At 48 feet high and over 4K pounds, the world’s largest functional weathervane can be found in Montague, Michigan. Like that 48-foot arrow, organizations often find themselves responding to changes in the surrounding climate — adjusting their direction in response to new currents. Today, as external attitudes and policies around workplace initiatives evolve, the challenge for many companies is reading the breeze — and deciding how, or whether, to chart a new course.As regulators pull back their support for diversity, equity, and inclusion (DEI) initiatives and encourage businesses to do the same, some organizations still find value in DEI-related efforts. Changing Views on DEI Federal DEI programs were eliminated through executive orders early this year, with businesses encouraged to follow suit. The basis for this change is the belief that DEI practices unfairly disadvantage certain groups for the benefit of others. Last year, research from the Pew Research Center showed that support for DEI among American workers has shifted slightly more negatively, with the trend reflected across the board, regardless of political affiliation, gender, or race. Sentiments toward DEI efforts in workplaces are still more positive than negative, even after the federal government’s change of direction, but the trend does show potential for a cultural or social change among American employees that merits consideration. How Major Companies Are Approaching DEIFollowing the executive orders, plenty of businesses have publicly abandoned and distanced themselves from DEI initiatives they had underway, including the banking industry. Despite its position as the first US bank with a female CEO, Citibank renamed its DEI group as “talent management and engagement,” while other banks, such as Wells Fargo and Bank of America, have significantly decreased spending on DEI initiatives, changed the language used to describe such initiatives in their annual reports, or eliminated diversity requirements for executive positions. According to data from Resume.org, 20% of companies have eliminated DEI programs in 2025. However, not all financial institutions are following suit, due to some advantages their company has experienced in maintaining its DEI approach.Given years of research backing the benefits of diversity within organizations, particularly at the board level, it shouldn’t be surprising that many businesses are staying the course. Companies such as Apple, Costco, and Microsoft, along with financial institutions including JPMorgan Chase and Deutsche Bank, have publicly reaffirmed their commitment to diversity. In other cases, where businesses want to appear more in line with the government yet still see value in ongoing DEI initiatives, they are rebranding or renaming DEI initiatives. According to the findings of The Conference Board report, which uses data from Form-10k filings from 2025, the number of S&P 500 firms using the DEI acronym decreased by 68% compared to 2024. However, the same report found that the number of S&P 500 firms reporting board committee oversight of DEI has increased to 79%, up from 72%, demonstrating that diminishing external messaging about DEI is inconsistent with organizations’ continued embracing of diversity at the board level. “Diversity is still an important criterion in recruiting new directors, supporting effectiveness and board refreshment,” said Randy McGraw, vice president of Pearl Meyer, in a recent article about the company’s Bank Director Compensation and Governance Practices Survey. The survey found that 99% of organizations surveyed have an average of two women on their boards, and 95% have at least one board member of a racial or ethnic minority. How Continuing DEI Initiatives Impacts PerformanceResearch has long proven that organizations with strong DEI standards outperform their competitors. According to Diversity Wins: The Financial Impact of DEI, a 2024 study from McKinsey & Co., organizations with strong diversity at the executive level are 36% more likely to be more profitable than their peers. DEI also remains particularly important for community financial institutions (CFIs) within diverse communities, as customers in smaller or more segregated communities want to see financial options that reflect the communities that they are part of. One major factor is having bankers available who understand the area’s history, local culture, and values.What CFIs Can Do To Minimize RiskWhile some organizations may choose to discontinue DEI-related efforts altogether, others may find the issue more nuanced, particularly if DEI practices are already woven into their culture or community engagement strategies. How a CFI approaches DEI in the current environment will depend on its size, structure, and values — as long as that approach aligns with federal and local laws. Striking the right balance can be delicate. For those institutions choosing to stay the course, the focus may shift from whether to support DEI to how to do so responsibly and compliantly. Below are several steps experts recommend for CFIs seeking to preserve inclusive practices while minimizing legal and reputational risk in today’s legislative landscape:
- Review employee handbooks and new hire documentation. If you do have a DEI program and would like to maintain the spirit of the practice within your company culture, you might take a leaf out of larger companies’ books and find alternative language to use. Be sure to have a qualified attorney review any changes before distributing the updated documents.
- Reconsider your recruitment strategy. Part of DEI is tailoring where you’re posting open positions and where your CFI’s representatives are actively seeking talent to the demographics being sought. To ensure that your recruitment efforts aren’t violating any laws, the key is understanding what legal employment policies are for your state. For instance, while the recent executive order has mandated scaling back of DEI efforts at federal agencies, the Civil Rights Act of 1964 is still in place, which includes the Title VII provision prohibiting hiring decisions based on certain protected characteristics, like race or gender.
- Assess any workplace groups for exclusionary practices. Employee resource groups are meant to help employees in marginalized demographics feel included and heard by their coworkers. Some of these groups may inherently be closed to members who do not fit within the prescribed demographic. It’s important to review any literature or rules associated with these groups that exclude anyone from joining, and consider whether the group falls within other legal statutes. If not, your best protection is to make necessary changes based on legal advice from a firm with specialized knowledge in your state’s workplace discrimination laws.
- Prepare to address employee concerns. Regardless of whether your CFI prioritizes DEI practices, new and existing employees may have questions about what changes are coming in your company culture and how they could be impacted. Make sure your human resources department helps managers prepare to have these conversations by drafting FAQs with attorney-approved language. This will ensure that the message the concerned employees receive is consistent.
As DEI sentiment shifts at the federal level, CFIs should take a proactive approach to reviewing internal policies and practices to ensure continued compliance and alignment with their institutional values. CFIs choosing to maintain initiatives that support inclusion and opportunity can look to larger organizations’ playbooks for practical, compliant ways to sustain these efforts.
