The Insularity Trap: Why Rolling Back DEI is a Mistake.
“Lazy DEI is focused on quotas and forcing the issue, but the hard work is challenging what we are putting into our organisations and where it’s coming from.”
There is a growing pushback against diversity, equity and inclusion (DEI). In boardrooms, political arenas and social media debates, we hear claims that DEI has gone too far, that it prioritises quotas over merit, or that it unfairly disadvantages certain groups. But let’s be clear: true DEI was never about exclusion. It is about opening doors, ensuring that talent and potential are not dictated by background, privilege or access to elite networks.
The Myth of Meritocracy
I also take issue with the idea that the system was ever a complete, true meritocracy - it wasn’t. It was hiring like for like, doors closed, opportunity restricted and ultimately limiting the productivity and growth potential of our economy. The old boys’ club was thriving.
I know this firsthand. I didn’t come from generational wealth or an influential family. I am your classic lower-middle-class person and I wasn’t part of the “inner circle.” In my teenage years, I struggled with my sexual identity and was bullied. This affected my academic performance, and as a result, I didn’t attend a so-called top-tier university. But throughout my life, I was determined to work hard and keep going, and I was also given opportunities by people and organisations that recognised my potential. Those opportunities changed my life. They weren’t handouts or box-ticking exercises, rather they were about ensuring that ability, ambition and determination were given a fair chance to succeed.
Despite being unconventional, one of the defining moments in my journey was when a senior leader saw something in me despite my background. I didn’t have a prestigious last name or a private school education, but I had curiosity, drive and a willingness to learn. That opportunity allowed me to prove myself and, in turn, opened more doors. Without those open doors being opened in my early life, I wouldn’t be where I am today. As a result I am determined to ensure those doors stay open for the next generation of talent.
The Business Case: Profit, Not Politics
This is the essence of true DEI. It is not about quotas or predetermined outcomes, it is about making sure the playing field is genuinely level at the point of entry and that there is opportunity to seize and dreams to be realised. Organisations that truly embrace DEI focus on inputs - on expanding access to opportunity, providing mentorship, and ensuring that the best talent can rise, regardless of where they come from. This is not just the right thing to do, it is smart business.
The research is clear, diverse teams drive better decisions, broader perspectives and stronger financial performance. According to a McKinsey report in 2019, companies in the top quartile for diversity are 36% more likely to outperform their peers. The data has only strengthened over time, the latest McKinsey 2023/2024 report Diversity Matters Even More shows the likelihood of financial outperformance has risen to 39% for diverse executive teams. Yet, despite these numbers, some organisations are now quietly (or loudly) rolling back their DEI commitments, citing external pressures and an evolved landscape. But bending to backlash doesn’t just weaken an organisation internally - it erodes trust externally as well. Your customers and your clients are watching.
The New Crisis: Insularity
The newly released 2026 Edelman Trust Barometer reveals a dangerous shift that reinforces why leadership cannot retreat. We have moved beyond 'grievance' into a crisis of 'insularity.' The data shows that 70% of people globally are now unwilling to trust someone who has different values or backgrounds to them. We are now retreating into bubbles.
Even more alarming for leaders is that 42% of employees say they would rather switch departments than report to a manager with different values. If we roll back DEI now, we validate this isolation. We allow our organisations to become fragmented echo chambers.
However, there is a lifeline. The report identifies 'My Employer' as the most trusted institution (78%), far outstripping traditional institutions like government and media. Business leaders are the last line of defence. We have a unique mandate to bring different people together. If we abandon that responsibility to appease a short-term cultural backlash, we don't just lose talent, we lose the ability to foster the collaboration that drives innovation.
A Leadership Test
The backlash against DEI is not just a passing storm, it is a defining leadership test. How organisations respond today will cement their reputation among employees, customers and stakeholders for the foreseeable future. Those who cave to pressure and roll back their commitment to DEI will send a clear message - that their values are negotiable and that they lack the courage to stand firm in the face of resistance. Consequentially they will pay the price - not just in moral credibility, but in lost talent, declining relevance and diminished trust.
Some leaders are already making a fundamental mistake by viewing DEI as a political issue rather than a business and moral imperative. They fear backlash more than they value progress. But leadership, especially in business, isn’t about appeasing the loudest voices. It’s about making the right decisions, even when they’re difficult.
The resistance to DEI is not happening in isolation. It is part of a broader cultural and political moment - a reaction to economic uncertainty, shifting power structures, and, in some cases, fear of change. When people feel anxious about their own prospects, they sometimes look for scapegoats. DEI becomes an easy target, misrepresented as an effort to exclude rather than to include.
It would be inauthentic not to acknowledge that elements of the DEI agenda have overreached, but that should not be an excuse to dismantle it entirely. If we focus on the fundamentals - giving opportunity to those who have historically lacked it as a way to unlock economic growth - we can keep moving forward.
Business leaders cannot afford to be swayed by reactionary narratives. The companies that thrive are the ones that build for the future, not the ones that cling to outdated systems that fail to recognise and harness all available talent. The best leaders understand that inclusion is not a zero-sum game - it is a strategy for long-term success.
Lazy DEI is focused on quotas and forcing the issue, but the hard work is challenging what we are putting into our organisations and where it’s coming from. The companies and leaders who stand firm, who recognise that true DEI is about fairness and access rather than forced outcomes, will emerge stronger. They will attract and retain the best talent, build trust with their customers and demonstrate the kind of leadership that withstands short-term headwinds for long-term success.
So, the question is, when the dust settles, what kind of leader, what kind of organisation, do you want to be? Will you be remembered as someone who stood for opportunity, or as someone who folded under pressure? Those who have already buckled, the ultimate redemption in leadership is knowing when you have got it wrong and doing the right thing.
Make no mistake, however, this is a moment of reckoning. History will remember the leaders who stood up for their values, even when it was difficult. The companies that remain steadfast in their DEI commitments will be the ones that thrive in the years to come.
Now is the time to lead.
Dale McDermott
