The Global Relevance of DEI: How Companies Are Missing Key Opportunities by Defunding Their Efforts

In recent months, we've seen a troubling trend of companies caving to anti-DEI rhetoric, cutting funding, and even abandoning their diversity, equity, and inclusion (DEI) efforts entirely. These organizations may not realize that they are not just bowing to external pressures—they are missing critical opportunities for growth, particularly in an increasingly global economy.

Often, DEI initiatives are mistakenly viewed as US-centric efforts focused solely on race and gender. While these are undoubtedly important components, this limited lens overlooks DEI's broader, global perspective and the significant impact it has on both employees and customers worldwide. DEI is an essential strategy for relevance, sustainability, and growth in today’s interconnected world.

The Employee Perspective: DEI Supports a Global Workforce

Global expansion requires more than just opening new offices in foreign countries. It demands that companies build inclusive workplaces that can attract, retain, and nurture talent from various backgrounds, nationalities, and cultures. The missed opportunity for companies defunding DEI efforts is that they will likely lose out on top talent who increasingly expect inclusive environments, no matter where they live.

1. Attracting International Talent: As businesses expand across borders, they need to recruit and retain top talent globally. Employees are more likely to join companies that value diversity and foster inclusive cultures. When companies defund DEI, they send a message to prospective international employees that they are not committed to providing equitable opportunities or creating psychologically safe environments. This can result in limited access to the skilled, diverse talent pools that companies need to thrive in new markets.
2. Enhancing Cross-Cultural Collaboration: Successful global teams rely on collaboration across different cultures, languages, and lived experiences. DEI efforts support cross-cultural competence, fostering an understanding of different communication styles, values, and business practices. Without this, companies risk alienating global employees, stifling innovation, and fostering an exclusionary work environment that hinders progress.
3. Psychological Safety Across Borders: Creating inclusive workplaces is not just a domestic issue. Psychological safety, the foundation of innovative and productive teams, is essential for global teams to thrive. When employees feel safe to share ideas, challenge the status quo, or voice concerns without fear of retaliation, they contribute to a more vibrant, dynamic workplace. However, if DEI efforts are defunded, these safe spaces can disappear, leading to disengagement and higher turnover rates, particularly in regions where employees may already feel marginalized due to cultural, racial, or ethnic differences.

The Customer Perspective: DEI is Key to Global Market Relevance

From a customer perspective, companies that defund DEI efforts risk losing their ability to resonate with a global audience. Consumers, especially in emerging markets, are increasingly socially conscious and prefer to engage with brands that reflect their values and identities.

1. Cultural Competency in New Markets: Expanding into new regions means more than simply offering products and services—it requires companies to deeply understand the cultural nuances, needs, and expectations of local consumers. Without a commitment to DEI, companies may miss the mark in connecting with diverse global audiences. For example, a marketing campaign that resonates in the U.S. may fall flat—or worse, offend—in other regions without the guidance of a diverse and culturally aware team.
2. Brand Loyalty and Social Impact: Consumers, especially younger generations, are more likely to support brands that are inclusive and socially responsible. According to a 2021 Nielsen report, 78% of consumers say that a company’s sustainability and social responsibility practices influence their purchasing decisions. DEI is a critical part of this equation. By defunding DEI efforts, companies risk alienating consumers who expect brands to champion diversity and inclusion in both word and action.
3. Innovating for a Diverse Customer Base: DEI drives innovation, particularly when it comes to meeting the needs of diverse customer bases. Products and services that are created by diverse teams tend to be more accessible, culturally relevant, and innovative. When companies defund DEI, they limit their ability to adapt and create solutions that resonate with global customers, leaving untapped potential on the table.

The Narrow Lens of DEI: Why a US-Centric Focus is Limiting

Many companies mistakenly frame DEI purely as race and gender programs based on U.S. sociopolitical dynamics. While these are important, the global landscape of DEI is far more complex and extends beyond this narrow focus. The reality is that every market, country, and region experiences diversity, equity, and inclusion in different ways. From language diversity and religious practices to economic status and disability inclusion, the global dimensions of DEI are vast.

Companies that only focus on race and gender in the U.S. miss the opportunity to create a truly inclusive strategy that accounts for the diversity of the global workforce and consumer base. For example, gender equity may be a critical issue in one region, while access to education and economic opportunity may be the driving DEI concern in another.

To be truly relevant in a global marketplace, companies must expand their understanding of DEI to include the unique challenges and opportunities faced by different communities worldwide. Defunding or downplaying DEI is not just a financial decision—it’s a decision to ignore the reality of the world we live in, a world that is becoming more interconnected and diverse every day.

A Missed Opportunity for Global Relevance

In the rush to distance themselves from DEI initiatives, companies are missing a significant opportunity to become more relevant and competitive in a global economy. Defunding DEI is short-sighted and ignores the essential role that diversity and inclusion play in fostering a vibrant, innovative, and sustainable business.

By embracing DEI as a global strategy—not just a U.S.-centric program—companies can unlock new levels of employee engagement, customer loyalty, and market expansion. In doing so, they ensure that they are not only on the right side of history but also poised for success in an increasingly diverse world.

Ultimately, DEI is about future-proofing your company for a global marketplace where diversity and inclusion are the keys to long-term success.

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Sacha Thompson is the founder of The Equity Equation, LLC, a boutique diversity coaching and inclusive culture consulting firm. With more than 20 years of experience within the education, non-profit, and tech industries, Sacha’s work involves removing barriers or providing support to achieve equity. She helps executives and leaders have meaningful dialogue and coaches them on the necessary, long-term changes that develop institutional cultures of inclusion. She was most recently featured in Newsweek, Business Insider, and MSNBC’s The Cross Connection.