A Rocky Year for DEI - How Companies Should Respond
2023 has been a rough year for Diversity, Equity, and Inclusion (DEI) efforts. Of course, much of what has occurred is playing out in a politically divided environment where corporate diversity practices are the subject of frequent social media firestorms.
I am currently providing DEI consulting to companies, teaching a "Diversity & Inclusion at Work" course at UC Irvine business school, and just 3 weeks ago, spoke at the LA Times "Diversity, Equity, Inclusion, & Accessibility" leadership forum.So, I've seen these changes first-hand.
Here's a recap of what has occurred this year:
On June 29, the Supreme Court declared affirmative action unconstitutional in Students for Fair Admissions, Inc. vs. Harvard University and The University of North Carolina, banning race in the college admission process.
As a result of this decision, attorneys general in 13 Republican-led states took aggressive action by sending letters to the CEOs of the top 100 companies in their states warning that labels of DEI are now "unlawful and wrong, per SCOTUS".
More than 30 anti-DEI bills have been introduced at the state and local levels targeting DEI funding, practices, and promotion at schools.
Companies including Netflix, Disney, and Warner Bros. Discovery have recently said that high-profile DEI executives will be leaving their jobs. Thousands of diversity-focused workers have been laid off since last year, and some companies are scaling back racial justice commitments.
Some companies have reallocated their DEI budgets to "Health Equity" to shift their focus more broadly and back away from DEI labels. Other companies have changed the title of their CDOs to "Title VII Compliance Officer". And some have done away with DEI metrics, quotas and goals altogether.
What's the Data Show?
Here’s a great Harvard Business Review article that speaks to the SCOTUS decision, anti-DEI bills, and actions by attorneys general. It also gives some suggestions about recruitment, onboarding, performance reviews, pay, promotions, and communication.
Why Companies Can — and Should — Recommit to DEI in the Wakeof the SCOTUS Decision (HBR, 7/27/23)
Here's an interesting article from the Wall Street Journal that shows that two years ago, chief diversity officers were some of the hottest hires into executive ranks. Now, they increasingly feel left out in the cold.
The Rise and Fall of the Chief Diversity Officer (WSJ, July21, 2023).
In addition to the above actions, we know that racial tensions in the U.S. remain high due to rising hate crimes and several incidents involving aggressive policing.
Of course, DEI focuses on more than just race/ethnicity. It also includes gender, age, disability, LGBTQ, religion/culture, socio-economic status, and other diverse characteristics of individuals.
The overall goal of DEI is to help create a society (and world) that acknowledges and transforms the beliefs, practices, and systems that disadvantage and disempower so many people. And, to help put practices in place so that all employees feel engaged and included, and companies can innovate, compete, and thrive.
However, in the current environment, many people feel confused and fearful - and companies are considering whether to pull back on DEI.
Are DEI Practices Legal?
Employment falls under Title VII and is enforced by the U.S. Equal Employment Opportunity Commission (EEOC), currently led by Charlotte Burrows, who emphasized that the SCOTUS decision has no bearing on its work. In a statement she said, “It remains lawful for employers to implement DEI programs that seek to ensure workers of all backgrounds are afforded equal opportunity in the workplace.”
Robin Ely, faculty chair of the Harvard Business School Race, Gender & Equity Initiative, says "For companies to retreat from their commitments to advancing equity and diversity would be profoundly shortsighted. Yet even so, it’s also important to affirm that we don’t need an economic rationale to recognize the dignity of others nor the importance of eradicating the discrimination and bias that harm many and diminish the collective humanity of us all."
A 2023 Benevity survey found that 95% of people weigh a prospective employer’s DEI efforts when choosing between job offers with similar salary and benefits - and that 78% would NOT consider working for acompany that fails to commit significant resources to DEI initiatives. Employees from historically marginalized backgrounds will almost certainly feel disregarded and devalued if their organizations shy away from DEI labels.
Quotas, Metrics and Goals
Lily Zheng, DEI author and strategist, says it’s important to distinguish between DEI quotas and goals. "Many companies may make pledges to boost their representation of various groups. For example, this could look like a pledge to increase the percentage of Black employees in leadership roles by 20% over 5 years." Data and metrics can help cement your vision and help track your DEI strategy to measure whether your workplace is becoming more inclusive.
Such goals (presented with or without specific time frames) remain legally defensible and can be instrumental in maintaining a company’s image of a healthy environment. Thus, these targets are safe to make and can be good for organizations.
Parting Thoughts
Here's what I want to leave you with.
DEI is a stew. Adding garlic, nutmeg, and cumin doesn't take away from the salt that's already in the stew. The ingredients add flavor and color to the mix.
DEI efforts ultimately enhance the workplace for everyone.
Instead of giving in to fear of legal exposure or pressure to step back from diversity commitments, corporate leaders should clarify their values around DEI, communicate their goals widely, and ensure their people management processes are aligned with them.
In my consultation work, I help companies focus on their hiring practices, policies, education & training, communication, employee networks, leadership involvement, and accountability.
If you are interested in helping your company become more diverse, equitable, and inclusive, please don’t hesitate to reach out.
Dr. Shawn
Want to learn more? Check out my website drshawnandrews.com or bestselling book, The Power of Perception: Leadership, Emotional Intelligence, and the Gender Divide
