The pursuit of equity in education and employment has been a disputed yet vital aspect of societal progress. Affirmative action helps address this by fighting discrimination and promoting diversity and inclusion. It increases opportunities for historically underrepresented groups in education or employment. However, in 2023, the US Supreme Court ruled against affirmative action in college admissions, sparking controversy in corporate America over the legality of DEI programs. Although the ruling only applies to college admissions specifically, legal experts warn that it might mean companies will face legal challenges for their inclusive hiring policies and practices.
Credit: Mathieu Landretti, CC BY-SA 4.0, via Wikimedia Commons
Opponents of DEI: Who Is Leading the Charge?
Elon Musk has criticized DEI as racist and sexist, emboldening anti-DEI activists like Robby Starbuck, who has publicly pressured companies to abandon DEI in favor of a less “woke” America. A few American household names including Lowe’s, John Deere, Walmart, and Ford have scaled back on their DEI commitments in response to social pressure and potential legal challenges, according to the New York Times.
DEI critics like Musk and Starbuck favor merit, excellence, and intelligence (MEI) over DEI, ignoring the fact that systemic barriers hinder equal access to opportunities that showcase merit. As Fortune aptly explains, DEI is essential for fostering MEI by leveling the playing field and promoting workplace fairness.
Companies’ Failure to Commit Long Term
Appreciation for diversity, equity, and inclusion has always existed in modern society in some form or another. However, DEI’s popularity surged in 2020 after the highly televised deaths of George Floyd and Breonna Taylor. During the uproar against racially-charged police brutality and anti-blackness, major companies announced that they were committed to protecting the interests of their black employees by implementing robust company-wide DEI policies and creating safe spaces for them. Today, only a few years later, Google, Zoom, and Uber, among others, have already begun minimizing their DEI departments. They have dissolved key DEI roles creating gaps in ERG leadership, and remarketed their DEI programs by softening the language or removing the E for equity entirely.
Credit: Anthony Quintano, CC BY 2.0 via Flickr
Because DEI gained traction in 2020 and brought these companies good publicity, it was convenient for them to make promises. Wells Fargo, one of the major companies that recommitted to DEI in 2020 and claims to still value DEI policies highly, conducted sham interviews recently with female applicants and applicants of color. However, it was revealed that Wells Fargo never hired any of those candidates. It’s likely these interviews were solely for PR, not any real commitment to DEI principles. Critics suggest that the companies that have turned their backs on DEI never had a strong enough culture of inclusivity to sustain them in the first place.
High Performing Companies Maintain and Expand DEI Strategies
Conversely, several other Fortune 500 Companies, including JPMorgan, Chase, and MasterCard, refuse to back down from their positions on DEI despite also being targeted by right-wing activist groups. Their C-suite executives have explicitly stated that DEI policies remain in the best interest of their companies as well as investors.
This cultural shift is very recent, occurring only a few months ago, so the impact of dissolving corporate DEI departments is uncertain. However, pulling back on DEI initiatives could lead to long-term ethical and financial consequences, especially since consumer cohorts with significant buying power often prioritize DEI in their purchasing decisions.
Corporate America cannot afford to turn its back on DEI at a time like this. The business landscape is growing, and as it grows, companies that fairly hire diverse employees by giving them an equitable chance in the recruitment process will reap the rewards of retention, satisfaction, and higher ROI. There is top talent in diversity. Excluding or minimizing the rich experiences of black people, people of color, disabled people, the LGBTQ+ community, women, or immigrants will only lead to losses for all parties.
Stay connected on your DEI journey with Learning Cycle. Explore our workshops and success stories to empower your team.
