In an era where DEI has become both a business imperative and a political flashpoint, Jenny Medina Morris, managing director at OmniCulture Communications, explores its evolving role in corporate strategy and communications. In this piece, she examines how DEI, once a high-profile commitment for brands, is quietly being rebranded rather than abandoned. As companies shift away from performative diversity statements and embed inclusivity into broader business functions, PR professionals must adapt their messaging strategies to ensure authenticity and impact. Read on for insights on the key trends shaping DEI’s transformation and what this means for communicators navigating an increasingly polarized landscape.

Jenny with Contra-Tiempo, an activist dance theater company from CA, promoting equity though the arts.

Let’s be real, DEI isn’t new. It has been around since the civil rights movement of the 1960s, when laws like the Civil Rights Act of 1964 pushed businesses to address workplace discrimination. But it wasn’t until 2020, after George Floyd’s murder, that DEI surged at an unprecedented scale.

Suddenly, corporations were making sweeping commitments. Budgets expanded, chief diversity officers were hired and brands rushed to put out solidarity statements. Some of it was genuine, but let’s be honest, some of it was just about optics.

That same year, McKinsey & Company estimated global corporate spending on DEI at $7.5 billion, projecting it could surpass $15 billion by 2026. In the U.S., a 2022 article in the Harvard Business Review reported that companies spend about $8 billion annually on DEI training.

A few years later, the momentum is shifting. The Trump administration’s rollback of DEI programs, coupled with legal challenges and political pushback, has changed the conversation. Many companies are quietly scaling back, downsizing diversity departments and, at least publicly, talking less about DEI.

So, the big question: Is DEI dead?

The corporate shift: rebranding, not disbanding

Not exactly, it’s evolving. Instead of eliminating DEI, many companies are repackaging it under different names to avoid controversy while keeping their commitments intact. DEI isn’t disappearing, it’s just getting a new wardrobe and a less controversial nickname.

Take McDonald’s. It didn’t cut its DEI team but renamed it the “Global Inclusion Team.” 

Starbucks removed DEI from its executive bonus criteria yet still promotes “Inclusion, Diversity & Belonging.” Duolingo and JetBlue have labeled DEI as a “business risk” in their filings but continue internal diversity initiatives.

This isn’t by accident, it’s a strategy. Instead of making big public pledges, companies are embedding DEI into broader corporate structures like environmental, social and governance efforts or workforce development programs. The goal is to avoid political backlash while continuing to push for inclusivity.

From conversations with senior PR leaders, it’s clear that DEI isn’t going away, it’s just becoming less of a front-facing branding play. Companies still want to show progress, but they don’t want diversity to become an ideological battleground.

This shift means how we talk about DEI is changing. It’s no longer just about corporate responsibility, it’s about business strategy, reputation management and consumer trust. The challenge for communicators isn’t just keeping DEI messaging relevant but making it authentic in an increasingly divided landscape.

Cultural competence beyond the DEI name

This is where PR comes in. The real conversation shouldn’t be about whether companies are still using the term DEI, it should be about whether they are actually fostering inclusivity in ways that matter.

The biggest mistake companies have made with DEI is treating it like a compliance task instead of a cultural shift. When diversity is just a checked box, it fails, both in impact and credibility.

We’ve all seen brands assume that simply translating a message makes it culturally relevant. It doesn’t. Understanding language is one thing, but understanding context, nuance and how different demographics connect with messaging is even more critical. If companies are just throwing out diversity messaging without considering regional, cultural and audience nuances, it’s not effective and can backfire.

Navigating the DEI shift for PR pros

For communicators, DEI’s rebrand means we need to adjust our approach. Messaging needs to be authentic, aligned with business goals and free of performative fluff. Here’s how PR teams can navigate this shift effectively:

• Messaging strategies: Avoid vague DEI statements. Instead, frame diversity efforts as part of talent development, innovation or leadership strategies. Make it a business advantage, not just a social good.
• Crisis and reputation management: Companies will continue facing DEI-related scrutiny. PR teams need to be proactive, not reactive, in preparing leadership for tough questions.
• Media relations: Journalists are moving past surface-level DEI stories. Instead of pushing generic diversity messaging, PR pros should focus on data, real progress and long-term strategy.
• Inclusive storytelling: Ensure that all voices are represented in your narratives. Craft stories that authentically reflect diverse communities, considering cultural nuances and regional contexts to foster genuine connections with audiences.
• Brand and corporate positioning: Companies should ensure their commitment to diversity is reflected in leadership, partnerships and business practices, not just external messaging. Instead of performative statements, they should show measurable impact, such as increasing diversity in leadership or supporting diverse suppliers.

We’re already seeing this play out in sectors like luxury and tech. Brands like Gucci and LVMH have pivoted from loud DEI campaigns to more subtle storytelling about craftsmanship, sustainability and workforce development. Meanwhile, companies like Microsoft and Salesforce are shifting DEI messaging away from activism toward business performance and innovation.

So, let’s set the record straight. DEI isn’t disappearing. It’s just being woven into business growth, corporate culture and long-term strategy in ways that are more subtle, strategic and, hopefully, more effective.

The Public Relations Society of America has reaffirmed that DEI is still critical to the future of business and communications. Consumers, employees and investors still expect companies to demonstrate inclusivity, whether they call it DEI, ESG, inclusion or something else entirely.

Ultimately, it’s not about what companies call their DEI programs, it’s about whether they actually create environments where all their audiences feel valued.