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Employers Caught in DEI Political Crossfire

Companies that previously touted their DEI progress are now questioning whether they’ve set themselves up for future legal action.

By Jeff Green | August 04, 2023 at 09:06 AM
Stock illustration: Divided American political groups and United States culture war between conservative society and liberal ideas as an election debate or US voter divisions. Credit: freshidea/Adobe Stock

The U.S. Supreme Court’s ruling against affirmative action has sparked a fierce debate over the future of diversity in corporate America, with dueling sides claiming either that workplace programs are unaffected by the decision or that they’re suddenly open to legal challenges. The resolution could be years away, throwing companies’ existing efforts into an indefinite limbo.

The court’s decision last month, which effectively banned race-conscious admissions in universities, sent an immediate chill through U.S. corporate boardrooms, as CEOs wondered whether the scope of the ruling could apply to their own hiring goals. It also offered fresh provocation to some Republican lawmakers who’ve long campaigned against what they call “woke” capitalism.

Companies that had been bragging about their diversity, equity, and inclusion (DEI) progress in the three years since George Floyd’s murder are now questioning whether they’ve set themselves up for future legal action, said Lindsay Burke, co-chair of the employment practice group at law firm Covington & Burling, which has done racial equity audits for companies including Airbnb Inc. and BlackRock Inc.

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Some overzealous programs could be viewed as giving a discriminatory preference to a particular minority or group, potentially leading to lawsuits from conservative activists.

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