Dive Brief:
- Eight in 10 companies in the U.S. say their organization is committed to diversity, fairness and inclusion, despite daunting legal and cultural constraints, a May 12 report from global nonprofit Catalyst, Inc., and New York University School of Law’s Meltzer Center for Diversity, Inclusion and Belonging revealed.
- Even so, 77% of U.S. organizations have adapted their inclusion efforts over the past three years, according to a January survey of more than 2,200 employees and company leaders, including individual contributors and entry-level workers and mid-level, senior-level and executive-level employees.
- Federal contractors have been the most affected, the survey found. Regulatory pressure to rollback diversity, equity and inclusion led 51% of federal contractors to decrease their inclusion efforts; by contrast, only 20% of nonfederal contractor companies have done so. On the other hand, 52% of nonfederal contractor companies reported increasing their inclusion efforts, compared to only 32% of federal contractors, according to the report.
Dive Insight:
Notably, what organizations say publicly about their inclusion initiatives may not be what’s going on behind the scenes, Christina Thomas, the Meltzer Center’s project director, pointed out in a media release. The survey found that while 55% of employees said their company signaled a public retreat from inclusion, only 34% said their company actually reduced its efforts.
“DEI is not dying — it’s evolving,” Catalyst Vice President Joy Ohm stressed in the release. Organizations are “adjusting their strategies, so this is a story of adaptation, not a broad rollback.”
Based on their specific risk exposure, companies are adopting “nuanced approaches,” Meltzer Center’s Executive Director David Glasgow explained.
A recent virtual event hosted by attorneys at Epstein Becker Green confirmed that corporate DEI programs are very much alive. With some tweaks, employers can reduce the likelihood they’ll face litigation related to these efforts, the attorneys said.
For instance, employers may want to focus on DEI-related training concepts that constitute best practices, such as antiharassment, antidiscrimination and respectful workplace conduct. They should also keep employee development opportunities open to any interested individual and select participants based on their merit, the attorneys recommended.
Employees and organizational leaders alike “recognize that inclusive workplaces drive reputation, sales and talent,” Catalyst Senior Director Emily Shaffer emphasized. Nearly three-quarters of those who responded to the survey said they’re more likely to apply for a job at a company that reaffirms support for inclusion, and 69% said they’re more likely to purchase products from companies that support such efforts.
Costco’s experience shows why DEI branding is still critical, experts recently told HR DIve. Despite pressure from shareholders and state attorneys general, the discount giant stayed the course on DEI and saw its valuation more than double since 2021.
