Why European companies should stand firm: DEI is not ‘woke’, but a fundamental part of responsible business conduct

In recent months, we have seen some European – including Dutch – companies reconsidering or even reducing their Diversity, Equity & Inclusion (DEI) policy. Not because of internal evaluations or because the policy does not work, but out of fear of legal or commercial consequences from the United States.

This brings an important question to the table: what does it take to hold on to your values — and what is the true cost of adjusting your DEI course?

Pressure on DEI from America to Europe

De maatschappelijke en politieke backlash tegen DEI in de Verenigde Staten heeft tastbare gevolgen. Grote Amerikaanse werkgevers zoals Google en Meta schalen hun diversiteitsprogramma’s terug, ondanks rechterlijke uitspraken die sommige anti-DEI-maatregelen van Trump hebben geblokkeerd (source: CHRO).

Even in the Netherlands, we are now seeing companies weakening, reformulating or quietly minimizing their DEI efforts. In a recent conversation, a company told me:
“We are not stopping working on diversity and inclusion. But in the U.S., we use different terms so that we don’t become targets.”

This raises an uncomfortable dilemma: if you rename your principles to avoid conflict, how much of your values will be left in the end?

DEI is not an American import, but a universal human rights policy

Diversity, inclusion and equal treatment are not fashionable concepts but are anchored in international human rights standards and European legislation.

In addition, there are other risks:

• You lose credibility with employees, customers and investors
• You lose top talent who choose employers who match their values
• You weaken your social role especially now that more responsibility and transparency are required of companies.

Wanneer bedrijven DEI terugschroeven uit angst voor backlash, stellen ze niet alleen hun reputatie en geloofwaardigheid in Europa op het spel. Ze riskeren ook het verlies van talent en innovatiekracht, precies op een moment dat krapte op de arbeidsmarkt serieuze druk zet op bedrijfsmodellen (source: FD).

In times when every employee counts, and societal expectations around social justice are growing, compromising on DEI policies can be an expensive mistake.

Silence is also a choice

As Martin Luther King Jr. warned:

“In the end, we will remember not the words of our enemies, but the silence of our friends.

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Companies that neutralize or weaken their DEI policies now are not only sacrificing their social responsibility. They also show how easily values fade under pressure.

And in a broader sense:

“The only thing necessary for the triumph of evil is for good men to do nothing.”
– Edmund Burke

When we allow ourselves to be steered by fear of political forces that seek to roll back equality and inclusion, we participate – consciously or unconsciously – in normalizing those forces. In addition, there are other risks:

• You lose credibility with employees, customers and investors
• You lose top talent who choose employers who match their values
• You weaken your social role especially now that more responsibility and transparency are required of companies.

What companies need to do now: stay the course

• Continue to communicate clearly about the value of diversity, equity, and inclusion, even as terms change in certain markets.
• Embed DEI in your foundation, not as an afterthought but as an integral part of good governance and risk management.
• Build resilient organizations that can deal with societal pressures without denying their core values.
• Be transparent to employees, customers and stakeholders about your principles and choices.

DEI is not a luxury. It is the practical translation of the fundamental rights on which European society is built. It is precisely when the pressure mounts that it becomes clear who is showing real leadership. DEI is not optional – it is essential.

If you are interested in how to properly embed DEI as part of corporate responsibility, do not hesitate to contact: l.unger@humanrightsatwork.nl or tel. 0651029965..