CoreNet Global’s CEO on Navigating DEI Strategy After Trump’s Executive Order

The White House executive order that eliminates diversity, equity and inclusion programs within the Federal government has a powerful impact on private entities, too. In the commercial real estate industry specifically, almost 96 percent of the firms had DEI policies and practices in place as of 2024, with more than half of them enacting formal strategies, according to a ULI report.

But, even before Trump’s election, many corporations were re-examining their DEI programs following the Supreme Court ruling blocking affirmative action at universities. Since Trump signed his executive order, that review has intensified. For example, a growing number of companies are dropping the “E” from their “DEI” programs because it is difficult to define and or they want to avoid criticism. JP Morgan last week announced it is replacing the “E” with an “O” for “opportunity.”

We asked Core Net Global CEO Scott Wiley to tell us how CoreNet Global members feel about the Federal directive on DEI. As head of a global organization of corporate real estate professionals with more than 10,000 members, Wiley has been an advisor to executives around the world on multiple issues, including DEI strategies.

First, let’s clarify what diversity and inclusivity are all about.

Wiley: Diversity and inclusivity are about creating environments where everyone feels valued, respected and empowered to contribute their best. It’s about implementing the right policies and practices that ensure equal opportunities and foster a sense of belonging. Good leadership is integral to this process, as leaders set the tone for an inclusive culture by modeling inclusive behaviors, addressing biases and championing diversity initiatives.

We believe that inclusive organizations attract more investment, more talent and create more opportunities. They foster human connection. This new era is about creating human connection, not less.

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Research has shown that diversity in business fosters innovation, improves the bottom line and even helps with recruitment. Where have you seen its impacts in the real estate industry?

Wiley: In the corporate real estate industry, embracing diversity leads to more innovative solutions and smarter decisions. Teams with varied backgrounds bring fresh perspectives that help spot emerging market trends and unique client needs. For example, a diverse team can better understand and address the preferences of different demographic groups, leading to more effective property development strategies, like designing inclusive workspaces that reflect various cultural needs and preferences.  

Additionally, diverse teams can boost property management by implementing sustainability initiatives that appeal to a wider range of tenants, such as energy-efficient building designs and green certifications. This not only enhances customer satisfaction but also strengthens the company’s competitive edge. Plus, a commitment to diversity attracts top talent who seek inclusive and dynamic workplaces, driving the company’s growth and success.

So how do the latest anti-DEI federal directives impact corporate cultures?

Wiley: The latest executive orders present challenges, but we are unwavering in our commitment to support our global industry and its stakeholders to find intentional ways to bring people and purpose together to transform work. We are actively collaborating with our global stakeholders and executives worldwide to navigate this environment without stepping back from our leadership position. These directives may create obstacles, but they also reinforce the importance of our mission to foster inclusive workplaces where diverse perspectives drive innovation and success.

How have your members reacted to the recent disruption to diversity programs?

Wiley: CoreNet Global members have demonstrated resilience and a steadfast commitment to creating welcoming and inclusive work environments for all. Our members understand that diversity and inclusion are not just values, but strategic imperatives. They continue to invest in these programs, recognizing that an inclusive workplace is essential for attracting and retaining top talent, fostering collaboration and enhancing overall business performance. We stand united in our belief that diverse teams deliver bigger impacts and create more opportunities.

Some large corporations have already announced plans to scale back on DEI efforts, both in internal programs and public-facing mentions of DEI. What signal does this send to the employment market?

Wiley: Businesses need to reflect the communities they work in and with, and the markets they serve or seek to engage. Anything that impedes that sends a concerning signal to the employment market, suggesting a lack of commitment to their corporate culture and stated values. However, corporate real estate leaders are responding by strengthening their commitments and initiatives. They recognize that inclusive environments are crucial for fostering innovation and maintaining a competitive edge.

In a global workforce facing a skilled worker shortage estimated at 85 million people in less than five years, our industry welcomes and celebrates diverse perspectives, backgrounds and cultures because we recognize that rather than divide us, they best define us and the value we provide to our companies worldwide.

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Are there any legal risks for corporate employers implementing DEI programs in light of the latest developments? What steps should they take to ensure their existing DEI initiatives comply with the law?

Wiley: Yes, there are legal risks associated with implementing these programs, particularly if they are perceived to provide preferential treatment based on race, gender or other protected characteristics. Employers should ensure all their initiatives comply with federal and state anti-discrimination laws by avoiding explicit preferences and focusing on creating equal opportunities for all employees.

Regularly reviewing and updating corporate policies, providing training on unconscious bias and seeking legal counsel can help mitigate these risks. CoreNet Global is committed to helping our members navigate these complexities while maintaining their commitments to their workers and shareholders.

What are some actionable steps that corporate real estate leaders can take if they want to continue to have a lawful, diverse, equitable and inclusive work environment?

Wiley: Corporate real estate leaders can take several actionable steps to foster workplace inclusivity: conduct internal assessments to get a clear picture of the current state of diversity and pinpoint areas for improvement; implement unbiased hiring practices to ensure everyone has an equal shot at opportunities; provide diversity and inclusion training to help employees understand unconscious bias and cultural sensitivity.

They can also create employee resource groups to support underrepresented groups and build a sense of community; encourage open communication and feedback to keep improving and adapting; ensure diversity in leadership roles to reflect the diverse workforce and provide role models for all employees; promote inclusive policies and practices that support work-life balance such as flexible working hours and parental leave; celebrate cultural events and milestones to foster a sense of belonging and appreciation for diverse backgrounds.

These steps can help create a more welcoming and inclusive workplace, ensuring compliance with legal requirements and enhancing overall business performance.

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