This article was originally published on Sarah Liu’s LinkedIn.
The recent backlash against Diversity, Equity, and Inclusion (DEI) in the US, exacerbated by Trump’s executive order dismantling federal DEI programs, has intensified polarising debates about DEI’s role in business. While opposition to DEI isn’t new, the latest wave of misinformation on what DEI is, has emboldened critics and amplified concerns about its effectiveness.
Yet, the heightened scrutiny has also created an unprecedented opportunity for meaningful conversations. Leaders must resist the temptation to fall into a binary “for vs. against” mindset. Instead, understanding the uncomfortable truths behind the backlash will allow for more informed, strategic decisions about the way forward.
1. DEI Enables Meritocracy, It Doesn’t Undermine It
One of the biggest misconceptions is that DEI and meritocracy are at odds. Critics argue that ending DEI restores “merit-based opportunities,” assuming that workplaces function as pure meritocracies. This ignores decades of research proving that bias influences hiring, promotions, and compensation.
Consider this: resumes with traditionally white-sounding names receive 50% more callbacks than identical ones with ethnic names (HBR, 2022). My fellow 40 under 40 most influential Asian Australian Weh Yeoh, an accomplished leader, had his job application ignored by a law firm for weeks—until he changed his name to “Will Yates.” Within 20 minutes, he received a response.
DEI doesn’t lower standards—it raises them. It ensures that talent is recognised and nurtured, free from structural barriers. When implemented effectively, DEI expands the talent pool and strengthens business outcomes.
2. The biggest resistance comes from those with the most to lose in a truly meritocratic system
Expanded talent pools means more competition. Studies show that structured hiring practices aimed at reducing bias don’t give women and minorities an unfair advantage; instead, they prevent less-qualified men from leveraging informal networks and subjective assessments to secure positions (Harvard & Princeton, 2021).
Historically, white men—particularly those of average competency—have benefited from biased hiring and promotion systems. Research from LeanIn.org (2023) confirms that while highly competent men and women perform equally well in leadership, mediocre-performing men still advance at higher rates. DEI doesn’t disadvantage the talented—it removes artificial advantages in place for the less qualified.
This fear-based backlash highlights an inconvenient truth: some of the strongest resistance comes from those who have benefited from an inequitable system and fear losing their unearned privileges.
3. The mission doesn’t change, but the method must evolve
To move forward, businesses must acknowledge the flaws in traditional DEI practices. Many businesses have pursued a direct and quick DEI fix to a highly complex and nuanced problem – a disproportionate focus on numeric pledges without investing in structural change, leadership buy-in, or cultural transformation.
A lack of tolerance for debate and the rise of “cancel culture” have, at times, made inclusion efforts feel exclusionary. Well-intentioned quotas have also unintentionally cast doubt on the achievements of women and minorities. Performance issues among these groups are often unfairly attributed to DEI, whereas similar shortcomings in men are seen as individual failings.
DEI’s mission remains critical, but its methodology must evolve. Business leaders across APAC already recognise its importance: 90% view DEI as integral or somewhat integral to commercial success (TDC Global, 2024). Future efforts must focus on embedding equity into business processes, fostering open dialogue, building accurate understanding of what DEI is and is not, and demonstrating alignment with tangible business outcomes.
More Companies Are Staying the Course Than Retreating
Despite the noise, most organisations remain committed to DEI. Our pulse survey to APAC based multinational companies also found that 76.2% reported no change in DEI activities. Additionally, Resume.org’s survey to 1000 companies found 65% say their DEI budget will remain the same, and 22% plan to increase funding (resume org, 2025).
Even among companies adjusting their DEI communication strategies, the number scaling back (19%) is equal to those increasing visibility (19%). And when asked about the US rollback, 52.4% strongly disagreed, with 38.1% expressing some level of disagreement.
This data serves as a reality check: while some companies may be retreating, the majority recognise that long-term business success, talent strategy and innovation depend on sustained DEI efforts.
A Catalyst for Leadership
Rather than getting caught in polarised debates, this is a moment for organisations to demonstrate leadership on how DEI can be implemented effectively, driving both inclusivity and business performance.
This is a testing time for organisations to reexamine their values and for true leadership to be forged by honestly confronting these uncomfortable truths about DEI. This is not the first time the pendulum has swung and it certainly won’t be the last time. After the political polarization and hyperbolic headlines on DEI have subsided, what will your business stand for, what values would you lean on to help you attract, retain and advance the best talent? So, is DEI going away? Unfortunately not as long as inequities persist. The question is not whether DEI will return, but whether your organization will be ready to lead when it does.
Written by Sarah Liu, Founder & Managing Director, TDC Global.
