Regarding fostering fairness and inclusivity in the workplace, two timeless principles — common sense and the Golden Rule — may offer a stronger foundation than the bureaucratic, checkbox-driven approaches that have come to define many "woke" diversity, equity, and inclusion (DEI) policies.

These principles reject the overreach of performative mandates, instead championing fairness, respect, and accountability as tools to build stronger teams and better businesses. For leaders in the U.S. homebuilding and residential real estate industries, this is a moment not to abandon DEI entirely but to recalibrate and align these efforts with their fundamental purpose: creating workplaces that work for everyone, while driving innovation, resilience, and growth.

Now, it's news to no one. Our business community's leaders face mounting pressure to abandon commitments to DEI and environmental, social, and governance (ESG) initiatives.

These pressures have been compounded by shifting political winds, legal challenges, and widespread public discourse dismissing such efforts as "woke" or unnecessary. Yet, retreating from these commitments risks discarding the very principles that build more substantial, more resilient businesses — and a stronger, more united society.

As educator Lawrence Torcello points out, Americans share more common ground on critical issues than public discourse suggests. Perceived polarization often fuels distrust and division, threatening our ability to work together on shared goals.

For homebuilding leaders, the challenge isn’t just navigating external pressures; it’s about recognizing that the values underpinning DEI and ESG are fundamentally aligned with long-term business success and societal progress.

Shared Values, Misaligned Perceptions

Despite narratives of division, Americans frequently agree on key issues like the importance of fair workplaces, climate resilience, and access to opportunity. The success of DEI and ESG initiatives in the homebuilding industry reflects these shared values.

Companies like KB Home and Taylor Morrison Homes, recognized on Newsweek’s America’s Most Responsible Companies 2025 list, demonstrate that environmental stewardship, social responsibility, and good governance aren’t just nice-to-haves — they’re essential to attracting customers, investors, and top talent.

However, as Torcello highlights, a perception of division often outweighs the reality of consensus, leading to unnecessary conflict and missed opportunities. When homebuilding leaders retreat from DEI and ESG under pressure, they risk reinforcing this false polarization, eroding trust with stakeholders who value fairness and sustainability.

The Cost of Retrenchment

The backlash against DEI, fueled by figures like Edward Blum and Stephen Miller, has led some companies to scale back their programs, citing fears of legal challenges or public backlash. As Amber Cabral argues, the decline of DEI as we know it reflects the failure of certain models — models that relied too heavily on data dumps, guilt-based training, or poorly executed employee resource groups. Yet throwing out DEI altogether ignores the underlying need for inclusive workplaces and equitable opportunities.

As Torcello warns, this kind of retreat can undermine shared values and create deeper divisions. Research shows that Americans broadly support principles like equal protection under the law and efforts to address systemic challenges such as climate change and income inequality. Abandoning initiatives that align with these values risks alienating both employees and customers.

Moreover, retreating from DEI and ESG isn’t just a reputational risk — it’s a strategic one. Diverse teams have been shown to drive innovation and better decision-making, while sustainable practices reduce operational risks and enhance long-term profitability. Companies that abandon these principles may find themselves outpaced by competitors who embrace them.

Cabral writes that maybe letting DEI "rest in peace" is the best way forward. Still, she writes:

"there are a few things I do know for sure:

• Pretending salary gaps, race, gender, generational differences, disability, or microaggressions do not exist does not make them go away.  
• Ignoring destructive leadership behaviors and avoiding challenging discussions doesn’t stop workplace conflict and does affect development.  
• Narrow “culture fit” approaches to talent in a world that is growing more multicultural is a sure way to shrink a company’s talent pipeline — especially when considering the current generational wealth transfer.
• Folks will still be eager for workplaces where they can collaborate, connect, and do great work with the many identities that work there.  
• There are still copious amounts of data that show what Americans of all stripes think of their workplace experience, and leading in ways that pretend that doesn’t exist will not suddenly make workplaces “neutral,” regardless of what Mr. Starbuck and his billionaire friends tell you.

A Path Forward: Bridging Divides Through Shared Goals

Instead of abandoning DEI and ESG initiatives, homebuilding leaders should focus on recalibrating them to reflect shared values and business objectives. Here’s how:

1. Focus on Collaboration, Not Division: As Torcello suggests, emphasizing shared goals and community identity can help bridge divides. Homebuilders can lead by example, fostering workplaces where collaboration across diverse perspectives drives innovation and growth.
2. Reframe DEI as Leadership Development: The backlash against DEI often stems from misconceptions about its purpose. Amber Cabral suggests the term “DEI” may have outlived its usefulness. By reframing these efforts as investments in leadership, innovation, and talent development, companies can depoliticize the conversation and emphasize the practical benefits of inclusivity.
3. Strengthen ESG Commitments: Climate change poses significant risks to the housing industry, from rising insurance costs to the physical impacts of extreme weather. Companies that prioritize sustainability will mitigate these risks and attract environmentally conscious buyers and investors.
4. Recognize the Power of Perception: Torcello’s insights on the dangers of perceived division underscore the importance of transparent communication. By sharing measurable outcomes and aligning initiatives with business goals, companies can build trust with stakeholders across the spectrum.

The Role of Leadership

Leadership is about finding common ground, even in the face of disagreement. The homebuilding industry has a unique opportunity to demonstrate how shared values can drive innovation, resilience, and profitability. By doubling down on DEI and ESG as strategic imperatives, leaders can show that these commitments are not about pandering to trends—they’re about building stronger businesses and communities.

Torcello notes that focusing on shared values can help heal divisions and foster collaboration. For homebuilders, this means recognizing that DEI and ESG are not political liabilities but competitive advantages. Whether through sustainable building practices, inclusive workplaces, or community engagement, the industry has the tools to lead by example.

A Call to Action

The message to U.S. homebuilding and residential development leaders is clear: Don’t let perceived polarization dictate your strategy. Americans share more values than they realize, and the principles of fairness, sustainability, and inclusivity are central to both societal progress and business success. You can build homes and a stronger, more united future by recalibrating your efforts and emphasizing shared goals.

The marketplace rewards companies that align their actions with their principles. Now is not the time to retreat — it’s the time to lead. Props to team KB Home and team Taylor Morrison.