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Companies are navigating competing pressures as they reevaluate their diversity, equity, and inclusion (DEI) policies.
Several high-profile activists and lawmakers have sought to convince organizations to scale back their DEI efforts following the US Supreme Court’s 2023 decision overturning the use of affirmative action in college admissions. Recently, several organizations with well-known names have halted, scaled back, or altered DEI initiatives.
Meanwhile, proponents have called on corporations to reaffirm their commitment to DEI. Many companies have also said they plan to expand on the DEI policies.
How can organizations mitigate risks while remaining committed to DEI? Here are some tips to help organizations navigate their way through this charged landscape.
1. Make the case for your policy
Companies that adopt DEI initiatives should be able to share the rationale for their decisions.
- How do your policies align with the company’s overall strategy? How will you show that your policies are aimed at attracting and retaining a talented pool of employees?
- How can your organization explain the potentials benefits of your policies to employees, shareholders, and other stakeholders?
DEI initiatives can help the organization strengthen its workplace culture and connect with the customer base. They can also have a positive impact on an organization’s bottom line.
For example, studies have shown that companies with greater diversity on executive teams have improved financial performance. This can help organizations make the case that a more diverse leadership fosters greater creativity and innovation.
DEI initiatives can help the organization strengthen its workplace culture and connect with the customer base.
2. Measure your results
You can’t achieve what you can’t measure. Set goals and timeframes to achieve desired results.
If possible, collect and analyze compensation data. Gauge employee satisfaction with surveys.
Review whether changes in hiring practices are having an impact. Involve legal counsel familiar with DEI initiatives to set up and process your data collection in a way that mitigates the risk of disputes in connection with your data collection or findings.
Do a deep dive to identify systemic and unconscious barriers to upward movement.
You can't achieve what you can't measure. Set goals and timeframes to achieve desired results.
3. Consider a renewed focus on your internal strategies
Some organizations have shifted their focus to internal strategies that may be less visible to outside stakeholders but still further DEI objectives.
Even if an organization decides to reduce its public-facing communications regarding its DEI initiatives, it can still ramp up its internal DEI efforts.
Consider reviewing your financial benefits or health benefits. Closely monitor your personnel practices, processes, and decisions to ensure members of all gender, racial, and ethnic groups get equitable treatment and equal opportunities.
Look for ways to remove unconscious bias from your hiring practices. Consider recruiting at an expanded number of universities or removing information from resumes that may prejudice hiring decisions.
Ensure that your policies comply with laws and regulations, including non-discrimination rules.
Resources, such as the ACC Foundation DEI Maturity Model, can help your organization determine what types of policies to focus on.
4. Focus on creating an equitable workplace
There are several ways organizations can expand the pipeline at the executive level.
Formal programs that provide support, advice, and mentorship can be an effective way to diversify leadership.
Every workplace has high-profile assignments that are career enhancing and low-profile assignments that are beneficial to the organization but not necessary furthering of an individual’s career.
Look for opportunities to make work allocation more equitable. Be transparent about how work is assigned.
Employee resource groups (ERGs) can provide employees with access to networks, social activities, and team projects. ERGs may support a focus group, but organizations can reduce risks by making them available to everyone.
Develop helpful, candid, and action-oriented performance reviews. Provide recognition and rewards for outstanding performance and accomplishment.
Formal programs that provide support, advice, mentorship can be an effective way to diversify leadership.
5. Seek outside help
When it comes to addressing the various issues related to diversity, equity, and inclusion, nobody has all the answers. Reluctance to seek external help becomes another issue.
If internal stakeholders in an organization work in silos to make things right, that’s a recipe for frustration, not progress.
To really move the needle, consider working with outside counsel, consultants, or other advisers who have expertise in developing meaningful corporate DEI initiatives, in order to successfully identify and address internal challenges and improve.
Disclaimer: The information in any resource in this website should not be construed as legal advice or as a legal opinion on specific facts, and should not be considered representing the views of its authors, its sponsors, and/or ACC. These resources are not intended as a definitive statement on the subject addressed. Rather, they are intended to serve as a tool providing practical guidance and references for the busy in-house practitioner and other readers.
