Regressing or Refocusing? Understanding Corporations' Decisions to Cut DEI Efforts
The killing of George Floyd by a police officer sparked what many have labeled as a social justice awakening in our country. This reckoning prompted brands and organizations to publicly declare their allegiance to ensuring marginalized communities had access to resources and support to create a more equitable society. From the Black squares on social media to show solidarity, to donations to support social justice causes, these companies openly acknowledged their part in perpetuating systemic racism and took a stance to make a difference.
Unfortunately, that commitment didn’t last. Less than four years after very public statements about commitment to eradicate social injustices, that we’re seeing many Diversity, Equity and Inclusion positions that were created to help fill the gap are now being systematically eliminated. So, do companies no longer care about creating inclusive environments or was it just lip service to placate Black communities?
According to ABC News, DEI roles increased by 55% following the social justice movements of 2020 – 4 years later, those roles and initiatives continue to be cut. We know that businesses who are intentional about their DEI efforts are more innovative and their team members are more likely to be satisfied with their work. They’re also more likely to appeal to larger audience, which ultimately contributes to greater financial performance. Brands like, Ben & Jerry’s and Target have publicly supported Black businesses and issues impacting those communities through their partnerships and addressing issues and as a result, Black consumers have come to appreciate these companies and their commitment to racial issues.
That appreciation apparently has not been enough. Companies like Zoom, Snap, Meta, Tesla, DoorDash and Lyft are cutting back their DEI jobs, raising doubts about the sincerity of their commitment to advancing these initiatives in the workplace. Some organizations have cited cost-cutting measures, while others have cited their shifts in priorities, but one must question whether this change is due to the perception that addressing issues affecting Black communities is no longer seen as trendy or fashionable.
Critics politicize diversity, but inclusion isn't divisive—it's essential for workplace culture and brand loyalty. Neglecting DEI means disengaged employees and disillusioned consumers. It is this connection that contributes to brand loyalty, appreciation and ultimately, financial performance.
So, what will happen when more companies stop investing in their DEI efforts? Employees will feel less engaged, and consumers will be less inclined to patron businesses who don’t support issues important to them. This disconnect will have a devastating impact on workplace culture and overall business performance. Brands who are intentional about inclusion will continue to grow and those who don’t will scramble to keep up with consumer expectations.
As more organizations abandon their commitments to DEI initiatives, it’s one thing that’s clear to Black communities – these companies simply do not care about the issues impacting them. What these companies fail to consider is the buying power of Black millennials who is expected to reach $1.8 trillion by this year. These consumers are demanding more from the brands they patron and those demands don’t include walking back on commitments of support. Ultimately, no one is surprised that it is no longer convenient for organizations—it's simply the lack of regard for the Black community that is alarming.
