Exploring challenges and opportunities related to diversity, equity, and inclusion

Welcome to The Fixer Focus, where we share insights and retail industry updates from our Fixer team of experts.  In this issue, Founder & CEO, Nicole Marra, and Executive Advisor - Corporate Culture, Yaseen Eldik, delve into the evolving challenges and opportunities surrounding diversity, equity, and inclusion (DEI) in the wake of new regulations and cultural shifts. They provide essential guidance for business leaders on how to navigate these complexities.

With a new year and a new presidential administration, organizations are navigating rapid changes and directives—particularly in diversity, equity, and inclusion (DEI) policies. The evolving legal and cultural landscape has led many companies to reassess their DEI strategies, balancing compliance with their long-term commitment to fostering inclusive workplaces.
 

The Landscape for Federal Contractors and Private Sector Businesses

Recent executive orders have placed DEI policies—particularly those of federal contractors—under increased scrutiny. While it’s too early to determine the full impact, organizations that work with the federal government should be proactive in assessing their policies to ensure compliance with evolving regulations.

It’s also important to recognize that federal government initiatives differ significantly from private-sector approaches. For instance:

• Federal agencies and contractors must follow strict legal frameworks and evolving compliance mandates.  For example, Google is eliminating its DEI hiring goals and evaluating other changes to its DEI programs in order to comply with recent court decisions and U.S. Executive Orders.

• Major corporations with high visibility are taking various approaches to their existing internal and external DEI programs and commitments. Some, like Walmart, Meta, and McDonald's, are walking back many of their diversity initiatives, while others, such as JPMorgan Chase, Costco, and Apple, are reaffirming their commitments to existing DEI practices. Meanwhile, a growing number of brands like Target, Ford, and Lowe’s are refining or rebranding their DEI programs while maintaining their dedication to inclusive workplaces.

• Smaller businesses can navigate these changes quietly and with more agility, often tailoring their DEI strategies to align with both legal requirements and the expectations of employees and customers.

Shifts in Naming DEI and Corporate Culture Programming

The way organizations talk about DEI is evolving, especially since the term has begun to take on broader meaning that can be interpreted in many different ways. Some companies are moving away from traditional DEI language in response to cultural shifts and political discourse. Instead, they are incorporating broader terms such as:

• Belonging – Emphasizing an inclusive culture where all employees feel valued.

• Diverse Perspectives – Focusing on the business benefits of cognitive and experiential diversity.

• Corporate Culture & Inclusive Leadership – Positioning DEI as part of a holistic leadership and workplace strategy.

While messaging may shift, the core objective remains unchanged: diverse workplaces drive innovation, improve decision-making, and enhance customer engagement.  Additionally, it is important to clarify a common misconception—race-based hiring decisions have never been legally permissible since the passage of The Civil Rights Act of 1964. While organizations may focus on expanding outreach and increasing diversity in applicant pools, all hiring must remain merit-based and in compliance with equal employment opportunity laws.
 

Adapting to Political and Cultural Changes

The evolving political and cultural landscape has made DEI a more polarizing topic, prompting businesses to reassess their strategies to avoid unnecessary risk while maintaining their core values.

Rather than reacting to external pressures or making abrupt changes, we encourage organizations to take a strategic, long-term approach:

• Ensure messaging aligns with business objectives – Avoid reactionary shifts that may create confusion or uncertainty among employees and stakeholders.

• Stay informed about regulatory changes – Federal policies will continue to evolve, and staying ahead of compliance requirements is critical.

• Engage employees and leadership in the conversation – A strong corporate culture is built through collaboration, transparency, and intentionality.

Four Key Steps for Businesses

To successfully navigate these changes, we recommend the following approach:

1. Evaluate Your Current DEI Strategy

   • Conduct a thorough review of existing DEI programs, training, and policies.

   • Consider whether rebranding or repositioning DEI initiatives (e.g., using terms like "corporate culture" or "inclusive leadership") better aligns with your organizational goals.

2. Clarify Your Objectives

   • Define your company’s diversity and inclusion goals in a way that supports your long-term vision and operational needs.

   • Align DEI strategies with broader business outcomes, such as employee retention, innovation, and customer engagement.

3. Ensure Compliance and Best Practices

   • Reinforce equitable hiring and workplace policies that focus on skills, experience, and merit.

   • Conduct legal and HR audits to ensure alignment with federal, state, and local regulations.

   • Avoid legally impermissible practices such as race-based hiring while still fostering inclusive recruitment strategies.

4. Take a Holistic Approach

   • Recognize that DEI efforts should extend beyond compliance to enhance overall workplace culture, employee engagement, and customer relationships.

   • Develop leadership training programs that support inclusive decision-making.

   • Leverage data and employee feedback to continuously refine and improve DEI strategies.

Final Thoughts

DEI is not a one-size-fits-all initiative. Each organization must define what diversity and inclusion mean for them and develop a tailored strategy that reflects their unique industry, workforce, and long-term goals.  A diverse workforce isn’t just about compliance—it’s a business advantage. Industries such as technology, retail, and financial services have seen measurable benefits from fostering inclusive workplaces, including improved innovation, higher employee engagement, and stronger customer loyalty.

Helping organizations transform their corporate culture, while staying true to their mission, values, and business objectives, has always been a core focus for Fixer.  We understand the complexity of these recent shifts in the DEI landscape and are here to provide clarity, guidance, and strategic support. Our approach empowers organizations to create inclusive, high-performing workplaces that reflect both their commitment to diversity and the realities of the current regulatory environment.