Has the corporate pendulum on diversity, equity and inclusion (DEI) drastically shifted in response to the new administration's rhetoric? A new study from Littler, a labor-focused law firm, suggests that it has not. In fact, according to their data, just 8% of American C-suite leaders are seriously considering changes to their current DEI policies.
The study, which surveyed nearly 350 C-suite executives across the country, demonstrates that despite a few high-profile DEI reversals, many companies are reluctant to rush out major reforms. Sixty percent of respondents said they would wait for more details on the new administration’s priorities—like enforcement mechanisms—before making changes. What’s more, 49% reported not considering new rollbacks to their DEI programs as a result of the recent executive orders.
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Although many firms have left their DEI policies untouched up to now, that doesn’t mean that they’ve been unaffected by the recent political discourse. Over half of respondents (55%) said they’ve been more worried post-inauguration about the risk of DEI-related lawsuits, government enforcement, and shareholder proposals. As one would expect, these fears are more prevalent among federal contractors. What’s more, 53% said they expected the administration’s actions or general stance to push organizations to moderate their DEI commitments over the next year.
The study’s authors attribute the hesitancy of many business leaders to change their organizations’ DEI approaches to conflicting incentives. On one hand, the federal government has made it known that it considers some DEI policies illegal, or at least undesirable. On the other hand, many organizations view DEI as a crucial part of their talent recruitment and retainment. Littler’s pre-inauguration survey showed around three quarters of respondents saying that employee expectations played a role in continued DEI efforts.
Caught between the perceived risks from this anti-DEI government and employee expectations to continue DEI initiatives, it would make sense that organizations try to keep both groups happy. Sixty-one percent of executives who reported looking to roll back DEI said they were focused on removing DEI-related language from their websites, proxy statements, and outward-facing communications.
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