DEI, ESG and the "Sheep" Label: Why Herd Thinking Is Not Leadership

Let’s be honest: there’s a quiet retreat happening.

The momentum around DEI (Diversity, Equity, and Inclusion) and ESG (Environmental, Social, and Governance) that surged in recent years is now being met with political resistance, media scrutiny, and corporate hesitation. Words are disappearing from filings. Targets are being “reviewed.” Initiatives are being renamed or dropped altogether.

And many organisations are looking at each other, then following suit.

In her recent post, Alison Taylor brilliantly calls it out: “Corporations move in herds.” And nowhere is that more evident than in the current wave of nervous back-pedalling. It’s as if some leaders have forgotten that true leadership means standing firm when it’s hardest — not when it’s convenient.

"The DEI backlash isn’t surprising. What’s disappointing is how easily so many organisations are dropping the baton."

How quickly we go from “people are our greatest asset” to “we don’t want to seem political.” From bold mission statements to softly erasing the language of equity and belonging. And what does that say to employees? To the next generation of leaders? To the communities companies claim to serve?

But not everyone is walking away.

In a true leadership piece, Daniela Barone Soares reminds us: “DEI targets may be gone, but that doesn’t mean the commitment is.” She’s right. We don’t need new acronyms we need renewed accountability. We need organisations that aren’t afraid to say: we believe in inclusive workplaces and sustainable practices because they are fundamentally the right thing to do and they deliver results.

As someone who has spent more than two decades in Financial services, working across people strategy, inclusion, sustainability, and talent, I’ve seen how powerful DEI and ESG can be when they’re treated as embedded, not performative. When they’re tied to behaviours, leadership development, career frameworks, governance, and culture, not just brand language.

Let’s be real: the current retreat is fear-based. It’s reactive, it’s being a sheep. It’s about avoiding discomfort legal, political, or otherwise. But that’s not strategy. And it’s definitely not leadership.

This moment calls for courage.

It calls for CHROs, CEOs, and people leaders to step out of the herd. To move from performative to purposeful. To build cultures where listening is ongoing, values are consistent, and inclusion is baked into decision-making not tacked on in annual reports.

If we step back now, what are we telling future talent? That inclusion is optional? That values change with the news cycle?

We can do better. People notice.

#DEI #ESG #Leadership #CultureStrategy #EmployeeExperience #Inclusion #Recruitment #PurposeDrivenWork #HRLeadership #EmployerBrand #StrategicPeopleLeadership

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