Australian employers cut back on diversity and inclusion programs amid US ‘anti-woke’ backlash | Business

New research shows Australia’s leading employers are scaling back their diversity, equity and inclusion (DEI) programs, with a handful scrapping initiatives altogether amid a US-led “anti-woke” backlash.

Some businesses have also canceled their memberships with Pride in Diversity (PID), Australia’s leading workplace inclusion organisation.

A new report by PID found that, according to a survey of 92 senior leaders, including board members and executives, one in 10 executives say their businesses have backed away from DEI policies or abandoned programs altogether.

Leaders of major organizations discussed the response anonymously with PID director Dawn Emsen-Hough. National Speaking report.

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“What started internationally as targeted opposition to trans inclusion quickly turned into resistance to LGBTQ+ inclusion in the workplace [and] a broader anti-woke campaign,” Emsen-Hough said.

“These currents are no longer distant, they are felt in Australia.”

Executives said Donald Trump had “opened the floodgates” globally as he singled out and rolled back DEI measures and encouraged Australians to challenge local engagement measures.

Leaders said the tone of their programs alienated workers, especially those who did not belong to minority groups, leading to the use of derogatory language and opposition to company policy.

“The language we used crossed the line: white, pale, stale male – very judgmental,” one manager said.

Here are the results of PID’s employee survey, the Australian Workplace Equality Index: Australians’ share is decreasing While – three in four – supported LGBTQ+ inclusion efforts in their workplaces, straight white men often felt left out.

Increasing hostility in public discourse led one company to stop running transgender inclusion training due to fear of gender diverse staff, the report said.

PID boss and former David Jones chief executive Paul Zahra said the retreat was misguided and could deter people from coming out as LGBTQ at work or at home.

“Organizations are retreating [are] Responding to imported culture war narratives that do not reflect Australian workplace realities,” Zahra said.

Zahra said that PID member organizations were subjected to negative campaigns and some of them ended their partnerships.

The program currently involves around 500 major employers, including ASX200 companies, leading law and accounting firms, government agencies, universities and not-for-profit organisations, as well as the big four banks.

International reaction

Participation programs have declined internationally after Trump’s victory, after US companies scrapped DEI measures and some multinationals in Australia said they faced increasing overseas pressure to minimize their efforts to participate in PID.

“If the US sees it, we will have to remove the word diversity from presentations,” one executive said.

Major Australian companies have quietly signaled that the emphasis on DEI will decrease through 2025. Commonwealth Bank, Macquarie Bank and miner BHP were among those reducing references to their efforts in annual reports.

The report said most Australian companies tried to avoid backlash by softening language and expanding participation programs rather than rescinding the measures.

Deloitte Australia director Pip Dexter said the company remained committed to its diversity and gender equality targets despite its US counterpart rescinding DEI measures.

PwC Australia CEO Kevin Burrowes said inclusion measures were crucial to the firm’s success and were popular with its young, diverse and vocal workforce.

“It would be foolish to back away from that in any way because the result would be us being less successful at serving our customers,” Burrowes said.

He said the firm has shifted its focus to ensuring that majority groups do not feel excluded; this is symbolized by the planned renaming of the “diversity and inclusion” program to “inclusion and diversity.”

“We want to make sure that everyone feels included, and if it’s young white men or older white men that we want to hire…we want them to feel like they can act fairly.”