DEI Backlash: Why Leaders Must Stand Firm

In the face of backlash against Diversity, Equity, and Inclusion (DEI) initiatives in corporate settings around the globe, particularly in the United States, it's critical for Australian leaders to hold their ground and uphold their values. DEI is not just a passing corporate trend—it's about ensuring a fair, inclusive, and productive workplace. For leaders in Australia, where social justice and fair treatment are deeply embedded in our cultural narrative, we must ask ourselves: do we let external pressures derail our efforts, or do we reaffirm our commitment to inclusion?

#### DEI is Smart Business

Firstly, let’s dismantle the argument that DEI is somehow controversial. Whether you're running a construction company in Brisbane or managing a corporate office in Sydney, the business case for diversity and inclusion is rock solid.

1. Expanding your talent pool: It is widely accepted that tapping into a diverse talent pool helps secure the best talent. Recruiting from historically marginalised groups—whether that be Indigenous Australians, women, LGBTQ+ individuals, or people with disabilities—broadens your talent pipeline. Research from the Australian Human Rights Commission shows that diverse teams are more innovative, better at problem-solving, and ultimately, more productive. Failing to recruit inclusively means missing out on talent that could drive your company forward. Wouldn’t it be bad business to do otherwise?

2. Preventing discrimination: Protecting employees from discrimination isn’t just the right thing to do; it’s a legal requirement. Australian law, under the Fair Work Act and Racial Discrimination Act, mandates that all workers are treated fairly and without prejudice. Companies that don't take discrimination seriously risk facing costly lawsuits, reputation damage, and a demotivated workforce. Is it really worth the risk to not address discrimination head-on?

3. Creating safe and inclusive environments: Everyone deserves to feel safe and respected at work. If workers don't feel included, their motivation drops, absenteeism increases, and turnover rates soar. On the flip side, a Deloitte Australia report found that inclusive workplaces see a 30% improvement in team performance and a 10-fold increase in innovation. Providing an inclusive environment isn’t controversial—it’s essential for a thriving business. It’s bad business not to prioritise this.

#### Navigating the Backlash: What It Looks Like and How to Respond

Despite these undeniable benefits, DEI is facing backlash, particularly in the US. Extremist lobbying and social media campaigns attempt to paint DEI efforts as "divisive" or "unnecessary." Australian companies may not yet face this on the same scale, but the global influence of this sentiment is growing. So, how do we respond?

##### 1. Recognise the Fear Campaign

The goal of these extremist efforts is to create an environment of fear. The narrative pushed is that DEI initiatives are "too political" or that they favour certain groups over others. This rhetoric is designed to divide and distract. In Australia, where we generally have a strong sense of fairness and social justice, it’s crucial that we recognise this as a fear campaign with no real basis in fact.

Australian leaders can take this moment to reassure their teams, customers, and stakeholders. Leaders must remind their workforce that inclusion isn’t about taking away opportunities from one group to give them to another—it’s about expanding opportunities for everyone.

##### 2. Lead with Data

A well-documented business case exists for DEI, and data is your ally. In Australia, we have seen clear examples of how DEI initiatives improve businesses. For instance, Woolworths Group, one of the largest retailers in the country, has placed a strong emphasis on gender diversity and inclusive leadership, resulting in better employee engagement and stronger financial performance.

If your company is facing pushback on DEI, leaders can lean into the numbers. If your DEI initiatives have resulted in improved employee satisfaction, higher retention rates, or increased innovation, highlight that data. For example, an internal review of your workforce might show that employees from diverse backgrounds are staying longer or that your company is attracting top talent because of its inclusive policies. Numbers speak volumes, and they can help shift any lingering doubts within your company or the broader community.

##### 3. Understand Your Workforce and Consumers

Australia has a multicultural population, with almost half of all Australians having a parent born overseas. Our workforce reflects this diversity, and so do our consumers. Australian businesses need to understand that representing and catering to this diversity isn’t just ethical—it’s a smart business move.

Take Qantas, for example. The airline giant is an active supporter of LGBTQ+ inclusion and reconciliation with Indigenous Australians. Despite any potential backlash, Qantas understands that its diverse consumer base values these commitments. Australian consumers expect businesses to stand for something beyond profit.

Australian leaders must be in touch with the values of both their workforce and consumers. Understanding that inclusivity is part of what makes your organisation competitive, relatable, and successful is key to fending off backlash.

#### The Role of Leadership: Say "Enough"

At the heart of this issue is leadership. When a company faces pressure to roll back DEI efforts, whether from external sources or internal hesitation, it falls to leaders to stand up and say, "enough." There are three critical actions leaders must take:

1. Reaffirm your values: Don’t shy away from the values listed on your corporate website. If inclusivity is part of your core mission, don’t let fear push you to retreat. Publicly reaffirm your commitment to DEI, both internally and externally. This clarity from the top provides reassurance to your employees and consumers that your company stands firm in its values.

2. Support with internal data: When leaders are asked to justify DEI efforts, they should be prepared to present hard evidence. Point to specific examples where DEI has made a measurable difference. If your turnover has decreased, if you've attracted top talent, or if employee engagement has gone up—show it.

3. Stay true to your workforce: At the end of the day, your employees are your greatest asset. If your workers feel valued, respected, and included, they will work harder and stay longer. You’ll foster a more innovative, dedicated, and loyal team. Leaders must stay true to what they know works—creating an inclusive workplace that benefits everyone.

#### Conclusion: Australia, We Can’t Afford to Retreat from DEI

While the DEI backlash in America may seem far removed from Australian shores, we cannot ignore its creeping influence. Australian leaders must recognise this backlash for what it is—an extremist, fear-based effort to divide and distract.

In Australia, we have a strong sense of fairness and a track record of championing inclusivity. Whether you're leading a team in construction, retail, or finance, now is the time to stand firm in your DEI commitments. By leaning into the data, understanding your workforce, and standing by your values, you’ll not only fend off the backlash but create a stronger, more competitive business in the process.

Diversity, equity, and inclusion are not just ethical imperatives—they are smart business. As leaders, we must say "enough" to the backlash and continue building workplaces where everyone has the opportunity to succeed.

References:

-          Australian Human Rights Commission, Workplace Discrimination and Diversity in Australia, 2020.

-          Deloitte Australia, The Diversity and Inclusion Revolution: Eight Powerful Truths, 2018.

-          Fair Work Ombudsman, Fair Work Act 2009.