Avoiding conflicts of interest at work
Ethics and compliance
In today’s business environment, leaders must determine whether to adjust their strategies in response to external political influences or prioritize established business objectives. As discussions around diversity, equity and inclusion (DEI) continue, some companies are reducing their initiatives due to concerns about potential criticism rather than based on measured business outcomes.
However, the real risk isn’t in conducting non-discriminatory DEI training. It’s in failing to equip leaders with the skills to manage a dynamic workforce, mitigate liability and drive performance.
The Facts: Trump’s Executive Order and What It Actually Means
Misconceptions about President Trump’s January 20, 2025, Executive Order on DEI have fueled uncertainty in the private sector. Here’s the reality:
- No federal law prohibits private-sector DEI programs that comply with anti-discrimination law.
- The Executive Order does not alter existing workplace discrimination or harassment laws.
- Employers are still legally obligated to provide workplaces free from discrimination.
Despite these facts, some companies are scaling back DEI initiatives, due to concerns about political discourse. But many leading organizations, including Costco, Microsoft, Amazon, Apple, Ben & Jerry’s, Johnson & Johnson, TJ Max and ELF Beauty, to name a few — continue to invest in inclusivity, not as a political statement, but because it drives business performance. In fact, a January survey by Resume.org of 1,000 companies with DEI programs in 2024, reveals that seven in eight companies plan to maintain or expand DEI budgets in 2025.
The Competitive Edge: Inclusion is a Business Strategy
Companies that succeed in times of uncertainty share one key trait: they build resilient, adaptable teams. And the data is undeniable — workplace inclusion is a critical driver of resilience, innovation, and financial performance. Inclusive organizations are:
- 6x more likely to be innovative and agile (Deloitte)
- 75% faster at bringing new products to market (Forbes)
- 35% higher team performance (McKinsey & Co)
- 87% more likely to make better business decisions (Korn Ferry)
According to McKinsey, two factors are essential in helping organizations successfully navigate disruption: trust and inclusion. Employees who trust their managers and colleagues are 42 times more likely to exhibit resilience in the face of change.
The bottom line? Companies with inclusive practices often achieve stronger business performance.
The Talent Factor: Workplace inclusion drives retention
In a labor market defined by talent shortages and evolving employee expectations, companies cannot afford to ignore workplace inclusion. Employees want to work where they feel valued. According to Monster.com, 86% of job seekers say workplace inclusivity influences their decision to join a company. Once onboarded, a Harvard Business Review study found that an inclusive work culture reduces turnover by up to 50%, saving companies millions.
Inclusive leadership is smart leadership. Great managers:
- Engage and develop their teams
- Mitigate workplace conflict
- Drive innovation through diverse perspectives
When managers lead with inclusion, employees feel valued and stay longer and teams are more collaborative and innovative. Without these skills, leaders risk poor retention, stalled performance and an inability to adapt to market shifts.
The Bottom Line: Leaders Must Lead, Not Retreat
Successful companies base their strategies on data and business objectives rather than fear. They manage risk, build resilience and prioritize performance.
The question isn’t whether inclusivity matters — it’s whether leaders are willing to make data-driven, risk-conscious decisions that future-proof their businesses.
True leadership means understanding the forces shaping your workforce, making informed choices and driving competitive advantage. Organizations that reduce inclusivity initiatives may face increased turnover, lower employee engagement and missed opportunities for innovation, impacting over business performance.
Companies that achieve long-term success are those that recognize inclusivity as a key component of effective leadership and business strategy.
