Targeting the “moveable middle” for more successful D&I change (Online)

Backlash Meets Regulation

In late 2025, major Australian companies including Commonwealth Bank, Macquarie Bank, and BHP began toning down references to diversity, equity, and inclusion in their reporting, part of a broader quiet retreat from DEI initiatives. This shift mirrors a US-led 'anti-woke' movement but arrives in Australia just as regulatory pressures intensify.

From April 2026, many employers will face mandatory gender equality target-setting and reporting under expanded legislation, moving voluntary best practice into enforceable obligations. Failure to comply could bring penalties, public scrutiny, and talent retention issues in a competitive labor market.

The focus on the 'moveable middle' arises from segmentation studies, notably Plan International Australia's Gender Compass research released in 2025. It identifies a substantial group open to gender equality arguments despite widespread misconceptions—60% of Australians believe the country is close to or has achieved equality, clashing with data on the gender pay gap, discrimination, and women's underrepresentation in leadership.

This perception gap fuels resistance: opposition to workplace inclusion efforts has grown, with some surveys showing declining support and pockets of resentment, particularly among younger men. Yet the same data highlights opportunity—targeting persuadable segments through evidence-based engagement can build broader coalitions without alienating skeptics.

Tensions emerge between compliance-driven corporate responses and grassroots pushback. While some organisations rebrand or broaden inclusion efforts to avoid controversy, others confront rising discrimination reports, including against LGBTIQ+ workers as noted in early 2025-2026 Inclusion@Work Index findings. The non-obvious trade-off lies in balancing regulatory mandates against cultural fatigue: aggressive pushes risk backlash, but retreat invites legal and ethical risks in an environment where inclusion increasingly ties to workplace safety and productivity.