Companies Are Ditching The E In DEI To Avoid Legal Risks

Facing rising scrutiny and backlash, more than half of companies are changing how they present their diversity, equity, and inclusion (DEI) initiatives, according to recent data from the Conference Board.

A survey of over 60 executives revealed that 50% have adjusted DEI terminology to reduce an emphasis on racial diversity, with 20% more considering similar changes. 

Notably, “equity” is frequently being omitted as it’s perceived as the most controversial term.

A Response to Legal and Social Pressures

This shift follows increased pressure from conservative activist groups and legal challenges.  The Supreme Court’s 2023 ruling against affirmative action in higher education has led many companies to re-evaluate DEI language to preempt potential litigation. 

“Companies are trying to minimize exposure to scrutiny, legal challenges, and salacious headlines,” Andrew Jones, a senior researcher at the Conference Board’s ESG Center and co-author of the report said according to Bloomberg.

In some cases, companies such as Toyota and Ford have been targeted by conservative groups accusing DEI programs of disadvantaging white workers, leading to adjustments in language and the framing of DEI initiatives. 

According to Jones, many businesses are moving away from terminology that focuses on specific racial or demographic groups in order to avoid drawing negative attention.

Changes Focus on Language, Not Substance—For Now

While the majority of companies are primarily focusing on changing the language around DEI, the underlying programs remain mostly intact. 

“The core work is ongoing, as companies recognize the tangible benefits of inclusive work environments,” notes Jones. 

However, by removing specific group references, companies risk diluting the progress that has been made in creating opportunities for underrepresented groups.