It would likely be an understatement to say that the diversity, equity and inclusion landscape has changed over the last five years.

An explosion of funding and proliferation of anti-racism training gave way to a wave of corporate DEI rollbacks, with plenty of Fortune 500 companies leading the way.

Following President Donald Trump’s slew of anti-DEI executive orders affecting both the private and public sectors, management-side attorneys generally advised their clients to rely on Title VII of the Civil Rights Act to support their initiatives. In fact, HR’s top DEI priority in 2026 was making talent programs scrutiny-proof, according to experts.

But even for those employers committed to DEI as a value and confident in their program’s legality, a branding question remains: What’s at stake when a company conveys — or declines to convey — their DEI stance to the public?

Risks abound

Employers know they may face risk regardless of the DEI path they choose, attorneys have previously told HR Dive. Visible DEI commitments have some employers worried they may draw the Trump administration’s ire.

But without those commitments, employers are “less able to find the best person for the job and ensure that all employees are performing to their highest potential,” Emily Martin, chief program officer for National Women’s Law Center, told HR Dive via email.

“Even worse, abandoning these efforts makes unlawful harassment and discrimination more likely,” she added, saying that this talent approach could open up employers to increased risk of “legal liability, reputational damage, and the productivity losses that stem from toxic workplaces.”

Similarly, Aimee Peoples, VP for diversity, equity, inclusion and anti-racism at National Partnership for Women and Families, said that when companies step away from DEI, they’re stepping away from “protections that help women earn fair pay [and] stay safe from workplace harassment, access leadership opportunities, and balance caregiving with careers.” Peoples underscored that DEI helps veterans find civilian work and helps people with disabilities achieve equal access, as well.

A company’s reputation may suffer, too. The consumer reaction to a change in talent strategy from Target provides a concrete case study for HR professionals on the reputational risk of stepping back from DEI.

A case study in the Target boycott

Last year, during Black History Month, #BoycottTarget was trending in response to the retail giant’s highly publicized step back from inclusion. Initially, two organizing rights collectives called for a monthlong boycott of Target; it ultimately stretched more than a year due to outrage momentum. Cultural leader Rev. Jamal Bryant called for the end of the Target boycott in March citing productive conversations. Bryant did not respond to a request for comment.

While there were various factors at play, many business analysts have suggested Target boycott drove consumers away, leading to a fall in earnings and a decline in year-over-over foot traffic.

Read the full article here.