By Nikki Gum, Manager, Brand Communications
After SCOTUS’ June 2023 ruling on affirmative action in college admissions, we at AWE expressed concern that the impact on the business world would be profound. However, we couldn’t have possibly imagined the range of challenges corporate DEI efforts would face in the months since that decision, or the myriad challenges that still lie ahead.
This month, a federal judge in Texas ordered the Minority Business Development Agency—a 55-year-old federal agency created to help minority-owned businesses secure financing and navigate the federal contracting process—to open its doors to all races. This decision alone will negatively impact both minority-owned businesses, and large companies that have vowed to have a diverse supply chain, in ways we can’t yet fathom.
In 2022, Florida Gov. Ron Desantis signed the Stop W.O.K.E. Act, which sought to ban training or instruction on systemic racism and sexism in workplaces and schools. In 2023, at least 65 bills were introduced at the state and federal level with the goal of limiting DEI.
Shortly after the SCOTUS affirmative action ruling, a federal judge in Tennessee struck down a Small Business Administration program’s provision that equated race with social disadvantage. Similarly, the future of the Fearless Fund, which provides early-stage funding to businesses led by women of color, was called into question late last year by a federal appeals panel.
Dozens of major companies have also been the target of “reverse discrimination” lawsuits aimed at undermining DEI programs and practices. Pfizer, Comcast, Macy’s, IBM, and American Airlines are just a few of the companies that have faced or could soon face legal challenges. And earlier this month, CBS was sued by a “Seal Team” writer over alleged racial quotas for hiring writers.
Diversity and inclusion experts agree that these legal challenges are stymieing corporate efforts to address workplace inequality at a time when investment in DEI had already slowed years after the post-George Floyd surge. Amid legal threats, companies continue to eliminate or restructure DEI-related positions and departments, and put programming on hold.
We don’t know which ways interest groups will come for DEI programs next. What we DO know is the value and impact of such initiatives. We must stand firm in our support of DEI, lest we lose the progress this country has made over the last six decades.