What: Despite continued corporate commitment to DEI in the US, the rollback of flexible work policies is undermining inclusion and worsening outcomes for underrepresented groups.

Why it is important: The US experience demonstrates that effective inclusion relies on systemic workplace support, not just formal DEI programs, reinforcing findings from recent sector analyses.

Recent research from Catalyst and New York University’s School of Law reveals that while 80% of surveyed US companies claim ongoing commitment to diversity, equity, and inclusion (DEI), the rollback of flexible workplace policies is eroding real progress for women and minorities. The study highlights that flexible arrangements such as family leave and adaptable scheduling have been more successful in diversifying management than traditional DEI programs. However, as companies revert to more rigid, command-and-control models, these gains are at risk. The employment rate for Black women has seen one of its steepest declines in 25 years, and the unemployment rate for Black workers continues to outpace the general population. Many organizations, under political and regulatory pressure, are shifting away from explicit DEI language and programs, yet the infrastructure that enabled broader participation is being dismantled. This shift threatens to reverse advancements in workplace diversity and inclusion, particularly in sectors like retail, where operational resilience and talent retention depend on inclusive practices.

IADS Notes: The current debate over the future of DEI in corporate America, as highlighted by the recent Catalyst and NYU study, closely mirrors the retail sector’s experience over the past year. As detailed by Harvard Business Review in February 2026, retailers have faced mounting legal and political pressures, prompting many to rebrand or scale back explicit DEI initiatives while maintaining a focus on inclusion and belonging. This shift is evident in the widespread adoption of frameworks like FAIR, which prioritize fairness, access, inclusion, and representation, allowing companies to balance compliance with authentic workplace culture. According to ESG Dive in July 2025, 20% of companies dismantled DEI programs, leading to decreased morale and increased turnover, yet most retailers, as noted by HR Dive in October 2025 and ESG Dive in May 2025, have opted for nuanced adjustments rather than wholesale abandonment of inclusion efforts. The sector’s response underscores the operational and reputational risks of inconsistent DEI values, as seen in Target’s significant losses compared to Walmart’s successful adaptation, a trend also reported by ESG Dive in January 2026. As regulatory scrutiny intensifies, the imperative for systemic, measurable inclusion remains central to talent retention, business resilience, and stakeholder trust, even as the language and structure of DEI programs evolve.

DEI isn’t dead. But it’s not really alive, either