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Companies drop D or E from DEI to avoid criticism
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Companies drop D or E from DEI to avoid criticism

After a backlash against DEI programs from conservative activists, a majority of executives in a new survey said their companies have changed how initiatives are described with less focus on racial diversity.

Of the more than 60 executives, just over 50 percent said their firms have adjusted terminology, and another 20 percent are considering similar changes, according to a survey by the Conference Board. In many cases, companies drop “fairness” from descriptions because it’s considered the most controversial term, said Andrew Jones, senior research fellow at the Conference Board’s ESG Center and co-author of the study.

Companies are “trying to minimize exposure to scrutiny, to legal challenge, to backlash, to salacious headlines,” Jones said in an interview. They are “shifting their focus away from talking about specific demographic groups, particularly around race.”

Corporate America expanded diversity, equity and inclusion programs in 2020 after the police killing of George Floyd, a black man, sparked calls for increased opportunities for minorities. Conservative groups argued that the hiring targets and training programs discriminated against white workers. Companies like Toyota Motor Corp. and Ford Motor Co. modified DEI initiatives after being attacked.

The June 2023 US Supreme Court ruling banning affirmative action in universities is also prompting many companies to proactively review their policies. More than 60 percent of executives said the decision had a negative impact on their DEI efforts, according to the data, which was drawn from an April survey and a March roundtable discussion.

It’s unclear whether the companies that changed the terminology also changed how the programs are run, or whether they’re mainly trying to avoid controversy.

“We’re seeing ground-breaking work continue with the recognition that the inclusive workplace has real business benefits,” Jones said. “But if you stop focusing on certain groups, you say it’s good air for everyone. Is this a positive development? Or does it actually slow down vital progress?”