DEI is at an inflection point. For decades, Diversity, Equity & Inclusion (DEI) initiatives have aimed to promote diverse representation, fairness and belonging for all individuals, with gender equality as a key component.
However, recent trends in the United States show companies scaling back these efforts, following the Supreme Court’s 2023 ruling which declared affirmative action programmes at universities (i.e. programmes designed to improve opportunities for historically marginalised groups) unconstitutional. Whilst this decision did not directly impact private companies, it has prompted many companies to reconsider, adjust or even wind back their DEI efforts.
There is ongoing debate as to whether this shift marks the end of DEI or if its core concepts will be reframed, rebranded or integrated into other functions.
What is most concerning are the accompanying changes in attitudes. For example, Meta, alongside ending its DEI initiatives, has made sweeping changes to its hateful conduct policies and third-party fact checking. This will allow harmful, demeaning language on platforms, posing risks to women and marginalised groups. These changes mirror shifts in the broader American landscape, with the close of all governmental DEI programmes and proposed changes to gender identity and references across the country with potential far-reaching ramifications.
So what does this mean for DEI and gender equality here in Asia?
By contrast, Asia is making strides towards more equitable societies and building foundations from which DEI can flourish – particularly with regards to gender equality.
Just last year, Thailand passed landmark legislation to recognise same sex marriage, following on from Taiwan’s 2019 marriage equality legislation, with promising developments in Japanese courts. Singapore has made steady progress - improving women’s workforce participation, narrowing the gender pay gap and enhancing anti sexual violence measures. Mainland China has strengthened laws to protect women from discrimination and we are seeing record numbers of female presidents among the country’s listed companies.
Here in Hong Kong, in a world first, Hong Kong Exchanges and Clearing (HKEX) has mandated the end of single gender boards and fostered a framework to advance gender equality in the workplace.
The benefits of DEI are clear. A decade of research by McKinsey has shown that companies with gender diverse executive teams financially outperform their non diverse peers – by as much as 39%. Diverse teams make better decisions, inclusive teams perform 30% better, and 76% of employees say that working at an equitable, inclusive and diverse workplace is important to them.
At TWF, we believe that ensuring individuals of all genders, identities and backgrounds feel seen and valued is a cornerstone of inclusive leadership – this is why our Pipeline Initiatives and Young Allies Programme focus on equipping participants with these essential tools and mindset. We recognise that meaningful change takes time - this is why we meet organisations where they are in their DEI journey and foster critical discussions from multiple perspectives.
Make no mistake – embracing DEI efforts will not be a panacea for solving challenges posed by our ageing population, falling fertility rates, economic uncertainty and systemic inequalities. But it is a necessary ingredient to effectively addressing any one of these issues.
It’s time for Hong Kong to build on our foundations and reap the benefits of diverse, equitable and inclusive workplaces and communities. Let’s accelerate our efforts and position Hong Kong as a global leader in DEI and gender equality.