The remarkable and rapid capitulation of many corporations to the new administration’s anti-Diversity, Equity, and Inclusion (DEI) crusade is not just craven, it’s likely to impede the performance (and profitability) of these companies. Late last week, Target became the latest in a long line of corporations – following McDonald’s, Walmart, Meta and others – to roll back its DEI programs despite the benefits of DEI.

Contrary to the current backlash narrative, the benefits of DEI are many. DEI done right broadens applicant pools for jobs and increases the engagement, satisfaction, and productivity of those who are hired. To those who see DEI efforts as somehow in opposition to “merit,” as so many of the anti-DEI evangelists seem to, the fact is that smart DEI programs increase the level of merit of those who are hired, or promoted, not the opposite. Put simply, DEI isn’t just some moral cause; it’s also the smart thing to do if what you care about is effectiveness.

Yet, with notable exceptions – such as Costco, Apple, Microsoft, and a few others – rare are the large companies that have had the courage to both maintain and publicly defend their DEI programs, a chilling illustration of the degree to which the early days of the second Trump Administration have succeeded in sowing fear and deference.

In this context, the voices of foundation and nonprofit leaders are all the more crucial, notwithstanding whatever understandable concerns they may have about the risks of speaking out. I hope that private foundations with a commitment to DEI, in particular, will stand strong; after all, they enjoy freedoms – including a freedom from the pressures of fundraising – that other nonprofits don’t.

The Benefits of DEI: How It Strengthens Performance

Now is the time for leaders to explain what their DEI programs are all about instead of conceding ground on programs that are morally right, lead to stronger performance, and are fully lawful. A few days ago, House Minority Leader Hakeem Jeffries offered up a strong defense of DEI as rooted in American values – or at least its aspirational values. This is important. But I want to talk about what it means for employers, and why leaders who care about results will continue to prioritize it.

Read the full article about the benefits of DEI by Phil Buchanan at The Center for Effective Philanthropy.