Canadian HR leaders are staying committed to DEI – but some organizations have given in to the pressure
As the United States dismantles federal diversity, equity and inclusion (DEI) programs at speed and threatens organizations who continue to run them, Canadian employers are navigating unfamiliar territory – a political climate that has partly crossed the border, leading to pressure on their own DEI programs that are a normal part of workplace culture.
The contrast is stark. In the US, President Donald Trump's executive orders in early 2025 directed sweeping restrictions on DEI across the federal government and private sector. His campaign against DEI has continued, more recently banning DEI practices by federal contractors and subcontractors in March 2026. As a result of this crackdown, major corporations – Meta, Amazon, Target, Google and others – have scaled back or eliminated diversity programs entirely.
Jennifer Maki, National Manager of Human Resources at Hyundai Auto Canada in Markham, Ont. – whose organization won an award for excellence in diversity and inclusion at the 2023 Canadian HR Awards – says the company has not wavered.
“We have stayed true to our DEI programs and initiatives and remain committed to that space,” says Maki. “Diversity, equity, and inclusion are part of the foundation of who we are and our culture.”
Staying authentic in a shifting DEI climate
Maki acknowledges the pressure from across the border but is direct about Hyundai Canada's position and her approach to DEI. “It's about inclusion and everybody bringing their true selves to work,” she says. “Different ideas and diversity just bring innovation, and we haven't lost sight of that in Canada.”
The sentiment is shared at Surrey, BC-based Westland Insurance Group, where the organization has resisted backlash against its robust DEI program that includes multiple employee resource groups led by executives. “Every once in a while we have a client – it's a rare circumstance – who maybe doesn't like a pride sticker on our branch, for example,” says Keri Fraser, Westland’s Chief People Officer. “But we're very committed, and we’ll risk losing that client rather than not having a space that's inclusive.”
That resolve is reflected more broadly in the Canadian workforce, according to a study released in August 2025 by the Future Skills Centre (FSC), the Environics Institute for Survey Research, and the Diversity Institute at Toronto Metropolitan University called Equity, Diversity and Inclusion Backlash? The survey of 5,603 Canadians found that 54 per cent of Canadian workers view equity, diversity, and inclusion (EDI) efforts in the workplace positively, while only 16 per cent view them negatively. Nearly half of respondents – 47 per cent – said their employer's approach to EDI was having a positive impact on their work opportunities.
The report also found that 68 per cent of workers believe their employer either gives EDI the right level of attention or should give more, while one-quarter said EDI gets too much. For organizations tracking Canada's evolving HR landscape, the numbers offer a counterweight to what has become a louder, if not larger, opposition.
The quiet retreat: rebranding DEI
Not every Canadian organization has held as steady as Hyundai. In January 2025, the University of Alberta announced it would move away from the EDI framework and language, replacing it with a new term: access, community and belonging. University president Bill Flanagan cited concerns that DEI language had become polarizing for some, representing what he described as an ideological bias at odds with merit. The university followed this up in early 2026 by proposing changes to its hiring rules that would remove DEI language and practices.
In Canada, law firm McCarthy Tétrault paused a specialized hiring program for Black and Indigenous law students, with the Chief Inclusion Officer leaving the company shortly after the pause, while tech giant Shopify disbanded its dedicated diversity team, provoking public condemnation from hundreds of Canadian tech leaders.
When it comes to the practice of rebranding DEI under terms like “belonging,” “talent strategy,” or “community,” Maki says it’s not the way her organization chooses to respond to pressure from south of the border. "We've stayed true to what we've committed to and haven't used language as a way to change our approach,” she says. “In Canada, we're unique and we have our own approach – for us, we're just continuing to be authentic in terms of how we treat DEI and its importance.”
“We haven't made any changes and we haven't taken away budget – [DEI] has just continued to grow and have support,” says Fraser.
Canada's legal framework protects DEI commitments
The Canadian legal landscape provides a meaningful buffer that US-operating companies don’t have. Canada's Charter of Rights and Freedoms, the Canadian Human Rights Act, and provincial employment standards and human rights codes create both protections and obligations for employers. This means that organizations increase legal, financial, and reputational risk by backsliding on EDI commitments.
The legal risk of retreat isn’t hypothetical. The Canadian Securities Administrators paused proposed changes to DEI disclosure requirements in April 2025 “to support Canadian markets and issuers as they adapt to the recent developments in the US and globally,” according to a news release. The Osler 2025 Diversity Disclosure Practices report found that the proportion of Canadian issuers reporting on whether they considered the representation of women in making executive officer appointments declined “sharply” by nearly eight per cent compared to the prior year, while companies disclosing whether or not they have a written policy relating to the appointment of women dropped by more than five per cent.
The legal landscape also reflects the way DEI is more embedded in the cultural fabric of Canada – and also within organizations, according to Lola Obomighie, Vice President People, Culture and Organizational Effectiveness at Northumberland Hills Hospital in Cobourg, Ont. “If you hardwire something into the fabric of the organization, then it’s difficult to take out,” says Obomighie. “As we've seen in recent years, where funding for these roles is starting to scale back, there's nothing to scale back because there's no role – It's embedded in everyone's role.”
The business case for DEI
The FSC research makes the long-term strategic case for DEI. By 2041, racialized individuals are projected to make up between 42 and 47 per cent of the working-age population in Canada, compared to 23 per cent in 2016. One-third of small Canadian businesses report trouble finding workers, with nearly half saying the talent shortage worsened due to the pandemic. According to Statistics Canada, Canada’s population decreased in the first quarter of 2026, the third consecutive quarter in which that happened, following an annual decrease in 2025 – meaning the labour market may also be shrinking. The business case for inclusive hiring – expanding the talent pool, responding to a diversifying market, driving innovation – has not weakened.
For HR professionals navigating DEI strategy amid cross-border pressures, the task isn’t simply holding the line. It’s making the case, clearly and with evidence, to organizational leaders who may be watching US developments nervously.
The approach of many Canadian organizations reflects what the FSC data shows many Canadian employees still believe: the pressure to retreat may be there, but so is the foundation that makes retreat both unnecessary and risky.
“If the senior leadership sees it as a priority, it remains a priority,” says Obomighie
