P 100 companies, S&P 500 companies, and Russell 3000 disclosures, the research shows sharp cuts in transparency. From 2024 to 2025, the share of companies reporting data on women in management fell by 16 percentage points, while disclosures on board gender and racial diversity dropped by 28 percent and 31 percent, respectively.

Among S&P 500 companies, the use of the "DEI" acronym (diversity, equity, and inclusion) dropped by 68 percent from 2024 to this year, while 21 percent of companies reduced or removed DEI-related metrics and targets. However, according to the report, 79 percent of S&P 500 firms disclosed board committee oversight of DEI, up from 72 percent in 2024. Similarly, that figure jumped from 48 percent to 87 percent for Russell 3000 companies. The Conference Board's report suggests that those figures indicate that companies remain cautious about external DEI messaging while integrating DEI to make their policies more legally defensible.

The report's findings illustrate the scale: Among S&P 500 firms, the disclosure of women on boards declined from 91 percent to 60 percent, and reporting on women in management decreased from 71 percent to 55 percent year over year.

The Conference Board's Beyond Backlash: The Continued Benefits of DEI at Work report found that most US leaders believe DEI initiatives improve belonging, boost engagement, and contribute to improved collaboration and retention.

Other recent signals reinforce the stakes for employers. The 2025 Edelman Trust Barometer reveals rising fears of discrimination. Meanwhile, Businessolver's The $180 Billion Case for Empathy report shows double-digit declines in belonging and connectedness at work. And for the next-gen workforce, purpose and inclusive culture remain pivotal, with the majority of Gen Z and millennials saying purpose is key to job satisfaction, according to Deloitte's 2025 Gen Z and Millennial Survey.

DEI in Transition shows that organizations now must walk a tightrope to reframe but not abandon DEI practices. The report states that "Going forward, corporate leaders must balance legal defensibility and stakeholder expectations while ensuring human capital governance remains aligned with long-term business priorities."