A chill went through corporate boardrooms nationwide when the Supreme Court struck down affirmative action programs in college admissions. Many C-suite leaders had long dreaded this day since the ruling could imperil the legal standing of corporate diversity, equity, and inclusion (D.E.I.) efforts.
If you’re looking for a primer on D.E.I. before we dive in further, check out our blog to get you up to speed.
With the elimination of race-conscious considerations in college admissions, many legal scholars offered that this would bleed into the business world, too. Would corporates now be forbidden from considering race, gender identity, sexual orientation, and other factors as part of hiring practices or internal campaigns?
The answer is no… or, at least, not yet.
The Scope of the Decision
SCOTUS’ decision in June will apply to universities and government bodies, meaning that private enterprises are exempt. However, should a diverse hiring case reach the highest court in the land, its current roster would seem primed to curtail these efforts in a similar fashion.
For now, chief diversity officers can take a deep breath, but they shouldn’t be intimidated into thinning down their efforts. Rather, CDOs have an opportunity, and perhaps a responsibility, to bolster their D.E.I. footprints and reinforce existing foundations.
This push is necessary to counteract the shockwaves that candidate pools are expected to face due to SCOTUS’ decision. Studies conducted at schools that eliminated affirmative action prior to the ruling found their diverse student body demographics plummet in following years.
For example, when the University of Michigan eliminated affirmative action, Black undergraduate enrollment declined from 7% in 2006 to 4% in 2021. This trend is expected to be seen at universities across the country.
With reduced diverse enrollment, employers will have less qualified diverse applicants to hire. As countless studies have shown, diversity gives companies an edge on several fronts.
For example, Harvard Business Review found that diverse teams make smarter decisions, better investments, and drive innovation. Therefore, with moral obligations aside, companies ought to promote diversity because of its intrinsic value to bottom lines.
The Ripple Effects
In terms of threats to D.E.I., the SCOTUS decision is but the tip of the iceberg. In fact, more than 30 state or local bills have been proposed or are being introduced across the country. And nearly half of States in the Union have either explored anti-D.E.I. bills or are in the process of drafting them. These bills vary in scope, but most seek to drop diversity statements from hiring practices or outright defund D.E.I. offices.
With these challenges closing in, some legal scholars have suggested paring down existing D.E.I. practices or re-labeling diversity officers’ titles. More, some have suggested departing from the term “diversity” in favor of terms like “engagement” and “inclusion,” so as to reframe their efforts as boosting organizational culture and not always racial diversity.
However, this course of action runs the risk of alienating both existing and prospective employees. Today, employees expect their employers to be leaders in diversity, and they’re happy to look elsewhere if that isn’t the case.
Diversity is an Employment Draw
A 2023 study from Benevity found that among 1,000 full-time employees in the U.S., 95% of respondents said that they weigh prospective employers’ D.E.I. programs when choosing between job offers. And 87% of employees said they would feel more loyal to a company with a track record of prioritizing D.E.I.
In this environment, companies have a golden opportunity to stand out from the crowd as D.E.I. is assailed left and right. By affirming to employees and the public that D.E.I. remains an integral part of their business plans, companies will benefit twice over.
First, your current employees will be reassured that you’re both paying attention to the earlier question of D.E.I. issues in our country and are prepared to go to bat for their diverse colleagues. Second, prospective employees will see your public embrace of D.E.I. as emblematic of the culture you’ve created in your workplace.
What Should We Expect Next?
Revisiting our hypothetical scenario from earlier, should SCOTUS cleave any legal standing D.E.I. has left with a relevant case, this important work can still continue. Recruiters and HR pros will need to prepare for a day when the law explicitly forbids any sort of organizational efforts to promote racial diversity.
But it won’t be a cake walk, for with diminishing diversity returns from graduating classes, recruiters will have a harder time finding high-caliber, diverse talent. If companies are serious about fostering a culture in which those with diverse backgrounds can thrive, then now is the time to get to work on an action plan.
With any D.E.I. work comes the need for authentic, intentional programs. At Longview Strategies, we work with companies to ensure their D.E.I. practices are inclusive, well-reported, and in-line with stated brand values and missions.
If you’re looking to revamp your D.E.I. programs or find a better way to tell your story around them, let’s get in touch.
