DEI Under Pressure
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DEI Under Pressure

28 October 2024 / Report

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Corporate diversity, equity & inclusion (DEI) efforts in the US face increasing political, social, and legal challenges, although the underlying business case for DEI remains relevant. This report examines the future of DEI in corporate America, focusing on how it may evolve across the workplace, marketplace, and public space amid ongoing challenges and emerging opportunities.

Key Insights

  • Over 60% of executives view the current political and social climate for corporate DEI as very or extremely challenging, with most anticipating continued or escalating pushback due to growing scrutiny from agencies, lawmakers, shareholders, and activists.
  • Despite the adverse climate, fewer than 10% of firms plan to reduce DEI resources over the next three years, reflecting a continued recognition of diversity’s business value in driving innovation, market adaptability, and competitiveness.
  • More than half of surveyed companies have revised their DEI terminology to downplay specific demographics and mitigate political and legal risks, though doing so abruptly without clear explanation may lead to reputational challenges.
  • The future of DEI will be shaped by aligning strategies more closely with core business objectives, carefully navigating political and legal challenges, adopting inclusive messaging, investing in innovation, and leveraging partnerships to drive progress while mitigating risks.
  • As corporate diversity efforts mature, DEI professionals should transition from being “evangelists” to becoming “engineers,” integrating DEI into systems and strategy to more clearly demonstrate business value and make initiatives more measurable and defensible in the face of pushback.

More on this topic from The Conference Board:

  • For Many Workers, DEI Is Essential
  • Beyond Backlash: The Continued Benefits of DEI at Work

Corporate diversity, equity & inclusion (DEI) efforts in the US face increasing political, social, and legal challenges, although the underlying business case for DEI remains relevant. This report examines the future of DEI in corporate America, focusing on how it may evolve across the workplace, marketplace, and public space amid ongoing challenges and emerging opportunities.

Key Insights

  • Over 60% of executives view the current political and social climate for corporate DEI as very or extremely challenging, with most anticipating continued or escalating pushback due to growing scrutiny from agencies, lawmakers, shareholders, and activists.
  • Despite the adverse climate, fewer than 10% of firms plan to reduce DEI resources over the next three years, reflecting a continued recognition of diversity’s business value in driving innovation, market adaptability, and competitiveness.
  • More than half of surveyed companies have revised their DEI terminology to downplay specific demographics and mitigate political and legal risks, though doing so abruptly without clear explanation may lead to reputational challenges.
  • The future of DEI will be shaped by aligning strategies more closely with core business objectives, carefully navigating political and legal challenges, adopting inclusive messaging, investing in innovation, and leveraging partnerships to drive progress while mitigating risks.
  • As corporate diversity efforts mature, DEI professionals should transition from being “evangelists” to becoming “engineers,” integrating DEI into systems and strategy to more clearly demonstrate business value and make initiatives more measurable and defensible in the face of pushback.

More on this topic from The Conference Board:

  • For Many Workers, DEI Is Essential
  • Beyond Backlash: The Continued Benefits of DEI at Work
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Authors

Andrew Jones, PhD

Andrew Jones, PhD Andrew Jones, PhD

Senior Researcher, ESG Center
The Conference Board

Read Bio

Lindsay Beltzer

Lindsay Beltzer Lindsay Beltzer

Lead Program Producer, ESG
The Conference Board

Read Bio

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