Dee Marshall

The Evolving State of DEI

Dee Marshall

CEO & Managing Partner, Diverse & Engaged

Diversity, Equity, and Inclusion (DEI) has undergone a significant transformation over the years, particularly since The Diversity Tipping Point, the period beginning May of 2020 when the United States was amid a global reckoning of racism against Black people. Initially, DEI was defined to address surface-level matters related to diverse representation, equitable compensation, and inclusive work environments where all people were welcomed, seen, valued and respected. However, in today's context, DEI has become a politicized umbrella term reference focusing largely on race-based programs, initiatives, and efforts intended to correct years of systemic racism and level the playing field for historically marginalized groups.

DEI in academia was once synonymous with affirmative action, which was overturned in 2023. Similarly, DEI efforts in the realm of minority-owned businesses, such as the Minority Business Development Agency (MBDA) and the 8(a) program, find themselves attached to broader debates and controversies. Non-governmental organizations (NGOs) are encountering funding challenges, with programs serving Black communities coming under scrutiny. Organization leaders have been advised to remove references to Black people and broaden their target demographics. Despite the absence of explicit laws or bans against DEI in the commercial sector, alarming trends have emerged across various sectors:

Over 100 anti-DEI bills have been passed in 30 states, indicating a concerted effort to undermine DEI initiatives.
First Amendment rights are being challenged, particularly regarding discussions and activities related to DEI.
Corporations, under pressure from corporate counsel, are canceling DEI programs and terminating DEI staff, signaling a trend toward precautionary action.
Government programs like the MBDA are opening to all races, diluting the focus on historically marginalized communities and putting programs like the 8(a) program in limbo.
Some officials are calling for a cease and desist on DEI efforts, further exacerbating the challenges faced by DEI advocates.

The impact of these actions is profound and far-reaching, affecting various aspects of society:

Jobs are at risk as DEI initiatives face opposition and funding cuts.
Psychological safety in the workplace is compromised as DEI discussions become contentious.
Small businesses, particularly those owned by minorities, are at risk of losing support and opportunities.
Public-private partnerships and funding for DEI programs are in jeopardy, hindering progress in addressing systemic inequalities.
The pipeline to jobs for college students from underrepresented backgrounds is threatened, potentially perpetuating cycles of exclusion and marginalization.

From Critical Race Theory to DEI the complex power struggle has unfolded. In June 2023, Republican Attorney Generals from Alabama, Arkansas, Indiana, Iowa, Kentucky, Mississippi, Missouri, Montana, Nebraska, South Carolina, Tennessee, West Virginia sent a letter to Fortune 100 CEOs to cease and desist, labeling “diversity, equity, and inclusion” illegal. In response, Democrat Attorney Generals from Nevada, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington sent a letter to Corporate CEOs reminding them of their obligation as employers under federal and state law, clarifying intent of the law is to address racial disparity, reduce racial inequities, and expanding opportunity for all.

The EEOC issued a statement affirming, “It remains lawful for employers to implement diversity, equity, inclusion, and accessibility programs that seek to ensure workers of all backgrounds are afforded equal opportunity in the workplace.” The Congressional Black Caucus (CBC) responded to Corporate CEOs, reminding them that they pledged over $50 billion three years ago for undoing years of oppression in which they have been active participants. Corporations were asked to reaffirm their commitments to DEI and reiterate their dedication to upholding these values in their daily decision-making processes. “We are troubled that some corporations that made pledges in 2020 have taken several steps in the opposite direction. The business case for DEI has never been more evident; research makes clear that corporate DEI efforts improve profitability and performance,” said the CBC.

In March of 2024, we met with Senator Schumer, Majority Leader of the United States Senate and Kristen Clarke, Assistant Attorney General of the Department of Justice, to highlight the importance of engaging with public officials to share insights, observations, and the impact of anti-DEI movements. This underscores the collective responsibility of all branches of government, as well as the role we have as Black women leaders, to advocate for and protect the interests of our community in the face of evolving challenges to DEI.

In navigating the evolving state of DEI, several strategies emerge as potential paths forward:

It is crucial to tell the story of DEI from a social and cultural context, reclaiming the narrative to counter attempts to gaslight or deny the original purpose and intent of the EEOC and the early years when employment discrimination cases triggered the establishment of DEI.
Engaging with funders to understand changes and requirements for remaining partners in DEI initiatives is essential. Adapting initiatives to match corporate language found in press releases, annual reports, and Environmental, Social, and Governance (ESG) reports can help maintain alignment and support.
Leveraging consumer power, particularly the estimated $1.7 trillion buying power of Black communities, can influence corporate and government actions in support of DEI.
Escalating concerns to elected officials and those in power is necessary to hold the opposition accountable and ensure the protection and advancement of DEI initiatives.

In conclusion, the evolving state of DEI reflects broader societal shifts and challenges, requiring adaptive strategies, collective action, and advocacy to ensure progress toward a more inclusive and equitable society. By understanding the dynamics at play, engaging with stakeholders, and advocating for meaningful change, we can navigate and shape the future of DEI in a rapidly changing world.