The U.S. Supreme Court’s ruling on race-based affirmative action in June 2023, while not applying to companies, has been one of many factors affecting perceptions around workplace diversity, equity, and inclusion (DEI) policies. And while most Americans say diversity strengthens the United States, a minority of Americans support mandatory DEI training in the workplace, according to The Hill, citing a recent Marist National Poll.
Even prior to the Supreme Court ruling, opinion on DEI efforts in the workplace were mixed, HR Dive reports, citing a Pew Research report from May 2023. The report, based on a survey of more than 5,900 U.S. workers, found that about a third of respondents said it was important to them that their employer have a mix of employees of different races, ethnicities, or ages; about one in four said it was important to have an equal mix of men and women; and less than a fifth said it was important to have a mix of workers with different sexual orientations. The New York Times reports that after sharp increases in 2020 and 2021, job postings for DEI positions on ZipRecruiter and Indeed’s sites decreased in 2022 and 2023.
The Evolution, and Renaming, of DEI
The Society for Human Resource Management (SHRM), the world’s largest human resources association, recently announced that it was dropping the word “equity” from its DEI strategy. “Effective immediately, SHRM will be adopting the acronym ‘I&D,’ instead of ‘IE&D,’” the organization announced on LinkedIn.
As The Washington Post reports, SHRM CEO Johnny C. Taylor Jr. said that DEI proponents traditionally focused on improving representation for historically marginalized groups, thinking “the magic bullet was diversity.” He said, “We underestimated that inclusion was the real challenge. Now people are saying, ‘Not only should we probably call it something different, we should probably evolve it.’”
This example shows that at least some companies are switching, to varying degrees, the order of their focus since the Supreme Court ruling and the ensuing backlash on corporate hiring based on race, gender, and sexual orientation. The focus is now on ensuring that everyone in the workforce feels comfortable rather than stressing differences.
As another example, following in the footsteps of several other major companies like Harley-Davidson, Jack Daniel's, and Lowe’s, carmaker Ford recently removed itself from the Human Rights Campaign’s Corporate Equality Index. In a letter to employees, Ford CEO Jim Farley said that the carmaker had withdrawn from the index and won’t participate in other “best places to work” lists but will still foster “an environment where all of us can do our best work anchored in respect and inclusion.”
What Surveys Are Saying
Despite a renewed focus, surveys show that companies remain committed to DEI. Of the 194 chief human resource officers surveyed by the Conference Board in late 2023, none reported plans to scale back DEI initiatives. A survey of 320 C-suite executives released in January 2024 by employment law firm Littler found that just 1% said they had significantly decreased their DEI commitments over the past year, while 57% increased efforts.
A recently released survey by The Executive Leadership Council (ELC) that queried top Black executives found that 72% of respondents said their organizations’ commitment to DEI was either “very” or “moderately” strong, while 36% noted less vocal support for DEI at their companies.
Perhaps more importantly, the American public by and large is behind DEI workplace efforts, according to The Washington Post. The newspaper reported that from a survey of 2,274 Americans, including 1,371 workers, about 60% of respondents said that DEI programs are “a good thing.”
For businesses, it’s the bottom line that counts, so public opinion is important. If DEI policies, or a lack thereof, hurt profits, they’re likely to be jettisoned. According to recent data from a Human Rights Campaign (HRC) Foundation survey, LGBTQ+ workers and consumers place priority on a company’s policy toward the demographic when deciding where to work and spend. Among the key findings of the survey of 2,432 LGBTQ+ identified adults, about 80% would boycott a company that rolled back DEI initiatives, and over half would urge others to boycott the company, including posting negative reviews and sharing their concerns on social media.
Where Is DEI Heading?
With the U.S. presidential election cycle in full swing—featuring the first Black woman and first South Asian American to be the presidential nominee of a major political party—the issue of DEI has been lifted into the spotlight once again.
A new report by the Congressional Black Caucus (CBC) offers best practice guidelines for corporate DEI policies and calls on companies to commit to advancing racial justice in the workplace. The Associated Press reports that the study outlines a dozen areas where corporations can focus on expanding DEI, including workplace culture, data disaggregation, talent opportunities, retention, pay equity, and procurement. The study invites companies to “collaborate legislatively” to develop laws that “create perpetual accountability for corporate America [and] help close this massive gap of inequality.”
The world’s largest business organization, the U.S. Chamber of Congress, recognizes the role diversity plays in enhancing business. On its website, it states, “Diversity is America’s strength, spurring the innovation and creativity that have made the U.S. economy the most vibrant and dynamic in history. When businesses recognize and embrace different perspectives, they are better able to create value, serve customers, support employees, and solve problems.”
Competition for workers is tight, with many companies reporting difficulties in filling roles, especially ones requiring technical skills. The need for a highly skilled workforce requires companies to offer not only competitive pay, but also a positive work culture. It also requires companies to tap into formerly neglected segments of the population. Whether workplace DEI programs will play a role in achieving these goals is still up for debate, though it remains top of mind for many, even as there continue to be shifts in company practices around the world.