At a time where there is a major tension between the integrity of corporate America and pressure from the broader political landscape, WPS Health Solutions ended its formal diversity, equity and inclusion programs.
Despite this cut, WPS President and CEO Wendy Perkins remains adamant that, despite the DEI label disappearing, the company’s core values remain.
Based on company statements, employees will still be treated like the DEI programs are in place, even though the programs were stripped to fulfill the direct order from the Trump administration — who continues to target federal contractors.
Perkins was vocal about wanting to involve employees in how the company ensures wellness, emphasizing flexibility and compassion, according to The Cap Times. While these are great steps in theory, and while Perkins has a positive history of valuing well-being, it begs the question of whether a company can truly remain inclusive if they don’t outwardly address systemic problems. If the language surrounding progress is slashed, can it survive?
This singular case has much broader implications for the future of the relationship between corporate leaders and moral integrity. WPS should be understood as a test of whether or not companies will stand strong and committed to their principles or standards even when the political climate turns against them. So far, WPS is struggling to find a fair resolution.
Failing to acknowledge historical exclusion and focusing only on current inclusion creates empty promises. Furthermore, failing to name the structures that perpetuate inequity is performative.
When a company eliminates DEI programs — both the terminology and the frameworks — it risks reducing inclusion to a vague ideal, rather than a concrete commitment to action and dismantling barriers for marginalized employees.
Removing the frameworks that measure and assess inequality also sends a crystal-clear message that equity is negotiable when it becomes difficult.
Admittedly, WPS is in a challenging position regarding its future. It is a major contractor for benefits administered to military members and Medicare participants, which means it relies mostly on federal funding, according to The Cap Times.
As the Trump administration continues to try and dismantle DEI, they are creating difficult choices for companies like WPS. These companies have to choose between their employees and company culture or in many cases, losing important contracts and even jobs.
From this perspective, WPS’ decision can make sense, but this ultimatum should not exist in the first place. It speaks to a broader concern about how broken the whole system currently is. Penalizing workplaces that prioritize diversity and equity — and using business relationships to pressure them into compliance — is unjust.
But, companies are not completely powerless and are able to innovate solutions. They can reframe their DEI initiatives to both legally comply with federal regulations while still maintaining their ethics.
Embedding the principles of DEI under programs that promote company culture, employee wellness and leadership development are all options that don’t fully take away from the original meaning. WPS has moved slightly toward this reformation with their focus on resource groups, but to be truly meaningful, they must actively center equity at the core.
There is a danger in removing language, because words matter. Titles and names provide a sense of structure or direction and accountability to uphold core values.
Without explicitly naming “diversity” it runs the risk of ambiguity and ignoring the distribution of equal opportunity. Without “equity” mistaking equality for general fairness becomes more of a possibility, ignoring that what’s fair isn’t always equal in a historical context. Without “inclusion” passive tolerance is more likely to surpass the idea of active belonging.
Stripping DEI in both name and intent ushers in a new culture centered around ignorance, where those disproportionately burdened with obstacles aren’t given the tools and resources they need to succeed.
It also sends the message to employees that their identities and right to justice are not as important as the businesses’ monetary challenges. This is a time when leaders have to make a decision about what matters.
Are they subservient to shareholder value, bending at the first sign of political challenge, or are they supporters of an ethical workplace which innovates under pressure and reforms to match their values, no matter the cost?
For WPS, they must go beyond just the cloaked assurances of company values. They must actively create a new framework which supports the substance of DEI initiatives. They should continue to collect information on equitable pay, representation, promotion rates, and overall employee experience.
Progress demands courage, and that courage is needed from institutions now. WPS has a great opportunity to set the tone for how other businesses will navigate a hostile political climate. They can show their employees and clients that values can never be banned, and that even if labels are stripped, their spirit lives on boldly and unwaveringly.
