Diversity, Equity and Inclusion

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DEI backlash hits corporate America

Illustration: Annelise Capossela/Axios

U.S. companies' diversity, equity and inclusion efforts lost momentum this year after the Supreme Court's June affirmative action ruling, Axios' Emily Peck writes from a DEI consulting firm's new report. Why it matters: The slowdown is a reversal from the explosion in corporate DEI after George Floyd's killing in 2020 pushed companies to act to address racial inequality. "2023 has undeniably shifted the DEI landscape for years to come," write the authors of a report out today from Paradigm. "External forces are no longer pushing companies to invest in DEI; instead, in some cases, external forces are pushing back on companies' investment in DEI." 💨 Catch up fast: In June the Supreme Court struck down affirmative action at colleges — ruling that schools can't explicitly consider race in the admissions process. Since then, the group that brought that case — American Alliance for Equal Rights — sued two law firms, challenging minority fellowships that were open only to students of color, those who identify as LGBTQ+ or those who have disabilities. The group also sued a venture capital fund, the Fearless Fund, for investing solely in Black women. In response, the law firms revised the programs, broadening their criteria to all law students at a certain stage of school. The suits were dropped. Another major law firm, which had not been sued, proactively changed its fellowship. In a letter this summer, 13 Republican state attorneys general urged Fortune 100 companies to take another look at their DEI programs after the high court's decision. The lawsuits and letters "will have significant downstream consequences for DEI for years to come," Paradigm's report concludes. Paradigm also says companies have deprioritized DEI as the hiring frenzy of the past few years has slowed. Reality check: DEI efforts after 2020 had real impact. 94% of the headcount increase at large firms in 2021, from the previous year, stemmed from hiring people of color, according to a Bloomberg analysis of 88 S&P 100 firms. Explore the report ...

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Anti-DEI movement expands

Illustration: Natalie Peeples/Axios

The backlash over diversity, equity and inclusion programs (DEI) is sharpening in politics, business and academics, Axios' Erica Pandey reports. Why it matters: Diversity programs are being cut in business, pummeled by Republicans in politics and ridiculed in academics where donors have pulled millions. "I'm seeing a new trend," said Joelle Emerson, CEO of the DEI consulting firm Paradigm. "Those critiquing DEI aren't just the extreme, right-wing anti-progress activists." "They're also liberal-leaning people who are likely values-aligned with DEI in principle, but confused and misguided about what the work looks like in practice." 🖼️ The big picture: College DEI programs support historically underrepresented students and faculty members, including people of color, people with disabilities and veterans. Critics have argued for years that these programs make universities overly sensitive to only certain groups. They leapt to make that connection after university presidents hedged when asked how they'd respond to antisemitism on campus. In corporate America, DEI efforts lost momentum this year after a Supreme Court affirmative action ruling in June. "2023 has undeniably shifted the DEI landscape for years to come," Paradigm said in a report last month. What's happening: Billionaire hedge fund manager and Harvard alumnus Bill Ackman wrote an open letter to his alma mater calling for Claudine Gay to resign as president, and said the university's DEI office was a "major contributing source of discriminatory practices on campus." Gay's job is safe, Harvard's board said yesterday. Stacy Burdett, an antisemitism expert and former vice president of the Anti-Defamation League, said: "It's a reality that traditional DEI has not been inclusive enough of antisemitism and it's urgent to address the gaps." "The racial justice movement as we know it may not have imagined the need to support and protect a group of mostly white people who are targeted by hate crimes and identity-based harassment," she said. But she added that "the culture war against diversity, and efforts to turn DEI into a bogeyman don't make Jewish people safer. That's simply playing on Jewish fear to score political points." Flashback: Three years ago, after George Floyd's killing and the ensuing protests threw the lack of diversity at colleges and companies into the spotlight, universities were raking in funds to establish new DEI programs. Institutions, including Brown and UT Dallas, raised funds to increase accessibility, support DEI research and hire faculty. A slew of colleges around the country, including the University of Minnesota and Penn State, established new scholarships to support students from underrepresented backgrounds. 👓 What to watch: Bills to defund DEI efforts at public colleges or limit or ban identity-based faculty hiring have been proposed in 20 states this year.

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💼 Companies back away from "DEI"

Illustration: Annelise Capossela/Axios

Laudable goals like achieving "equity" and "diversity" and making people feel "included" have become weaponized terms, Axios' prolific Emily Peck reports. Why it matters: The year ahead will be pivotal for corporate diversity efforts, as attacks against DEI — diversity, equity and inclusion — will likely intensify. But for many employers, maintaining a diverse workforce where employees feel included is a key part of attracting and retaining workers. 💨 Catch up fast: It's been a long, strange trip for corporate diversity efforts — which can range from employee resource groups to anti-bias training to hiring programs. For years, DEI was criticized as corporate window dressing or for being counterproductive. More recently, conservative politicians and pundits have made DEI a target, with new laws limiting its practice cropping up in Florida and Texas. DEI funding and staffing stalled last year after a two-year boom in the wake of the protests that followed the murder of George Floyd in 2020. 🔭 Zoom out: The Supreme Court's decision last year overturning the use of affirmative action in universities has drawn attention to corporate diversity efforts. Businesses are trying to avoid any programs that could draw legal scrutiny: Goals around hiring particular demographic groups are increasingly frowned upon. "Anything that smacks of a quota" is out, said Diana Scott, Human Capital Center Leader at The Conference Board. At the same time, many business leaders say they're still committed to diversity. In a survey of chief human resource officers recently conducted by The Conference Board, zero respondents said they were planning to scale back DEI in 2024. State of play: This all means that the way DEI happens inside companies is changing. Some firms, including Blackstone, are focusing on hiring for socioeconomic diversity, and on changing job requirements to find more diverse talent without targeting race or ethnicity, Fortune reports. And businesses are pulling back from the DEI term. The focus is on moving away from "those three words" towards "well-being and inclusion," said Scott, the Conference Board official. 🔮 What's next: "Companies are really starting to look at other ways to do the work without saying that they're doing the work," said Cinnamon Clark, cofounder of Goodwork Sustainability, a DEI consulting firm. Businesses likely will be talking more about "employee experience" or "wellness," which falls under the inclusion bucket, said Clark.

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📊 Execs still committed to DEI

Illustration: Maura Losch/Axios

Executives remain committed to DEI — diversity, equity and inclusion — despite a rising backlash, Axios' Emily Peck writes from a survey out today from the employment law firm Littler. Why it matters: The results come as anti-DEI noise gets louder. But these programs have become an important part of employee relations and talent strategies for companies, Littler points out. 🔢 By the numbers: 57% of 322 U.S. execs surveyed by Littler in November said their organizations have expanded DEI programs over the past year. 36% maintained them. At the same time, 59% of execs — a mix of chief legal officers, chief diversity officers, chief people officers and other C-suiters — said they believe backlash has increased since the Supreme Court's June decision that race couldn't be used as an explicit factor in university admissions. 💨 Catch up fast: The court's ruling wasn't about employers. But companies grew anxious that any programs that take race into account would be vulnerable to litigation. Since then, activists have filed so-called reverse discrimination lawsuits against law firms for their minority fellowship programs. What's happening: For the most part, instead of panicking and getting rid of programs, companies are auditing their initiatives to ensure there are no legal risks, Littler's Jeanine Conley Daves says. 🕶️ What to watch: The moniker DEI itself. Littler uses the term IE&D — inclusion, equity and diversity — to reflect its prioritization of inclusion. We wouldn't be surprised to see more companies move away from the old term, too.

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As diversity, equity and inclusion comes under legal attack, companies quietly alter their programs

NEW YORK (AP) — Sophia Danner-Okotie’s has ambitious plans for her Nigerian-inspired clothing line but a sense of dread has punctured her optimism as she watches a legal battle being waged against a small venture capital firm that has provided funding instrumental to her boutique brand’s growth.

https://apnews.com/article/dei-diversity-corporations-affirmative-action-309864f08e6ec63a45d18ca5f25d7540?

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📚 Mapped: Anti-DEI bills surge

Data: National Conference of State Legislatures. Map: Axios Visuals Proposals aimed at dismantling diversity, equity and inclusion programs on college campuses have surged since 2021, Axios' Russell Contreras reports. Bills have been introduced in 21 states since 2021. Nine have approved such laws. Why it matters: The wave of anti-DEI bills in state legislatures has come amid an ongoing conservative backlash against initiatives aimed at fighting systemic racism. Just two states — Washington and New Mexico — have passed bills since 2022 requiring higher education institutions to offer training in DEI or antiracism.

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NAACP urges student-athletes to reconsider Florida colleges after state eliminates DEI programs

GAINESVILLE — Black student-athletes should reconsider attending public colleges and universities in Florida, the NAACP said in a letter to NCAA President Charlie Baker on Monday.

https://www.orlandosentinel.com/2024/03/11/naacp-urges-student-athletes-to-reconsider-florida-colleges-after-state-eliminates-dei-programs/?

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Should college essays touch on race? Some feel the affirmative action ruling leaves them no choice

CHICAGO (AP) — When she started writing her college essay, Hillary Amofa told the story she thought admissions offices wanted to hear. About being the daughter of immigrants from Ghana and growing up in a small apartment in Chicago. About hardship and struggle.

https://apnews.com/article/college-application-affirmative-action-f0c006a6210ab244c1b6b4c2b1926b6d?

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Inside DEI's fall

Data: AlphaSense. Chart: Axios Visuals Diversity, equity and inclusion (DEI) was the hot thing in corporate America a few years ago. Now the business world barely mentions it, Axios' Emily Peck writes. Why it matters: The business community — long averse to political risk — backed away from DEI programs over the past two years after attacks from lawmakers, high-profile rich guys and conservative activists. Other companies are sticking with these efforts but doing it quietly. Many business leaders are fed-up with DEI, Johnny Taylor, president of the Society for Human Resource Management told Axios. "The backlash is real," he said. "CEOs are literally putting the brakes on this DE&I work that was running strong" since George Floyd's murder in May 2020. 🔎 Zoom in: Some businesses are cutting back funding, trimming DEI staff and even considering pulling back on employee resource groups comprised of various races, ethnicities or interests. Others are changing programs designed to support women and people of color because of lawsuits. America First Legal, founded by former Trump aide Stephen Miller, has filed more than 20. 🥊 Reality check: There are still companies committed to hiring people from diverse backgrounds, figuring out how to foster inclusive workplaces and treating people fairly. But they're less likely to use those initials. Same with ESG — environmental, social and governance.

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UT-Dallas lays off DEI staff

Illustration: Allie Carl/Axios

UT Dallas is the latest Texas public university to lay off staff due to the new law barring diversity, equity and inclusion programs at state institutions. Why it matters: Texas is one of at least nine states to pass legislation limiting or prohibiting DEI programs on college campuses. Anti-DEI bills have been introduced in 21 states since 2021. State of play: Senate Bill 17, which took effect in January, bars public universities from maintaining offices or programs dedicated to supporting historically underrepresented groups, such as people of color or members of the LGBTQ+ community. Critics of the programs say they are discriminatory and emphasize assisting only certain groups. The latest: UT Dallas is eliminating 20 jobs and its Office of Campus Resources and Support at the end of the month to comply with SB 17, university president Richard C. Benson announced this week. The move comes a week after UT Austin laid off at least 60 people who had worked in DEI positions. Most jobs were in the Division of Campus and Community Engagement, per the Austin American-Statesman. Friction point: The bill author, state Sen. Brandon Creighton (R-Conroe), sent letters last month to the chancellors and boards of regents at Texas public universities saying the organizations have made progress complying with the law but many appear to have simply renamed their DEI programs. Zoom in: To comply with the law, the University of North Texas in December moved its staff from the Multicultural Center and Pride Alliance into Student Affairs. UNT president Neal Smatresk noted that the school would support everyone, "including our first-generation, low-income and underserved students." The law states that it does not limit the support of low-income and first-generation students. Of note: Student organizations are not affected by SB 17 and can continue to host programs on race, gender identity and sexual orientation. What's next: The state Senate Committee on Education plans to hold a hearing in May to determine whether universities are complying with the law. University leaders have until May 3 to submit written responses detailing how their schools have eliminated DEI programs. Full story

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Why three NC medical students think an anti-DEI bill would be a disaster for medicine

Washington, Hyde, Gates, and Yancey are four of the North Carolina counties without a single pediatrician, OB-GYN, or psychiatrist. This is not uncommon — 20 of our state’s counties lack a pediatrician, 26 lack an OB-GYN, and 32 lack a psychiatrist.

https://ncnewsline.com/2024/04/17/why-three-nc-medical-students-think-an-anti-dei-bill-would-be-a-disaster-for-medicine/?