The difference between DEI & (small cap) dei

Oooh-weeee, the lines between business and politics over the past handful of years have become pretty blurry. But today, they're blurrier than ever. From misleading around who's actually paying for tariffs, to big tech paying for special presidential treatment, to social media giants making bold proclamations seemingly in an attempt to curry attention... and its all playing out right in front of everyone. Long gone are the days of subtlety and "backroom deals" where things happened and we all just wondered, wait, what's going on? Now, everything is just on display. There's something refreshing about the transparency, but also, kind of scary, brazen.

But no topic (at least at this very moment, end of January 2025) is as divisive and hot-to-the-touch as "DEI" is right now. In the wake of George Floyd's murder in 2020 (and the many years of countless murders and race-based discrimination before), American attention to diversity, equity and inclusion really seemed to take hold. Millions of people marched in the streets, used their voices on social and showed their support with their dollar... and Corporate America listened (and many of them acted). That was just 4-ish years ago. So why are "DEI" now the letters not be spoken?

I guess the general consensus is that maybe the DEI pendulum swung a little too far? Businesses, in reaction to the moment, created entire infrastructures to support more diverse representations of their workforce, marketing, and target audiences. And one can assume that since the reaction was so quick and so large, it felt like an over-indexing -- that those new institutions weren't built to last or withstand the pressure to come.

But no one could have really predicted that the pressure to come would be this big and this toxic. Just this week, Trump blamed DEI for a deadly plane crash two weeks into his second term (after having himself made several decisions that directly impacted flight safety). The claim seems ludicrous knowing all the facts but it is a capture of what his administration, many in corporate and many Americans actually feel, justified or not (heavily unjustified in my opinion). Many feel that DEI is the reason for their issues -- that had it not been for DEI, they'd be sitting at the metaphorical table. Had they truly been living and working within a meritocracy, they'd be successful. We know this is naive. We have never truly existed within a meritocracy. Just those that were given advantage looked different and came from different backgrounds. The elements shifted, but it's never been objectively "fair."

DEI, at its essence, is good. Diverse representation in all facets of life is important. Equitable treatment, no matter who you are, is an American right (or at least that's what we should believe). And inclusivity is how we build a better and stronger society that works for all, not just some.

And although DEI is inherently and objectively righteous, some believe that it's gone too far, had the opposite effect or outright unnecessary. I'd argue that hundreds of years of lived experiences and data would prove otherwise, but here we are. No matter where you stand on the capital DEI (the institutional efforts), I think we can all agree (or most) that small "d" diversity, small "e" equity and small "I" inclusion is good, important and worthy.

So that brings me to the okay-and... no cap "dei" is not a trend. But lots of companies are treating it as a trend. They're blowing in the wind of wherever the administration or loudest public sentiment is blowing. And it's obvious. Meta, Amazon, and Target are just a few of some really big players rolling back or completely eliminating their stated DEI policies and folks are clocking it and responding with boycotts.

These boycotts likely won't impact their bottom line today but their wishy-washiness and lack of conviction will not be forgotten by consumers or their employees. One day they're champions of diversity, equity and inclusion and the next they aren't really... is that really what these companies believe, the stand they're making? Sure, making corrections and tweaks is expected but completely deserting seems like a short-term decision with long-term impact.

Companies like Costco, Delta Airlines and Apple are (at least today) sticking with their bold DEI policies and that's likely (at least I've read) because the core tenants of dei (no cap) are baked into their vision and longevity planning.

These companies believe strongly in diversity, equity and inclusion - from how their workforce looks, who they make products for, and sell products to... it's weaved into their organizational fabric. They are not easily swayed by fickle administrative or public sentiment and are not buying into the misleading narratives because they've always believed in the importance and power of dei. The catalysts of 2020 expedited their movement, it didn't create them out of thin air. And I believe that this respect, integrity and commitment to what's good and right will be a big differentiator going forward.

Many want us to believe that DEI is a bunch of "biased" policies that are easily turned on and off at someone else's benefit, but dei has always been and will always be a societal truth -- that the more diverse, equal and inclusive we are, the better we all are, that dei benefits us all and makes community stronger. And the companies that get that are the companies that will prosper.