Despite facing significant political and social backlash, businesses remain committed to their diversity, equity, and inclusion (DEI) initiatives, according to a recent survey. The study, conducted by the Association of Corporate Citizenship Professionals and YourCause from Blackbaud, surveyed DEI professionals in 125 major companies. It found that an overwhelming 96% of these professionals reported that their company’s DEI commitments have either remained consistent (83%) or increased (13%).
The Steadfast Corporate Commitment to DEI
This unwavering support for DEI initiatives is notable given the increased scrutiny and quieter communication surrounding these efforts. Nearly one-third of executives stated that they now describe their DEI work differently, and 17% indicated they discuss DEI efforts less with external parties. Additionally, 33% of respondents noted heightened scrutiny or legal reviews of DEI-related programs. Carolyn Berkowitz, President and CEO of the Association of Corporate Citizenship Professionals, emphasized that the survey results demonstrate that the current political climate has not diminished corporate support for DEI.
Understanding the Backlash Against DEI
The backlash against DEI programs has been growing, particularly since the racial reckonings of 2020 and 2021. The Supreme Court’s decision to overturn affirmative action in college admissions has further fueled scrutiny and legal challenges from figures like former Trump administration official Stephen Miller and anti-affirmative-action activist Edward Blum. High-profile critics like Elon Musk and Bill Ackman have also labeled DEI efforts as “racist.”
Pressure campaigns have led some companies to modify their DEI strategies. For example, John Deere, a Fortune 500 company, faced backlash over its diversity hiring targets and support for LGBTQ+ events, prompting the company to audit its policies and withdraw from external social or cultural awareness events. Similarly, Tractor Supply, another Fortune 500 firm, reduced its DEI and climate goals following sustained external pressure.
Political Implications and Corporate Reactions
The political landscape could undergo significant changes if former President Donald Trump, who has promised to dismantle “woke equity” programs, wins the 2024 election. During his previous tenure, Trump issued an executive order banning DEI training for federal employees and contractors, which President Joe Biden later rescinded. Since then, conservative-led states have introduced numerous bills aiming to restrict DEI efforts in various sectors, including education and state government.
Republican Senator J.D. Vance of Ohio, Trump’s running mate, recently introduced the “Dismantle DEI Act,” seeking to end all federal DEI programs and funding for government agencies and contractors that maintain DEI initiatives.
Business Leaders’ Stance on DEI
Publicly, business leaders continue to voice their commitment to DEI. However, internally, they are reassessing DEI investments and distancing themselves from initiatives that might be perceived as contentious, such as hiring targets based on diversity. Some companies have broadened fellowship and internship opportunities to include all applicants, moving away from exclusively targeting underrepresented groups. Additionally, mentions of diversity goals in shareholder reports are becoming less common, with some companies even listing DEI as a “risk factor” in regulatory filings.
The Society for Human Resource Management (SHRM) recently announced that it would drop the term “equity” from its DEI efforts, opting instead for “inclusion and diversity” (I&D). SHRM’s CEO Johnny C. Taylor Jr. indicated that the organization would prioritize inclusion moving forward.
The Future of DEI in Corporate America
Despite the challenges, many corporations remain dedicated to their DEI initiatives. According to Bridge Partners’ Diversity, Equity, and Inclusion Barometer, nearly three-quarters of executives plan to expand their DEI programs in the next two years, while only 4% expect to reduce or eliminate them. These executives cite the benefits of DEI on recruitment, hiring, retention, and public reputation as primary motivators.
Another survey by employment law firm Littler Mendelson found that 91% of executives still prioritize DEI, and 57% have expanded their efforts. Joelle Emerson, co-founder and CEO of diversity strategy firm Paradigm, noted that while anti-diversity rhetoric has had a chilling effect, most companies continue their DEI work, albeit less vocally.
The Impact of DEI Initiatives
The evolving thinking and language around DEI in the workplace have sparked fears that the small workforce and leadership gains made in recent years could stall. Historic advantages have helped white people—especially men—dominate the business world, creating wide gaps in status, pay, and wealth. A USA TODAY investigation of the nation’s largest companies found that the top ranks are predominantly white and male, while women and people of color are concentrated at the lowest levels with less pay, fewer perks, and limited opportunities for advancement.
Despite criticism of DEI initiatives, there is growing evidence that corporations continue to embrace them. Nearly three-quarters of executives surveyed by Bridge Partners’ Diversity, Equity and Inclusion Barometer expect to build their DEI programs in the next 24 months while only 4% say they will cut back or eliminate them. The executives cited the benefits of DEI on recruiting, hiring and retention (94%) and the reputational boost with the public (74%).
By and large, they said the political climate has not had much impact on their DEI commitments, with 53% of executives saying it has had no impact and 47% saying it had a small impact, Bridge Partners found. A survey from employment law firm Littler Mendelson had similar findings: 91% of executives said they are still prioritizing diversity, equity and inclusion and 57% said they had expanded their efforts.
More organizations are committed to diversity now than they were before George Floyd died under a white officer’s knee, Joelle Emerson, co-founder and CEO of diversity strategy and consulting firm Paradigm, told USA TODAY in May. “While the anti-diversity rhetoric has had an overall chilling effect and certainly gave companies who never really valued diversity, equity, and inclusion cover to pull back on their efforts, we’re actually seeing most companies are continuing their work, just less vocally,” Emerson said.
Conclusion
In conclusion, while political and social pressures pose challenges to DEI initiatives, the corporate commitment to fostering diverse and inclusive workplaces remains resilient. Companies are adapting their strategies and communications but are not retreating from their core DEI commitments, recognizing the long-term benefits these programs offer to their workforce and overall business success. Despite the anti-woke backlash and increased scrutiny, businesses understand that DEI initiatives are crucial for maintaining a competitive edge in recruitment, retention, and public reputation. As the political landscape continues to evolve, it is evident that DEI will remain a significant focus for forward-thinking companies.