With the changes in DEI last year, Michelle discusses what the landscape of DEI looksl ike in 2026, and how the widespread confusion and fear surrounding legal changes has impacted business decisions. She talks about how most DEI initiatives remain lawful despite the uncertainty. Leaders are urged not to adopt a wait and see approach or pull back too aggressively, as such tactics risk alienating employees and shareholders, damaging organizational reputation, and forfeiting opportunities for growth and innovation.

She also outlines a six-dimensional framework for balancing risk and reward in DEI strategy, touching on financial, legal, regulatory, employee, social, and shareholder perspectives. She highlights the rising employee demand for inclusion and belonging, the costs of retention and disengagement, and the risks posed by reputational setbacks. She closes with actionable advice: recalibrate your strategy by focusing on engagement and inclusion, even if you change the terminology, and leverage available resources to navigate the current climate without abandoning the foundational principles of DEI.