We’ve seen brands like Target and Google scale back some of their DEI initiatives in response. Similarly, there’s been more turbulence around ESG programs and their continued future.
In this changing landscape, CEOs have been forced to wrestle with their own company’s perspective on DEI and sustainability. As they follow the latest news, they’ll have to ask themselves tough questions about their commitment to these efforts.
But despite this new climate, Madison is more committed than ever to these initiatives. Here’s why we think other companies should be too:
Brands are still investing in DEI
The Harvard Business Review recently published their 2024 report on the state of culture and inclusion. And while there are some brands getting rid of their programs, overall DEI efforts increased compared to prior years.
The global shift towards sustainability continues
While the SEC develops their upcoming climate disclosure rules, there are increasing government regulations on ESG reporting globally. In fact, 29 countries currently have formal ESG reporting requirements.1 This global demand for more transparency is getting noticed by executives. 85% of CIO’s state that ESG is an important factor in their investment decisions.2
Big companies are doubling down
Brands that remain committed to DEI are making their voices heard. In a recent statement to The Enquirer, P&G CEO Jon Moeller made it clear that DEI remains fundamental to their business strategy:
“Equality and inclusion is good for our business … this cannot and will not change. It’s critical to who we are and what we do, to our principles, values, and purpose, and most importantly to winning.”
When Costco was asked about potential risks of keeping their DEI program they responded similarly, saying that these programs “enhance our capacity to attract and retain employees who will help our business succeed.”
DEI and ESG efforts build trust and credibility
What do Gen Z, Gen X and millennials all have in common? They are passionate about doing business with brands that reflect their own values. Edelman’s 2024 report revealed that Gen Z’ers will judge a person’s social values based on the brands they buy. And according to Edelman’s Trust Barometer from this year, 67% of consumers are more likely to trust a company that demonstrates commitment to social issues.
These programs are an important recruitment factor as well, with 76% of employees wanting to work for a company that is trying to have a positive global impact.3
DEI terminology is evolving — but not going away
So far in 2025, the number of companies in the S&P 500 that have used the language of “diversity, equity and inclusion” in their financial reports has dropped 60% from last year. But that doesn’t mean their programs are gone. Even without those specific words, 78% of companies continue to discuss and emphasize diversity-related initiatives. This is a growing trend of softening or shifting language to communicate diversity-related commitments in a way that is potentially less controversial.4
Madison is committed to making voices heard
We are more committed than ever to raising up our fellow humans and working with companies who do the same. As the reporting landscape evolves, we will continue to stay ahead of the curve, deepen our understanding and adapt to better serve our clients. Working together, we can showcase your company’s commitment to sustainability and ethical governance in a powerful and authentic way. Let’s talk.