What: New research shows 83% of C-suite leaders advocate maintaining or expanding DEI efforts despite political pressure.

Why it is important: With 76% of employees more likely to stay with DEI-supportive companies and Gen Z showing even stronger preferences, the research demonstrates how DEI decisions directly impact talent retention and business performance .

The landmark study by Catalyst and NYU Law's Meltzer Center presents compelling evidence for maintaining diversity initiatives, based on responses from 2,500 participants across U.S. companies. Beyond legal risk mitigation, the research reveals strong generational preferences, with 86% of Gen Z employees favouring DEI-supportive employers. The business case is equally persuasive, as executives report positive correlations between DEI programs and financial performance (77%) and customer loyalty (81%). However, a notable perception gap exists between leadership and employees regarding DEI's future workplace integration. The study emphasises that successful implementation requires strategic, long-term approaches focusing on measurable outcomes rather than symbolic gestures. Organisations maintaining authentic commitments while adapting to current challenges are better positioned to attract talent, retain employees, and build lasting trust.

IADS Notes:The retail industry's approach to DEI has evolved significantly since late 2024. Walmart's successful strategy of maintaining inclusive practices while modifying terminology  contrasts sharply with Target's experience of declining traffic and substantial valuation loss following their DEI retreat . The emergence of the FAIR framework  has offered retailers a new path forward, while luxury brands demonstrate how maintaining firm DEI commitments can align with premium positioning .

New study finds risks of scaling back DEI - press release 

Risks of retreat: The enduring inclusion imperative- full report