Over the last two weeks, we have witnessed an unprecedented attack on Diversity, Equity and Inclusion (DEI) policies at the federal level. Unfortunately, the recent executive orders follow a trend of anti-diversity activism, with companies walking back commitments to equitable hiring practices and cutting roles focused on building inclusive cultures in the workplace.
Make no mistake: While some organizations are retreating from their DEI commitments, this approach is not just a rebuke of the value of diversity — it’s bad for business. As an organization tracking women’s corporate leadership for over two decades, The Forum of Executive Women has seen firsthand how companies with strong DEI practices consistently outperform their peers across every meaningful metric.
The Forum’s view:
The Forum of Executive Women was founded in 1977, a time when there were only a handful of women in leadership roles in Philadelphia. Forum members boldly gathered to share their experiences navigating barriers to leadership, galvanized by a mutual desire to advance more women into the top roles of the Philadelphia region.
Forum membership is open to women leaders who hold the top roles in our region’s companies. As women’s leadership in Philadelphia has expanded over the decades, so has our organization. DEI policies that support women and other minority groups on the path to top leadership are a key reason why The Forum is now over 600 members strong.
We hear firsthand from our members that the DEI policies that keep them thriving in the workplace — from mentoring and professional development to fair paid family leave policies — are what allow them to hold top roles. What is more, these policies allow them to be more productive in the workplace, meaning their businesses do better.
The numbers tell the story
Let’s be direct about what the research shows. McKinsey’s 2023 “Diversity Matters” report reveals that companies in the top quartile for gender diversity on executive teams were 27 percent more likely to outperform their peers in value creation. When examining board diversity, the impact on financial performance is even more compelling. A 2024 report highlighted that S&P 500 companies with greater board gender diversity experienced a 15 percent increase in return on equity and a 50 percent reduction in earnings risk compared to their less diverse counterparts.
The Forum’s Women in Leadership 2024 Report highlights the persistent challenge of gender representation in leadership positions. Despite ongoing DEI initiatives, women continue to be significantly underrepresented in senior roles. The report emphasizes that DEI is more than just a values-driven goal — it’s a strategic business advantage. Notably, research indicates that companies implementing inclusive practices experience a 35 percent boost in performance, underscoring the critical importance of diversity in corporate leadership.
DEI is more than just a values-driven goal — it’s a strategic business advantage.
S&P Global’s latest market intelligence report, cited in a study funded by e.l.f beauty, demonstrates that firms with women board members showed a 10 percent higher return on equity and a 15 percent higher profit margin compared to their less diverse counterparts. Additionally, the 2021 Credit Suisse Gender 3000 report found that companies with at least 30 percent female board representation achieved an annualized excess return of approximately 300 basis points compared to those with lower diversity levels.
The critical role of DEI training in business growth
DEI training isn’t a compliance checkbox — it’s a strategic business imperative. According to recent studies: Gartner’s 2024 HR Leaders Survey reveals companies with comprehensive DEI programs see 28 percent higher employee engagement and 26 percent improved team collaboration. Furthermore, The Boston Consulting Group found that companies maintaining DEI investments during economic uncertainty were 1.5 times more likely to increase market share and 2.1 times more likely to enter new markets successfully.
Taking action in uncertain times
Rather than backing away from DEI initiatives, it’s now more important than ever for business leaders to implement concrete actions to maintain and strengthen DEI initiatives. Companies should take steps to:
Implement rigorous metrics and accountability
- Establish clear, measurable goals for diversity at all leadership levels.
- Track and publicly report progress on representation, pay equity, and promotion rates.
- Hold leadership accountable for DEI outcomes through compensation and performance reviews.
Integrate DEI into core strategy
- Embed diversity considerations into all major business decisions.
- Ensure DEI metrics are reviewed with the same rigor as other business KPIs.
- Make diversity a central component of succession planning and talent development.
Build inclusive leadership capabilities
- Invest in comprehensive bias training for all decision-makers.
- Develop mentorship programs connecting current and emerging diverse leaders.
- Create clear pathways for advancement for underrepresented groups.
The path forward
The evidence is unequivocal: Organizations that maintain strong DEI commitments during uncertain times emerge stronger and better positioned for future success. This isn’t just about doing what’s right — though that matters — it’s about building more resilient, innovative, and profitable businesses.
Those who view the current political environment as an excuse to retreat from DEI commitments aren’t just failing their employees and communities — they’re compromising their own competitive position and future growth potential.
For businesses serious about long-term success, the path forward is clear: Maintain and strengthen DEI commitments, establish robust accountability measures, and create truly inclusive cultures where all talents can thrive. The organizations that do this won’t just be on the right side of history — they’ll be the ones leading their industries into the future.
Meghan Pierce is the President and CEO of The Forum of Executive Women, which is the Greater Philadelphia Region’s premier women’s organization, actively working to bring together, and leverage the influence of, professional women to expand the impact and power of women in the workplace and beyond. Forum membership has grown over four decades to comprise more than 600 of the most influential women leaders throughout the region. Visit www.foew.com for more information.
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