Why Companies Must Take Responsibility for Diversity and Democracy
Many companies still view diversity primarily through an economic lens. In doing so, they underestimate their role in society and for democracy. An appeal on the occasion of German Diversity Day.
In the business world, it has long been considered common knowledge that valuing and managing diversity contributes to corporate success. Diverse teams tend to develop better and more creative solutions. A diverse workforce understands a broad customer base and is better positioned to tap into new markets. Diversity also signals social responsibility and can therefore enhance a company’s public reputation. The study most often cited in this context is by McKinsey & Company, which found, for example, that diverse teams drive innovation that can lead to 19 percent higher revenues.
Against this backdrop, it is understandable that companies often approach diversity management as a business case, implementing it in a calculated and economically rational way. This is entirely legitimate. What is often overlooked, however, is the following: companies have long become more than just market actors. They are central spaces for social participation, interaction, and integration. Work structures daily life, shapes identity, and opens up networks. For many people, the workplace is the primary site of social participation – and for migrants, people with disabilities, single parents, or employees from non-academic backgrounds, it is often the key gateway to advancement and recognition. Diversity in the workplace is therefore not just an internal matter; it is a form of social infrastructure.
An inclusive corporate culture matters for democracy
Fulfilling this societal role – beyond quarterly figures and business performance – is more urgent than it has been in years. Something is shifting in our society. Democracy is under pressure, disagreements over how to address current challenges are eroding social cohesion, and new divisions are emerging. According to the Robert Bosch Stiftung’s Diversity Barometer 2025, only 24 percent of respondents believe that policymakers are capable of addressing the challenges of the future. Combined with a decline in trust in freedom of expression, this creates a dangerous dynamic. In addition, 51 percent of respondents feel that the needs of minorities are given greater priority than the well-being of the majority.
Against this backdrop, “wokeness” – originally a positive term denoting awareness of diversity and a commitment to equal opportunity – has become a political buzzword used as a term of derision. This shift is not only affecting public debate but also shaping people’s attitudes and perceptions. The Diversity Barometer shows that societal acceptance of diversity has declined: after reaching 68 out of 100 points in 2019, it dropped to 63 points in 2025. At the same time, fewer people see diversity as an enrichment to society – down from 63 percent in 2019 to just 45 percent in 2025, now a minority. This is problematic, as diversity, social cohesion, and societal resilience are closely interconnected.
As acceptance of diversity declines and polarization increases, the responsibility of institutions that shape everyday life grows. Companies are among them. They set norms: how people communicate, how decisions are made, how conflicts are handled, and how fairness is upheld. Especially in the current climate, an inclusive corporate culture is highly relevant for democracy. If companies want to be spaces that foster both diversity and democratic values – and they should – they must meet three fundamental conditions.
From symbolism to substance – even in the face of resistance
First, diversity management must not be treated as a campaign but taken seriously. Real impact is achieved where companies act structurally: with clear goals, measurable progress, and genuine accountability. This includes transparent recruitment and promotion processes, measures to counter unconscious bias, and targeted support for underrepresented groups through mentoring, sponsorship, and inclusive leadership. Strengthening LGBTQ+ employees is part of this; “pinkwashing” as a superficial marketing tool is not. Diversity is a social reality. DEI in companies is therefore not an add-on – it is organizational development and a contribution to social cohesion. Cutting back on diversity weakens not only innovation but also social unity.
Second, companies must develop a degree of resilience toward political pressure and public opinion – in other words, they must not be swayed by every passing trend. Admittedly, the environment has not improved. In the United States, President Donald Trump signed an executive order a year ago targeting corporate diversity and inclusion initiatives. As a result, several prominent U.S. companies have scaled back or discontinued their programs. German companies are also closely watching these developments, mindful not to jeopardize their U.S. business over what may appear to be a peripheral issue like diversity.
“Companies wield not only economic but also moral power – and they express it through their stance.”
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For companies, economic success comes first – understandably so, and rightly part of their mandate. Only economically robust companies can secure jobs in the long term, providing people with their livelihoods. It is therefore legitimate to debate the pros and cons of diversity. However, the consequence must not be that values and long-term convictions are dictated by erratic political decisions and shifting social sentiment. Companies wield not only economic but also moral power – and they express it through their stance.
Companies as places where democracy is lived
This leads to the third requirement: companies must see themselves as actors in democracy. At a time when political parties are losing their binding force and union membership is declining, the workplace is becoming a central space for opinion formation and dialogue. For many people, it is also one of the few places where they move beyond their self-selected filter bubbles. If companies recognize this reality, they can become active contributors to democracy and social cohesion. The Business Council for Democracy is a strong example: this initiative, bringing together civil society, companies, unions, and associations, offers employees voluntary training in democratic skills directly in the workplace.
The workplace is more than a place to earn a living. It is also a school of life and a potential space for learning: a place where differences must be endured, diversity embraced, and democratic values practiced. Employers should use this leverage and contribute to social cohesion and a resilient democracy. Companies bear responsibility – as employers, as role models, and as shapers of society. Of course, companies cannot reverse current trends on their own. But they can decide whether they want to be part of the problem – or part of the solution.
The author of this article, Dr. Ferdinand Mirbach, is a Senior Expert on the Democracy team, with a focus on integration and diversity, and serves as Diversity Officer at our foundation.