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Corporate (DEI) Initiatives Facing Cutbacks and Legal Woes

July 1, 2024 By Richard C. Young

By Focused Adventures @Adobe Stock

Andrea Hsu of NPR tells her readers that corporate DEI programs have faced setbacks amid uncertain economic times. In another blow to diversity advocates, the Supreme Court rejected the use of race-conscious admissions in higher education, setting off predictions that corporate policies around diversity will soon meet the same fate. She writes:

Just three years after the murder of George Floyd in Minneapolis set off a torrent of hiring of chief diversity officers and other such roles, companies are coming under attack from conservative legal activists who argue that their DEI policies and programs constitute racial discrimination.

The challenges come as companies, faced with an uncertain economy, have already been laying off large numbers of people, including many only recently hired to implement their diversity, equity and inclusion (DEI) strategies.

The one-two punch has legal experts split on what’s ahead for these efforts, while longtime diversity advocates argue that companies should take these setbacks as an opportunity to reset. […]

The racial reckoning unfolding across the country unleashed demands for change. Companies scrambled to respond to the moment. According to the jobs site Indeed, job postings with DEI in the title jumped 92% from July 2020 to July 2021.

But the deceleration has also come quickly. Economic pressures have led companies to pull back, cutting DEI jobs including Colman’s alongside other human resources roles. Since last July, Indeed has seen DEI job postings drop by 38%.

And then in June, in another blow to diversity advocates, the Supreme Court rejected the use of race-conscious admissions in higher education, setting off predictions that corporate policies around diversity will soon meet the same fate.

Read more here.

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Richard C. Young
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Richard C. Young
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