Kemi Badenoch has hit out at Britain's diversity drive, saying it has been "counterproductive" and "ineffective".
She warned that inclusion policies must not come at the expense of white men.
A report, commissioned by the Business Secretary, claimed that the majority of spending on equality, diversity and inclusion (EDI) was a waste of money.
It urges bosses to take into account disadvantages faced by the white working classes when modelling EDI schemes, warning against over-emphasising "visible" quotas.
Kemi Badenoch has hit out at Britain's diversity drive, saying it has been "counterproductive"
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Writing in the Telegraph, Badenoch said: "The new report shows that, while millions are being spent on these initiatives, many popular EDI practices – such as diversity training – have little to no tangible impact in increasing diversity or reducing prejudice.
"In fact, many practices have not only been proven to be ineffective, they have also been counterproductive.”
She added: "No group should ever be worse off because of companies’ diversity policies – whether that be black women, or white men...
"Performative gestures such as compulsory pronouns and rainbow lanyards are often a sign that organisations are struggling to demonstrate how they are being inclusive."
Badenoch, who also sits as the Minister for Women and Equality also slammed "snake oil" diversity schemes, demanding that equality strategies continue to uphold "fairness and meritocracy".
She accused some firms of having broken the law in their attempts at diversity by "censoring beliefs or discriminating against certain groups in favour of others".
Badenoch, who also sits as the Minister for Women and Equality also slammed "snake oil" diversity schemes
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Badenoch explained: "The report finds that, in some cases, employers are even inadvertently breaking the law under the guise of diversity and inclusion by censoring beliefs or discriminating against certain groups in favour of others.
“This Government believes that EDI policies should unite rather than alienate employees, and crucially uphold fairness and meritocracy."
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The report encourages firms to avoid diversity schemes which alienate certain groups, including the white working classes, cause division and have no impact.
It also says bosses should consider disadvantages the working classes may have faced when modelling their diversity schemes. It warns: "Employers must also consider less visible diversity, including socioeconomic and educational background."