A recent survey of 125 corporations conducted by YourCause and the Association of Corporate Citizenship Professionals reveals that despite significant criticism of corporate Diversity, Equity and Inclusion (“DEI”) initiatives, companies are not backpedaling on their commitments to DEI (New survey, 2024). Carolyn Berkowitz, ACCP President and CEO, said,
“Our survey sends a clear signal that despite an intense political environment, DEI, CSR [Corporate Social Responsibility] and ESG [Environmental, Social and Governance] programs progress as executives continue to strongly support the work given the business advantage they provide. 96% of the companies that responded to our survey report their companies’ commitment to DEI remains strong, although they are mitigating risk by adjusting how they communicate about the work and encouraging legal review of existing programs. It is good news for the profession as budgets, staffing and leadership’s commitment remain flat or increase, despite a politically turbulent backdrop and intense scrutiny.”
In 2020, DEI efforts came under increased scrutiny as programs were rapidly developed and implemented in the wake of racial unrest. This scrutiny was intensified when the Supreme Court struck down affirmative action in college admissions. In the current political climate of the United States, some businesses have become quiet about their efforts to diversify their workforces, despite their apparent dedication to DEI initiatives.
Just this month, the Society for Human Resource Management (SHRM) announced it was dropping the word “equity” and would replace DEI with “I&D” to lead with inclusion going forward. SHRM’s CEO, Johnny C. Taylor Jr., stated, “We’re going to lead with inclusion, because we need a world where inclusion is front and center. That means inclusion for all. Everyone has a right to feel that they belong in the workplace and that they are included”
Are I&D efforts in the workplace beneficial from a legal perspective? Yes. Bloomberg states that, in 2024, the percentage of women in C-suite jobs with large companies has fallen for the first time in 20 years; according to S&P, while the percentage of female board members continues to rise, the growth of women’s representation in executive roles has slowed to the lowest rate in more than a decade. Gender diversity has the potential to create a larger pool of women in top levels of management from which to recruit executives.
Bridge Partners’ 2024 Inclusion Barometer, an annual study on DEI in corporate America, found an enduring commitment to DEI across corporate America:
The survey portrays a complex landscape where DEI is increasingly recognized as an integral benefit to corporate strategy and organizational culture, but an outward embrace of it is faltering in some places. While political and public debates have somewhat influenced corporate DEI strategies, the majority of leaders have thoughtfully continued to integrate DEI into their core business operations, while acknowledging that their executive teams still do not fully reflect the diversity of their employee base and customer demographics. This highlights ongoing representation gaps, particularly in leadership roles. Organizations are not ready to give up on DEI. 72% expect to expand their DEI programs in the next 24 months. This forward-looking stance is coupled with an acknowledgment of the need for more robust metrics to measure the success of DEI initiatives.
If your company wishes to institute DEI strategies, or if your DEI efforts have come under attack, you should consult an employment attorney to understand your obligations as an employer. Thatcher Zavaro & Mani can provide training and guidance to your company to help your business promote and maintain a culture of diversity and inclusion where there is no place for unlawful discrimination.
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