Diversity, Equity, and Inclusion (DEI) initiatives toriginating out of the Civil Rights Act of 1964, then gained traction following George Floyd's murder in 2020 as organizations sought to address systemic racism. Despite their intentions to foster diverse work environments that reflect societal demographics—encompassing not just race but also gender identity and sexual orientation—recent pushback has prompted many corporations like Ford and McDonald's to reconsider or abolish their DEI programs due to perceived legal risks.
While critics argue that merit should be the sole criterion for employment decisions, supporters contend that effective DEI efforts enhance organizational performance by broadening access opportunities rather than enforcing quotas.
"The point of diversity and inclusion is that companies, the government, universities, all do better when there are diverse participants in management and throughout the enterprise." Michael Posner, director of the NYU Stern Center for Business and Human Rights. "
Research backs this up and indicates companies with higher diversity levels often achieve better financial outcomes and provide a strategic advantage that drives innovation and improves overall business success.
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In one noted study, McKinsey found that companies in the top quartile for the gender diversity of their boards of directors are 27% more likely to outperform financially than those in the bottom quartile.
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In separate research, the consulting firm in 2024 found that women's representation at work over the past decade has increased at every level of corporate management — women today make up 29% of C-suite level positions, up from 17% in 2015.
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What has DEI — diversity, equity and inclusion — done for U.S. workers and employers?
President Trump has painted a bullseye on diversity, equity and inclusion. But what exactly is DEI, and what has it achieved?
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