Diversity, Equity and Inclusion in Workplace


Published on 07 Nov 2025

Syllabus

GS II:WHY IN NEWS? In his second term as President of the United States, Donald Trump has moved to dismantle the DEI (Diversity, Equity and Inclusion) policies initiated by his predecessor Joe Biden.

SHORTAKE


Murder of George Floyd: A Black man was murdered on May 25, 2020, in Minneapolis, Minnesota, when police officer Derek Chauvin knelt on his neck for over nine minutes despite Floyd repeatedly saying he couldn't breathe. His death sparked global protests against police brutality and racism.

Reverse discrimination: Refers to policies or actions that favour historically disadvantaged groups in a way that may disadvantage majority or historically privileged groups. It is often debated in the context of affirmative action and DEI policies, where concerns arise about fairness and meritocracy.




INTRODUCTION

Diversity, Equity, and Inclusion (DEI) initiatives were introduced to promote fairer workplaces by addressing discrimination and improving opportunities for marginalized groups. However, growing backlash and ineffective implementation have highlighted the need for more structured, data-driven approaches to ensure meaningful impact.

What is DEI ?


  • Diversity is embracing the differences everyone brings to the table, whether those are someone’s race, age, ethnicity, religion, gender, sexual orientation, physical ability or other aspects of social identity.

  • Equity is treating everyone fairly and providing equal opportunities.

  • Inclusion is respecting everyone’s voice and creating a culture in which people from all backgrounds feel encouraged to express their ideas and perspectives.

History of DEI

  • 1941: US President Franklin D. Roosevelt bans racial discrimination in hiring defence contractors during World War II.

  • Civil Rights Movement (1960s): DEI efforts trace back to the Civil Rights Movement in the US, which pushed for workplace diversity and inclusion.

  • Civil Rights Act of 1964: Outlawed employment discrimination based on race, religion, sex, color, and national origin; established the Equal Employment Opportunity Commission (EEOC).

  • Affirmative Action (1960s–1970s): Initiated by President John F. Kennedy via executive order, requiring federal contractors to ensure equal treatment of employees based on race, color, religion, and sex.

  • Rise of Diversity Training (1970s–1980s): Companies began incorporating diversity training as discrimination lawsuits increased under the EEOC’s enforcement.

  • Corporate Deregulation (1980s):  President Ronald Reagan's administration shifted responsibility for addressing discrimination to corporations, leading to fragmented and inconsistent DEI efforts.

  • Slow DEI Growth (1990s–2010s): Some companies maintained DEI programs, but many lacked resources or long-term commitment, resulting in a "piecemeal" approach.

  • Black Lives Matter Movement (2015): Emerges in response to police violence against Black Americans, increasing focus on racial justice.

  • #MeToo movement (2017-2018): Raises awareness of gender discrimination, reinforcing workplace DEI initiatives.

  • Post-George Floyd Surge (2020–2022): Following George Floyd’s murder in 2020, corporate DEI roles increased by 168.9%, with major companies investing in leadership positions.

  • Recent Rollbacks (2023–Present): The U.S. Supreme Court ruling against affirmative action in college admissions and declining corporate support have led to the reduction of DEI roles and initiatives.


About Trump’s Anti -DEI policy

  • Conservative Backlash: Trump represents a section of conservatives who view DEI as discriminatory against white citizens and a form of reverse discrimination.

  • Blaming DEI for Broader Issues: He has linked DEI to unrelated incidents, such as a mid-air collision, despite no official confirmation.

    • Trump blamed diversity hires of previous governments for the midair collision between an airliner and a military helicopter in the Potomac River last month that killed 67 people. He said that diversity kept out good employees at the Federal Aviation Administration.

  • Judicial Influence: His Supreme Court appointees played a key role in striking down affirmative action in college admissions in 2023.

  • Corporate Reactions: While companies like Meta, Amazon, and Google have scaled back DEI initiatives, others like Apple, Costco, and Cisco continue to support them.

  • DEI Policies Banned by Trump

    • EO 14151: Ending Radical and Wasteful Government DEI Programs and Preferencing

      • Ordered federal agencies to end DEI initiatives.

      • Required agencies to report employees in DEI and environmental justice roles within 60 days.

    • EO 141713: Ending Illegal Discrimination and Restoring Merit-Based Opportunity

      • Repealed sections of the 1965 Equal Employment Opportunity Act.

      • Discouraged federal agencies from awarding contracts to companies with DEI policies.

Arguments in Favour of DEI

  • Enhances Business Performance: Diverse workforces improve innovation, decision-making, and financial success.

  • Addresses Systemic Barriers: Advocates highlight DEI’s role in providing opportunities to those disadvantaged by race, socioeconomic background, or education.

  • Fair Talent Development: DEI ensures hidden or underprivileged talent is identified and nurtured in workplaces and institutions.

  • Corporate Social Responsibility: Many businesses see DEI as part of their ethical responsibility to foster inclusive workplaces and social equity.

  • Legal and Ethical Justification: While critics see DEI as discriminatory, supporters argue that it aligns with civil rights laws by actively countering historical and systemic discrimination.

  • Long-Term Economic Benefits: Studies suggest companies with strong DEI policies attract a broader customer base and enhance employee satisfaction

Arguments Against DEI

  • Politicisation of DEI: Critics argue that DEI initiatives are politically driven and promote a specific partisan ideology rather than neutral diversity efforts.

  • Reverse Discrimination: Some claim DEI enforces racial preferences and categorises individuals into "oppressors" and "oppressed."

  • Failure to Protect All Groups: Reports, such as Stanford’s 2024 study, highlight cases where Jewish students and faculty felt DEI programs erased their identity and failed to address antisemitism.

  • Violation of Merit-Based Principles: Critics like investor Bill Ackman and Elon Musk argue DEI policies undermine meritocracy by prioritising demographic quotas over individual qualifications.

  • Legality Concerns: Some assert that DEI practices may violate anti-discrimination laws by explicitly favouring certain racial or gender groups.

  • Economic Impact: Detractors claim companies implementing DEI initiatives may sacrifice efficiency and profitability by prioritising social agendas over business needs.

  • Financial Viability Concerns: Many companies struggle to justify DEI initiatives' costs to shareholders, leading to rebranding or rollbacks.


India and DEI Policy

There are no DEI Frameworks for India.Affirmative actions in the Indian constitution can be considered as an alternative for the same.

  • Article 16: Equality of opportunities regardless of any kind of discrimination.

  • Reservation system: 

    • The Indian Constitution mandated reservations for communities identified as Scheduled Castes and Scheduled Tribes way back in 1950. 

    • The Mandal Commission recommended reservations for Other Backward Communities in 1990.

  • Indian Companies act, 2013: Mandates at least one woman director in every listed company and unlisted public company with ₹100 crore+ paid-up capital or ₹300 crore+ turnover.

  • POSH Act, 2013: Mandates workplaces to prevent and address sexual harassment, ensuring safer environments.

  • RPwD Act,2016: Focuses on inclusivity for persons with disabilities, mandating accessibility measures in workplaces.


Global Best Practises of Inclusion

  • JPMorgan Chase: CEO Jamie Dimon reaffirmed the bank’s commitment to supporting diverse communities and the company continues DEI programs like “Women on the Move” and “Advancing Black Pathways.”

  • e.l.f. Beauty: The company lacks formal DEI roles but has a diverse board comprising 78% women and 44% people of colour. It promotes corporate diversity through initiatives like “The Not-So-White Paper.”

  • Wipro: Women comprise 36.6% of Wipro's workforce. Initiatives like Women of Wipro (WoW), HerCode, and Begin Again empower women in STEM, leading to a 2.5x rise in women leaders over three years.

  • Lemon Tree Hotels: Opportunity Deprived Indian (ODI) initiative employs individuals with disabilities and marginalized backgrounds. It offers specific job roles, training, and support, with around 20% of its workforce comprising such employees.



WAY FORWARD

Expanding Representation: Broaden affirmative action policies to include marginalised groups beyond caste and gender, such as LGBTQ+ individuals and persons with disabilities.
Pay Equity Reviews: Conduct periodic audits to identify wage disparities based on gender, race, or other factors. Implement corrective measures such as salary adjustments and transparent pay structures to ensure fair compensation.
Enhancing Women’s Workforce Participation :Strengthen policies supporting maternity benefits, childcare facilities, and gender-equal pay structures.
Education & Skill Development: Promote scholarships, mentorship programmes, and vocational training for underrepresented groups to improve employability.
Economic Incentives for DEI Compliance:Offer tax benefits, funding, or certifications to companies actively promoting diversity and equity initiatives.
Periodic Review & Adaptation: Regularly assess DEI policies through independent audits and stakeholder consultations to ensure sustained effectiveness.
Workplace Sensitisation: Implement regular DEI training for employees to foster cultural sensitivity, combat discrimination, and promote inclusive leadership.
Coalition-Building Approach: Position DEI as a tool for improving workplace conditions for all employees rather than favouring specific groups. Highlight universal benefits such as improved parental leave, flexible work policies, and better employee well-being.


CONCLUSION


DEI policies play a crucial role in fostering innovation, ensuring workplace equity, and expanding opportunities for underrepresented groups. While they contribute to economic growth and social justice, concerns about meritocracy and tokenism must be addressed. The need of the hour is to refine and implement DEI policies thoughtfully rather than dismantling them.

PYQ MAPPING

Q) Do government’s schemes for up-lifting vulnerable and backward communities by protecting required social resources for them, lead to their exclusion in establishing businesses in urban economics? (2014)

Q) Does the Rights of Persons with Disabilities Act, 2016 ensure effective mechanisms for empowerment and inclusion of the intended beneficiaries in the society? Discuss (2017)


SAMPLE QUESTION

Q) “Diversity, Equity, and Inclusion (DEI) initiatives aim to create a fair and representative society but are often criticised as reverse discrimination.” Critically analyse the role of DEI policies in governance and social justice. (10 marks, 150 words)

Tags:
Polity

Keywords:
Rights of Persons with Disabilities Act Social Justice George Floyd DEI Diversity Equity and Inclusion Trump’s Anti -DEI policy POSH Act Racism