Chief Diversity Officers Grapple With Uncertain Future Of DEI Initiatives
Chief Diversity Officers (CDOs) are nervous their efforts for Diversity, Equity, and Inclusion (DEI) may be diminished or eradicated, leaving them with a more cautious approach, a new study reveals.
Political and Legal Challenges to Workplace DEI
A new Seramount study, “Keeping DEI Strong in Volatile Times,” highlights the impact of political and legal challenges to DEI in the workplace.
Seramount is a workplace research firm serving over half of Fortune 100 companies.
Following the killing of George Floyd, companies set pledges to prioritize DEI.
Between June and August 2020, there was a 55% increase in corporate DEI roles, and leading corporations pledged $12.3 billion to fight racism.
Now, however, while some companies are doubling down on their efforts, the majority are adopting a wait-and-see attitude.
There has also been a threat to DEI initiatives with lawsuits, DEI layoffs, and economic pressures.
The Seramount study reviewed the best practices from 100 organizations across sectors and geographies, 200 articles, and interviewed more than 30 Chief Diversity Officers (CDOs).
Their report aims to give a practical framework for businesses to integrate their DEI agenda with business excellence seamlessly as they equip them with strategies to continue anchoring inclusive values.
4 Key Vulnerabilities
The study found four key elements that DEI teams and their programming are vulnerable to, including the fight to dismantle DEI, economic downturns, new leadership, and mergers and acquisitions.
When talking about new leadership, one CDO said, “When the CEO changed at my former company, DEI became a new program where the CEO didn’t care or understand.”
“And if the CEO and senior leaders aren’t with you, you’re out there alone, and not much can happen.”
Regarding CDOs, long-time workers said they felt like they were straddling a pendulum that swings back and forth between solid support for DEI and strong headwinds against it.
The research found that companies have responded differently to the DEI decrease and backlash.
About 80% take a “wait and see approach” to DEI. As one said, they are trying to prepare for the external factors that may impact the company.
Roughly 10% of organizations are regressing, and an additional 10% are continuing forward, with some even doubling down on DEI.
Seramount urged diversity leaders to navigate dual roles as DEI change agents and business leaders by tracking, measuring, and reporting on specific business outcomes that can be tied to DEI initiatives.
“Too many companies view DEI as an auxiliary function, not as an integral component of their business,” said Smita Pillai, Chief DEI officer at Regeneron.
“The business and moral case for DEI is crystal clear to us at Regeneron, in part because we’ve been able to tie our DEI initiatives to tangible business outcomes.”
