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The end of affirmative action has prompted a DEI reckoning

Tuesday, Nov 28, 2023

Image: LSIA

US companies' diversity, equity, and inclusion (DEI) efforts – aka attempts to achieve "fair outcomes” in hiring and promotion – have taken a step back after the Supreme Court struck down affirmative action this summer, per a new report from consulting firm Paradigm.

Some quick background: In June, the Supreme Court ruled that US public and private schools can't explicitly consider race in their admissions process. Since then, the group that brought the SCOTUS case – the American Alliance for Equal Rights – has sued two law firms over fellowship programs that were open only to students of color, those who identify as LGBTQ+, or those with disabilities.

The Alliance argued the fellowships represented discrimination against other groups, including white people, straight people, and those without disabilities.

  • In response, the law firms broadened their programs’ criteria to all law students at a certain stage of school, resulting in the lawsuits being dropped.
  • Another major law firm – which had not been sued – also changed its minority fellowship program following the suits.

GOP lawmakers are pushing back on race-based DEI programs, too. In a letter sent a few weeks after the Supreme Court overturned affirmative action, 13 Republican state attorneys general urged Fortune 100 companies to reexamine their DEI programs in the wake of the Court's decision. More specifically, the letter warned companies against using "explicit racial quotas in hiring, recruiting, retention, promotion, and advancement."

📸 Big picture: Race-based DEI programs have had a large impact on corporate America in recent years. Since 2014, roughly half of S&P 100 companies have publicly stated a diversity goal.

📊 Flash poll: In general, do you support corporate DEI programs aimed at achieving "fair outcomes” in hiring and promotion?

See a 360° view of what media pundits are saying →

Sprinkles in favor of corporate DEI programs

  • Some commentators argue companies should keep up their race-based DEI efforts until racism no longer affects our society, and that more diverse teams make smarter decisions and better investments, are more adaptable, and drive innovation.
  • Others contend that Republican lawmakers pushing back on DEI efforts shouldn’t be allowed to influence whether or not a private employer takes steps to diversify its workforce.

Sprinkles against corporate DEI programs

  • Some commentators argue America’s corporate DEI industry was embedded into so many powerful public and private institutions so quickly that due diligence was skipped and costly failures were guaranteed.
  • Others contend that many current DEI programs, however well-intentioned, are clearly illegal and unconstitutional after the Supreme Court struck down affirmative action, and that companies should reground their hiring practices and DEI initiatives around equal opportunity and genuine inclusivity.
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