Diversity, Equity, and Inclusion (“DEI”) is making headlines again – this time in response to significant rollbacks in the U.S., where the federal government and several major employers are stepping away from policies designed to promote equal rights and equity programs.
While public backlash has been significant and some corporations have pushed back against this rollback, many other workplaces are either winding down their internal DEI programs and initiatives, or rebranding them altogether.
So, what does this shift mean for Canadian workplaces?
What is DEI?
The term Diversity, Equity, and Inclusion (DEI) refers to the various frameworks that an organization may use to support and promote the fair treatment of all people, regardless of background or personal characteristics.
Within a given company, “DEI” can refer to a set of resources for employees that identify as members of marginalized groups, such as women, people of colour, people with disabilities, or 2SLGBTQIA+ people. It can also refer to specific policies that the company has put in place to promote equal rights, such as:
- Inclusive hiring practices
- Reasonable accommodations for people with disabilities
- Internal learning and development programs
- Policies around the reporting and resolution of discrimination against staff members
These initiatives are typically led by HR or people and culture teams and are aimed at building more inclusive, respectful, and high-performing workplaces.
What’s happening in the U.S.?
On January 20, 2025, the Trump administration issued an executive order directing federal departments to terminate all DEI-related programs and policies. The order described such programs as “discriminatory,” stating that “[t]he Director of the Office of Management and Budget (OMB), assisted by the Attorney General and the Director of the Office of Personnel Management (OPM), shall coordinate the termination of all discriminatory programs, including allegedly illegal DEI and “diversity, equity, inclusion, and accessibility” (DEIA) mandates, policies, programs, preferences, and activities in the Federal Government, under whatever name they appear.”
While this statement applied to DEI policies in government programs, many high-profile companies such as Target, Walmart, and McDonald’s elected to mirror the spirit and impact of the order by cancelling or rolling back their own internal DEI policies and frameworks. These details have varied by company, but may include:
- Budget reductions for certain areas
- Removal of DEI resources from company intranets
- Elimination of roles responsible for DEI strategy
With this said, not all companies are following suit. Organizations like Apple, Costco, and Coca-Cola, have opted to maintain their internal DEI programs despite pressure from government regulators.
The exact impact of these changes on the labour landscape in the United States is difficult to quantify, especially in these early days. While some DEI can cover specific roles and company policies, many are woven into company culture through staff-organized or peer-to-peer support systems, making them more resilient and harder to eliminate completely.
What is the current landscape in Canada?
As in the United States, there is no specific law that requires Canadian companies to have DEI policies in place. However, Canadian companies do have a legal obligation to ensure that employees are not being discriminated against based on protected characteristics, per provincial human rights legislation (such as the B.C. Human Rights Code) and the federal counterpart (the Canadian Human Rights Act). Protected characteristics include race, religion, gender or gender expression, age, mental or physical disability, and sexual orientation.
Canada has not experienced the same widespread pushback against DEI as the U.S., but shifting political and cultural attitudes could still have an impact.
What should employers keep in mind?
Naturally, there is overlap between DEI policies and human rights laws as they apply to the workplace. Many organizations lean on DEI policies and initiatives to help ensure that employees are being treated equally and to provide continued opportunities for employee engagement, learning, and development as cultural attitudes shift and opportunities for improving equity arise. These policies reduce the likelihood of discrimination complaints, strengthen team dynamics, and contribute to a positive workplace reputation.
We at Ascent are hopeful that Canadian organizations will continue to view DEI as an essential part of doing business and fostering a vibrant, multifaceted workforce. While the business case is clear, so too is the reduced potential for human rights complaints and discrimination issues.
If you have questions about DEI from an employer’s perspective, or need advice on developing your organization’s policies and strategy, please contact us – we’re here to help!
