In recent years, diversity, equity, and inclusion (DEI) programs have gained significant traction in the corporate world as companies recognize the myriad benefits of fostering inclusive workplaces. These initiatives have helped organizations enhance their culture, boost employee morale, and improve overall business outcomes. However, a concerning trend has emerged in 2023. “DEI fatigue” is making headlines in business publications and some companies are choosing to end or limit their DEI programs altogether. In this blog post, we will explore why such actions can be detrimental and why companies should consider sustaining and even expanding their DEI efforts.

Understanding the Current DEI Landscape

In 2023, we have observed a number of companies scaling back or discontinuing their DEI programs for various reasons. While some cite budget constraints or shifting priorities, it is important to recognize the potential consequences of such actions.

Retention and Attraction of Talent

One of the primary reasons for companies to establish and maintain DEI programs is to attract, retain, and engage diverse talent. A diverse workforce brings together various perspectives, experiences, and backgrounds, which can lead to innovative problem-solving and increased productivity. Cutting back on DEI initiatives may deter talented individuals from joining the company and cause existing employees to reconsider their employment, ultimately leading to a talent drain.

Legal Compliance and DEI

Maintaining robust DEI programs can also help companies avoid legal issues related to discrimination and inequality in the workplace. Regulatory bodies expect companies to demonstrate compliance with all relevant employment laws. Scaling down DEI programs may expose companies to legal risks and potential lawsuits due to discriminatory practices. But that doesn’t mean that you can make a DEI program with no legal oversight – here is how we recommend making a compliant DEI program. 

Brand Reputation

A company’s commitment to DEI is closely tied to its reputation in the eyes of customers, partners, and investors and can help to diversify its customers. Public opinion increasingly favors organizations that actively promote diversity and inclusion. Reducing or eliminating DEI programs could damage a company’s image and impact its bottom line. Keep in mind that more and more top employee talent also expect their workplace to be committed to DEI programs. Gaining a reputation for having then removing a DEI program negatively impacts the brand reputation. 

Employee Well-being

DEI programs also play a pivotal role in improving employee well-being by creating an inclusive and equitable environment where everyone feels valued and respected. Cutting back on these programs can result in decreased employee morale, increased stress, and a higher turnover rate, all of which can negatively impact the work environment and overall productivity. It is important that your company actually works on its DEI initiatives when you say that you will – if not you run the risk of virtue signaling. 


While there may be various reasons why some companies are considering ending or limiting their DEI programs in 2023, it is essential to understand the broader implications of such decisions. Companies prioritizing diversity, equity, and inclusion tend to create more innovative, legally compliant, and employee-centric workplaces, ultimately bolstering their reputations and financial success.

Transcendent Law Group offers Diversity, Equity & Inclusion Implementation and Training that speaks directly to the organization’s culture. We assist companies with implementing new programs and strategies and assist organizations in updating more mature D&I programs. Contact us today to learn more!