Amid Assaults, Corporate America Must Readdirm Commitment

By Hazel Trice Edney

It wasn’t long ago when the nation’s long entanglement with systemic racism seemed to reach a reckoning point.

The horrific murder of George Floyd led to millions of Americans calling for long-overdue justice and accountability. Amid the aftermath, diversity, equity, and inclusion (DEI) efforts became the new buzzwords in corporate America, with businesses pledging to reverse their legacies of longstanding inequity that froze Black Americans out of economic opportunities. 

But nearly four years later, many corporations have allowed their commitments to quietly fade. And the DEI philosophy is now under assault by Republicans seeking to dismantle these attempts to build a more equitable and just workforce.

With Republicans like Florida Gov. Ron DeSantis issuing withering attacks on DEI programs and signing legislation banning initiatives at the state’s public colleges, Congressional Democrats — specifically the Congressional Black Caucus — are pushing back and pressing companies who made commitments to not back down and to instead escalate and reaffirm their commitments.

They’re right. Although progress has been made, studies have shown these minimal efforts toward diversity to be “slow-moving and yet to have meaningful impact for the Black community,” wrote the CBC in a recent letter to corporate leaders.

Now is not the time to back down, but rather double down because DEI policies are effective in reversing the historic underrepresentation in fast-growing high-wage industries, low probabilities of advancement, and a lack of representation in executive roles.

Not only do CEOs have to live up to their commitments, but they also must respond to the CBC and make clear their intentions by the Jan. 31 deadline set by lawmakers.

A new study by McKinsey revealed a direct link between diversity and holistic impacts. For starters, the study found that companies with greater diversity on their boards of directors are more likely to outperform financially. Meanwhile, those in the bottom quartile for gender and ethnic diversity are less likely to outperform financially, indicating that lack of diversity may be getting more expensive.

Additionally, diverse leadership teams could help to bolster community involvement, positively impacting ethical disposition, community orientation and the general image of a company, the study determined.

This is clear evidence that DEI policies can effectuate real change and create environments where diverse populations can work and thrive, a concrete step in mitigating the damage wrought after companies built their wealth on the back of racist policies.

Companies must also take a clear-eyed look at public sentiment.

While it’s understandable that many corporations have been rattled over campaigns against how they handle environmental and social causes, as well as consumer-led boycotts as part of the “anti-woke” culture war, evidence has shown that the fervor has started to wane.

Recent polling has shown limited enthusiasm for these efforts, including among many Republican primary voters who would prefer that government revert to the principles of small-c conservatism and stay out of the affairs of private enterprise.

The American people, however, are aligned with the ongoing fight to eradicate injustice. As the CBC pointed out, recent polling shows that an overwhelming majority of Americans across races, ideologies, and generational lines believe that corporations should be taking active steps to ensure their businesses reflect the diversity of the country.

That doesn’t mean the threat against DEI initiatives has dissipated. Former President Donald Trump has offered a preview for policies he would implement should he retake the White House, wielding the power of the federal government to fully eradicate diversity initiatives in American business, among other dangerous policy ideas.

It’s precisely because of these threats and the very real prospects of a second, more unrestrained Trump term, that corporate America must solidify its commitment to real change. We can’t let a retreat from embracing more responsible governance be a short-sighted causality of these tumultuous times.

The message to business leaders is simple: You’ve committed to these DEI initiatives because they are the right thing to do. And America wants to know that you’re still in.

This isn’t an exercise to simply check off the right boxes, but rather, create lasting change that will close the racial wealth gap, drive upward Black economic mobility, and ensure a prosperous economic future for all — not just the chosen few.