Edition 24-003 | 23-May-2024

Diversity, equity, and Inclusion (DEI) has evolved from addressing overt discrimination in the workplace to promoting diversity as a business imperative and, more recently, to a holistic approach that encompasses equity, inclusion, and belonging. While progress has been made, ongoing efforts are needed to create truly diverse, equitable, and inclusive workplaces and societies.  More recently, the current political landscape in America presents additional challenges and controversies surrounding DEI.  In this edition, we explore what’s next for Diversity, Equity and Inclusion (DEI).

The Evolution of DEI

The history of diversity, equity, and inclusion (DEI) in the United States can be traced back to the civil rights movement of the 1960s, which aimed to end racial discrimination and promote equal rights for all. Some Key Milestones:

⦁    Civil Rights Movement (1960s)

The civil rights movement of the 1960s laid the foundation for DEI efforts. Landmark legislation such as the Civil Rights Act of 1964 and the Voting Rights Act of 1965 prohibited discrimination based on race, color, religion, sex, or national origin and aimed to ensure equal rights and opportunities for all citizens.

⦁    Affirmative Action (1960s-1970s)

In the late 1960s and 1970s, affirmative action policies were introduced to promote equal employment opportunities and increase representation of underrepresented groups in the workforce. These policies aimed to address historical discrimination and create a more diverse and inclusive workplace.

⦁    Diversity Initiatives (1980s-1990s)

In the 1980s and 1990s, corporations began to recognize the business benefits of a diverse workforce and started implementing diversity initiatives. The focus shifted from legal compliance to leveraging diversity as a competitive advantage.

⦁    Equity and Inclusion (2000s-present)

While diversity efforts increased representation, there was a growing recognition that equity and inclusion were also crucial for creating an environment where all employees could thrive. The focus expanded to include not just representation but also fair treatment, equal opportunities, and a sense of belonging for all employees, regardless of their background or identity.

⦁    Renewed Momentum (2010s-present)

In recent years, social movements like #MeToo and Black Lives Matter, as well as increased awareness of systemic racism and inequalities, have reignited the DEI conversation. Companies and organizations have placed a renewed emphasis on DEI efforts, with a focus on accountability, transparency, and measurable progress.

New Emphasis Chisels Away at Partisan Divide

With a new mandate and emphasis, DEI initiatives have become a contentious political issue in the United States, with conservatives and liberals holding opposing views on their necessity and implementation.  Conservative politicians and groups have mounted attacks against DEI efforts, arguing that they promote discrimination against certain groups and amount to “reverse racism” or “reverse discrimination.”  This opposition has manifested in various ways:

⦁    Florida Governor Ron DeSantis spearheaded efforts to restrict DEI initiatives in the state, including prohibiting state funding for programs that “advocate for diversity, equity, and inclusion” or “promote or engage in political or social activism.” He views DEI as an “indoctrinating” program. 

⦁    Texas Governor Greg Abbott instructed state agencies that DEI initiatives are illegal, claiming they “expressly favor some demographic groups to the detriment of others” and “proactively encourage discrimination in the workplace.” 

⦁    The Supreme Court’s 2022 decision to ban race-conscious admissions in higher education has emboldened conservative groups to file lawsuits challenging DEI efforts in corporations, arguing they amount to discrimination. 

On the other hand, liberals and progressives view DEI initiatives as necessary to address systemic inequalities and promote equal opportunities for historically marginalized groups. They argue that DEI initiatives do not discriminate but rather level the playing field and provide equal opportunities for all, regardless of background. Key arguments in support of DEI include:

⦁    DEI efforts aim to create a more representative workforce and leadership that reflects the diversity of the nation, leading to better decision-making and policies that serve all communities. 

⦁    Numerous studies have shown that inclusive and diverse workplaces are more productive, innovative, and profitable over time. 

⦁    DEI initiatives increase political efficacy and voter participation by making underrepresented groups feel their voices are heard and can effect meaningful change. 

⦁    The federal government, as the nation’s largest employer, should model excellence in DEI to promote equity and serve all American communities effectively. 

So, What’s Next for DEI

The political divide over DEI reflects deeper ideological differences regarding the role of government in addressing societal inequalities and the extent to which systemic barriers exist for certain groups.  As the debate intensifies, the future of DEI efforts in various sectors remains uncertain and subject to ongoing legal and political battles.  However, research suggests that most companies plan to continue their DEI efforts, albeit with some adjustments and rebranding. Here are some key points about the future of DEI initiatives:

⦁    Companies Remain Committed to DEI Principles

Despite the backlash, surveys show that most business leaders still consider DEI initiatives critical for improving business performance, attracting talent, and fostering creativity.  A Morning Consult survey found that 82% of executives think diversity initiatives are vital to their strategies, and 67% expect these efforts to become more important in the future.  Additionally, it found that 75% of executives who described themselves as politically conservative said diversity initiatives are essential to their business strategy.

The findings contradict the assertion by some that diversity is inherently a partisan topic.

⦁    Rebranding and Quieter Approach

While companies may not abandon DEI entirely, some are adopting a quieter approach or rebranding their efforts to avoid controversy.  They may drop the “DEI” terminology, discuss their work less openly, or avoid publicizing financial commitments to these initiatives.

⦁    Focus on Attracting Diverse Talent

A 2023 Conference Board survey of Chief HR Officers (CHRO’s) revealed that none of the survey participants planned to scale back their future DEI initiatives, and that nearly two-thirds expect to focus their efforts on attracting and hiring diverse employees, suggesting a shift in emphasis from training and culture change to recruitment and hiring practices.  The survey highlights that companies recognize the business value of DEI efforts and are doubling down on them, even in the face of legal challenges and investor pushback.

⦁    Continued Resistance and Polarization

At the same time, a significant portion of employees perceive DEI policies as divisive, leading to avoidance of co-workers with differing political beliefs.  This polarization within the workforce will likely continue to pose challenges for implementing DEI initiatives effectively.  

In summary, while DEI initiatives face increasing political headwinds, most companies recognize their importance for business success and plan to continue these efforts, albeit with a potentially lower profile and a greater emphasis on diverse hiring.   However, workplace polarization over DEI policies remains a significant obstacle to overcome.