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Navigating the current national cultural landscape in the United States as a Latino professional is not easy. It feels like I am walking a tightrope between my heritage and the expectations of a myopic version of America. This often leaves me feeling the weight of being one of the few Latinos in leadership positions. It is even more painful as I witness how my Hispanic immigrant community—who make up a significant portion of the US workforce (about 48 percent)—struggle for fair opportunities and equitable treatment amid the current sociopolitical rhetoric.
As Latina/o executives, we know firsthand that diversity, equity, inclusion, and belonging (DEIB) efforts are not simply theoretical exercises or political statements. They impact real people—employees, customers, and communities. It is well known that the Hispanic community in the United States has experienced substantial growth, now making up nearly 20 percent of the population, with increasing influence in politics, business, and culture.
Yet, despite the clear benefits of fostering inclusive workplaces, some companies are now scaling back their commitments, citing financial pressures, shifting political climates, or fearing backlash. However, history and research show that withdrawing from DEIB has significant financial and cultural consequences.
The movements that shaped today’s DEIB efforts have deep roots in the civil rights era, gained traction in corporate America in the 1990s and 2000s, and again after the murder of George Floyd in 2020, and have more recently been challenged by political polarization.
But one fundamental truth remains: DEIB work is not about pushing an agenda—it’s about helping people thrive (as my life’s tagline would say).
“DEIB work is not about pushing an agenda—it’s about helping people thrive.”
Norlan Hernández Blandón
A Brief History of DEIB Policies and Social Justice Movements
The idea of social justice, which undergirds the concept of what we know as DEIB, can be found as early as the eighteenth century with the work of a Jesuit Priest named Luigi Taparelli d’Azeglio. He used the term social justice in his 1843 work, A Theory of Natural Law. Fast forward to today: over the last five decades, the landscape of DEIB has evolved significantly.
Today’s DEIB efforts trace back to the Civil Rights Act of 1964, which prohibited discrimination based on race, color, religion, sex, or national origin. This led to affirmative action policies in the 1970s and 1980s, aimed at correcting systemic inequities in education and employment. By the 1990s, corporations began to recognize the business case for diversity, launching initiatives to recruit and retain diverse talent.
The early 2000s saw DEI strategies expand beyond representation, incorporating workplace inclusion efforts, cultural competency training, and supplier diversity programs. The #MeToo (2010s) and Black Lives Matter (2020s) movements pushed companies to address systemic inequities more explicitly. In response, many organizations pledged to improve racial and gender equity, increase transparency in pay and hiring practices, and foster more inclusive cultures.
Yet, in recent months, some companies have reversed course, citing economic downturns or pressure from political groups arguing that DEIB initiatives create division rather than unity. The argument that diversity programs serve a political agenda rather than a business imperative has led some organizations to scale back their commitments.
However, the data suggests that companies that abandon DEIB efforts risk more than just reputational damage. They also face financial setbacks.
The Financial Impact of Withdrawing DEIB Initiatives
Amidst the current rhetoric around DEIB, we need to be reminded that reducing or eliminating DEIB initiatives can have severe financial consequences for organizations. Several studies confirm that diverse and inclusive workplaces outperform their less inclusive counterparts across multiple metrics, from profitability to innovation. As the 2024 Latino Donor Collaborative GDP Report reminds us, “the total economic output (GDP) of US Latinos was $3.6 trillion” in 2022.
1. Talent Retention and Turnover Costs
A 2023 study by McKinsey & Company found that companies in the top quartile for diversity are 36 percent more likely to financially outperform those in the bottom quartile. Inclusive organizations have higher employee engagement, lower turnover rates, and stronger employer brands. Conversely, when companies scale back DEIB initiatives, they risk alienating employees—particularly younger workers and underrepresented groups—leading to increased turnover and associated costs. The Society for Human Resource Management (SHRM) estimates that replacing an employee can cost up to twice their annual salary.
2. Impact on Brand and Customer Loyalty
Consumers are increasingly values-driven, particularly among Latino and millennial buyers. A 2022 Nielsen report found that 49 percent of Hispanic consumers prefer to support brands that reflect and respect their cultural values. Companies that roll back DEIB commitments risk losing market share as customers seek alternatives that align with their values. This is particularly crucial for industries like retail, technology, and entertainment, where brand reputation directly affects revenue.
3. Innovation and Market Competitiveness
A study by Boston Consulting Group found that companies with diverse leadership teams reported innovation revenue that was 19 percent points higher than organizations with below-average leadership diversity. Diverse teams bring varied perspectives, which fosters creativity and problem-solving—essential factors in a rapidly changing economy. When organizations pull back from DEIB initiatives, they risk creating echo chambers that stifle innovation and leave them vulnerable to disruption by more forward-thinking competitors.
4. Investor and Regulatory Risks
Many institutional investors now consider environmental, social, and governance (ESG) factors, including DEIB metrics, when making investment decisions. A report by Bloomberg estimated that ESG assets could surpass $50 trillion by 2025. Companies that deprioritize DEIB may find themselves excluded from investment portfolios, reducing access to capital. Additionally, regulatory bodies are increasingly scrutinizing diversity efforts, with some jurisdictions requiring disclosure on workforce demographics and pay equity. Scaling back DEIB efforts could expose companies to legal risks and penalties.
“Our leadership is instrumental in demonstrating that investing in people—regardless of race, gender, or background—leads to better outcomes for everyone.”
Norlan Hernández Blandón
A Call to Action for Latino Executives
As Latina and Latino professionals, we must champion DEIB not just as a moral obligation, but as a business imperative. Our leadership is instrumental in demonstrating that investing in people—regardless of race, gender, or background—leads to better outcomes for everyone.
I personally know the power of opportunity because I have lived it. Many of us have navigated industries where few leaders looked like us. We have seen how mentorship, sponsorship, and inclusion can change career trajectories. By advocating for DEIB, we ensure that the next generation of Latino professionals doesn’t have to fight the same battles we did.
So, what can we do?
- Hold our organizations accountable. Whether in the boardroom or on the frontlines, we must ensure that DEIB remains a business priority, not just a corporate buzzword.
- Invest in the next generation. Mentorship and sponsorship are critical. We must open doors for the next wave of Latino professionals, ensuring that they have the support to succeed.
- Align DEIB with business outcomes. We must articulate the business case for DEIB in financial terms, demonstrating how inclusion directly contributes to profitability, innovation, and customer loyalty.
- Advocate for supplier diversity. Supporting Latino-owned businesses and vendors strengthens both our community and our economy.
- Stay engaged. DEIB work is ongoing. We must remain informed, involved, and proactive in shaping workplace policies that benefit everyone.
DEIB is not about political ideology; it is about helping people thrive. Companies that recognize this truth will continue to thrive, while those that turn their backs on inclusion will struggle to keep pace. As Latino executives, we have the responsibility and the power to ensure that DEIB remains a force for good, fostering workplaces where talent is recognized, valued, and empowered to drive success.
When organizations invest in people, they invest in their own future. That is a principle that transcends political trends, and it is one we must continue to uphold.
Norlan Hernández Blandón is a proud Nica/Nicoya—terms used to describe someone with Nicaraguan roots. He is the proud father to Aella Mia and husband to Isabel.
He is the associate provost for engagement and inclusive teaching and learning (aka chief diversity officer) at Fresno Pacific University. He is also CEO and lead consultant at Empowerfy Consulting LLC and the founder and president of Faithful Teachings Inc.
His previous roles include leading the Jesse Miranda Center for Hispanic Leadership at Vanguard University, leading a corporate training department that served an international audience. He has also led a team of higher education professionals who pioneered institutional efforts in creating an infrastructure to support fully online undergraduate and graduate students.
He holds a BA in liberal studies with an emphasis on culture and society from California State Los Angeles, an MA in theology from Fuller Theological Seminary, and a PhD in intercultural studies from Biola’s Cook School of Intercultural Studies. He is currently pursuing an Executive MBA at the Paul Merage School of Business at the University of California, Irvine (UCI). His research interests include Latin American identity, theology, leadership, justice, and DEI.
