Flipping the Script on DEI
In the wake of last year’s United States Supreme Court affirmative action opinion that placed limitations on how race can be considered in college admissions, rhetoric around Diversity, Equity & Inclusion (DEI) initiatives has become more polarized than ever. This round started with 13 Republican state attorneys general writing to Fortune 100 CEOs, claiming that some DEI initiatives lead to illegal preferential treatment on the basis of race.[1] Twenty-one Democratic state attorneys general then responded with their own letter to Fortune 100 CEOs, insisting that working to provide opportunities for historically underrepresented communities is not only lawful, but good for business.[2] Six months later, the debate is pervasive in our social discourse with prominent influencers echoing the meme, “D-E-I must D-I-E”.[3]
There are Multiple Dimensions to DEI
Contrary to the binary positions represented in the AG letters, DEI realities do not fit neatly into a bipolar debate. While debates linger on topics such as racial quotas in hiring and mandated gender diversity on Boards of Directors, organizations that are successful at drawing business value from a diverse and inclusive culture generally approach DEI through multi-faceted lenses that include advancing business goals, optimizing the supply chain, building brand equity, attracting and retaining the best talent, fulfilling compliance requirements, and making positive impacts in the communities in which they operate.
In such a climate, DEI practitioners must explore all perspectives – even those of detractors – to craft holistic strategies that create value for their organizations. This means that stakeholder engagement and messaging is critical for sustainable DEI programs which can withstand the scrutiny of skeptics who wonder whether any of this work is truly necessary, and advocates who wonder why more isn’t being done faster.
Despite the Polarization, DEI Initiatives – Done Properly – Create Value
The events and resulting social discourse of the early 2020s created a swell of altruistic support and commitment to DEI initiatives, leading to reactive strategies which were largely unchallenged and overwhelmingly focused on race. Follow-through on commitments has been mixed at best, and more recent events have altered social discourse. While DEI initiatives can indeed have a substantive impact on social challenges, the altruism case alone can be short-sighted, myopic, and vulnerable to challenge from vocal stakeholders who question whether pursuing such goals are the best use of an organization’s limited resources – particularly during challenging economic times.
If, instead, DEI strategies have the same central purpose as strategies for product development, marketing, employee well-being, and business development – creating value for the core business and its stakeholders – DEI initiatives can become shared, cross-functional efforts which evolve with the internal and external business landscape. Approaching DEI as a strategic enabler for organizations meets the needs of a broad stakeholder landscape while still moving the needle on critical social issues. As a business community, we have not been discussing DEI in a truly strategic context. It’s time to flip the script on how we approach DEI.
If DEI strategies have the same central purpose as other core business strategies – creating value for the core business and its stakeholders – DEI initiatives can become shared, cross-functional efforts which evolve with the internal and external business landscape.
A Guide to Creating Valuable DEI Programs
The aim should be much more ambitious than making a societal impact at a moment in time. Organizations should create defensible, sustainable DEI programs that support core business objectives with efforts fueled by the power of cognitive, experiential, neurological, behavioral and social diversity. Doing so can maximize leadership buy-in across the business. The following best practices represent a great starting point for strategic reflection in today’s polarized environment:
Review policies, processes, and communications to ensure that DEI-related activities are defensible amidst increased scrutiny.
The increased scrutiny creates an opportunity to remind internal stakeholders of company values and commitments. This will, no doubt, include the organization’s commitment to a fair and welcoming workplace that is free of all forms of discrimination. Any policies and practices which could be misinterpreted as being exclusionary to any identity group(s) should be clarified in line with core values.
Approach leaders with an offer of support to enable their success.
Most DEI practitioners have a wish list of things that are required from leaders to achieve DEI objectives. Very few DEI practitioners are able to articulate how their DEI objectives support or accelerate the objectives of those leaders from whom they are soliciting support. Take the time to explore the current business landscape and the specific challenges that leaders are facing. DEI initiatives can impact core business drivers such as operational efficiency, customer loyalty, employee turnover, and supply chain resilience. When DEI initiatives are explicitly linked to addressing business challenges, they tend to receive higher priority and sustained support.
Avoid reactive pivots away from DEI initiatives.
DEI is neither a social program nor a box-ticking exercise to ensure regulatory compliance. DEI is a strategic enabler and a critical gateway to responsible human capital practices. Done right, DEI brings out the best in all of an organization’s people, including the majority . Done right, DEI engages customers, employees, and partners in ways that build long-lasting, valuable relationships. This is not the moment to pivot away from DEI – it’s the moment to ensure we’re doing it right.
Measure progress against goals and communicate results.
Measurement is not only a keystone of any strategy, but helps to highlight success and realign resources to actions that are accretive to value. Beyond conventional measurement of demographics, measuring inclusion, attrition, performance, pay equity, etc., can provide leading indicators of issues and lagging indicators of program success.
We welcome the opportunity for further discussion about this particular insight and other DEI-related topics. Contact our team below.
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[1] Kris W. Kobach, Jonathan Skrmetti, Steve Marshall, Tim Griffin, Todd Rokita, Mike Hilgers, Brenna Bird, Alan Wilson, Daniel Cameron, Patrick Morrisey, Lynn Fitch, Andrew Bailey and Austin Knudsen, “Letter from Attorneys General of 13 States to Fortune 100 CEOs,” Wall Street Journal (July 13, 2023), https://s.wsj.net/public/resources/documents/AGLetterFortune100713.pdf
[2] Aaron D. Ford, Kris Mayes, Rob Bonta, Philip J. Weiser, William Tong, Kathy Jennings, Brian Schwalb, Anne Lopez, Kwame Raoul, Aaron M. Frey, Anthony Brown, Andrea Campbell, Dana Nessel, Keith Ellison, Matt Platkin, Raúl Torrez, Letitia James, Ellen Rosenblum, Peter Neronha, Charity Clark and Bob Ferguson, “Letter from State Attorneys General to Fortune 100 CEOs,” Bloomberg Law (July 19, 2023), https://aboutblaw.com/9pR
[3] Jordan Peterson, “Jordan Peterson: Why I am no longer a tenured professor at the University of Toronto,” National Post (January 19, 2022), https://nationalpost.com/opinion/jordan-peterson-why-i-am-no-longer-a-tenured-professor-at-the-university-of-toronto; and “DEI must DIE. The point was to end discrimination, not replace it with different discrimination,” Elon Musk [@elonmusk] (December 15, 2023), https://twitter.com/elonmusk/status/1735568882499211557?s=20
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