Last summer, more than 200 diversity executives from Fortune 500 companies and nonprofit organizations gathered at New York University School of Law to discuss the future of legally mandated diversity, equity, and inclusion (DEI) programs by video. Ta. and social targeting. They were worried and wondered what to do. protect ourselves. Did you need to rethink your internship program for underrepresented workers, or remove certain diversity language from your website?
These concerns have escalated sharply this week. On his first day in office, President Trump took aim at diversity efforts through a series of sweeping moves.
Trump ordered furloughs for federal employees who oversee the government's DEI efforts. His efforts went beyond government employment. He revoked an executive order signed in 1965 that prohibited discriminatory hiring and employment practices against private government contractors. Perhaps most concerning to business leaders was the order's focus on private companies, whether or not they do business with the government. “We already know that this set of orders is causing fear and confusion,” said David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion and Belonging at New York University School of Law.
The executive order directs the federal government to review private sector DEI efforts, with each federal agency requiring “up to nine civil The company said it would identify “possible compliance investigations.”
“That isolated number is a way to instill fear in the hearts of organizations,” says Kenji Yoshino, a constitutional law attorney at New York University who advises some Fortune 500 companies on DEI. Until these nine cases are announced, others will be risk-averse. ”
Civil rights lawyers believe that the legally weakest DEI programs are those that award employment benefits, such as jobs or promotions, to certain groups based on race. In 2023, a Supreme Court decision struck down race-conscious preferences in college admissions, followed by a flurry of lawsuits challenging corporate diversity efforts.
Regarding this executive order, Yoshino said, “Trump is putting the power of the executive branch behind the Supreme Court's decision in 2023.''
Many companies read the writing on the wall and began shifting their approaches to DEI even before Trump took office. Earlier this month, Meta told employees it was ending its DEI operations, including eliminating the role of chief diversity officer and reversing its diversity hiring goals. Tractor Supply, John Deere and Harley-Davidson also withdrew under DEI. Amazon has also recently scaled back some of its diversity programs, with Vice President Candy Castleberry writing in a memo to staff in December: “We are scaling back outdated programs and materials.” .
Some companies, including Walmart, have announced they will stop sharing data with the Human Rights Campaign, a nonprofit that tracks companies' LGBTQ policies.
Yoshino said he doesn't see any legal risks in sharing data with the Human Rights Campaign and believes companies are pulling back on the initiative to avoid public backlash. He believes many other DEI programs, such as unconscious bias training and fellowships and retreats aimed at promoting employees of color, are legally safe but open to everyone. Masu.
Nearly a dozen companies did not respond to requests for comment on the future of their DEI programs, with some declining to comment for fear of drawing attention to their efforts.
Ishan Baba, managing partner at law firm Jenner & Block, said he has received a “tons” of calls since the executive order was issued from clients concerned about whether their DEI programs are being compliant. He said he was there. He said it's still early days and there could be legal challenges to the executive order and any subsequent executive actions, but “an executive order like this will reflect what this administration's priorities are.” It gives me a good idea of what's going on.”
The White House did not respond to a request for comment, but the text of the executive order condemns “illegal DEI” policies that “reject traditional American values of supporting hard work, excellence, and individual achievement, and It undermines and undermines trust.” I'm talking about an illegal, corrupt, and harmful identity-based loot system. ”
Some companies, like Costco, Patagonia, and Microsoft, are staunch supporters of DEI. For chief diversity officers who are doubling down on work, it's not just whiplash, but a new sense of isolation. Less than five years after George Floyd was killed in May 2020, dozens of companies have begun announcing new initiatives to combat racial injustice. Walmart has established a Center for Racial Equality. Consulting firm Bain has launched a new DEI practice. Glassdoor reported a 54% increase in DEI job openings in 2020 compared to pre-pandemic levels.
Some diversity leaders are beginning to brainstorm ways for companies to continue their efforts without facing legal scrutiny. Glasgow said he's starting to think it's time to retire the term “DEI,” now that those three letters have taken on political meaning.
“If you had asked me a year ago, I probably would have said don't change it,” Glasgow said. “Over time, I've become a little more convinced that this acronym is useless, because empty terms are easy targets.”
Those trying to salvage the underlying goals of DEI programs said they are trying to maintain optimism despite the coldness on the ground.
“The backlash is for a very narrow scope of work,” said former Uber diversity officer and current research and advisory arm of AnitaB.org, which supports women and non-binary people in tech. Bo Yong Lee, the company's president, says: That “narrow scope” includes things like sharing data with Human Rights Campaign metrics and offering internships for racial and LGBTQ minorities, she said. For example, she views paid parental leave as a diversity policy that is now deeply embedded in company culture and safe from attack.
Dennis Young, former Worldwide Human Resources Director Apple's CEO said that while corporate diversity leaders face a more complex environment on the job, many companies will find ways to continue hiring diverse talent because they know it's good for business. He said he believed it.
“Despite the political environment we're in now, the needs of business remain the same,” Young said. “Talent comes in all forms of human existence.”
