DEI is divisive and dynamic. Here is what's next.

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DEI is divisive and dynamic. Here is what’s next.

October 28, 2024

1. After almost a year of anti-DEI rhetoric and backlash, where do we stand?

With many news headlines highlighting DEI cutbacks and the “anti-woke” narrative, it can be challenging to discern between clickbait and constructive criticism.

In this newsletter, we discuss the current state of the dialogue, considerations for ongoing employee engagement, and how strategic communicators can prepare their organizations for the future.

What’s happening:

Several Fortune 500 companies, including Ford, John Deere, and Lowe’s scaled back their DEI commitments in response to anti-DEI activists like Robby Starbuck.
Other companies, including Jack Daniels’ parent company Brown-Forman, scrapped them entirely following “anti-woke” boycotts (which, following an ad featuring a transgender influencer, cost Budweiser’s parent company 13% of U.S. revenue).
On the flip side, CEOs of companies like JPMorgan Chase, Cytokinetics and e.l.f. Beauty have asserted that DEI is a business driver, and advocates including NAACP, National Organization of Women, Human Rights Campaign and others have issued statements in defense of DEI.

Why it matters: Research consistently demonstrates that diverse and inclusive teams are more innovative and achieve higher profitability. At a time when stakeholders are increasingly divided, companies will need to define an approach that best supports their business goals.

What’s next: We are seeing more nuanced, less publicized approaches to DEI emerging. Strategic communication is crucial to engage key stakeholders, maintain trust in an organization’s commitments, and safeguard reputation.

2. Take stock: What are stakeholders saying?

The big picture: In a hyper-politicized environment, with just 11 days until the presidential election, many employers, civil rights advocates, and employees are standing firm: DEI is good for business.

What employers are saying:

In September, JPMorgan Chase CEO Jamie Dimon said: “It’s good for business; it’s morally right; we’re quite good at it; we’re successful,” speaking about the company’s outreach to minority groups. (Dimon also clarified that he’s not “‘woke.”)
Robert Blum, president and CEO of Cytokinetics, earlier this month said, “We cannot ensure the health of our population by taking a one-size-fits-all approach. We are a diverse nation with different health needs, and our health care system must reflect that.”
“Today, more than ever, diversity is essential for strong corporate governance,” said Tarang Amin, chairman and CEO of e.l.f. Beauty, surrounding the launch of the Not-So-White Paper, which underscores the business case for diverse boardrooms.

What civil rights leaders are saying:

The NAACP, the National Organization for Women, the League of United Latin American Citizens, Asian Americans Advancing Justice and the Human Rights Campaign Foundation issued an open letter to leaders of Fortune 1000 companies. The letter cautioned that “abandoning DEI will have long-term consequences on business success.”
The Congressional Black Caucus Foundation called for continued action through its Corporate Accountability Report on Diversity, Equity and Inclusion.

What employees are saying:

61% of adults think DEI programs in the workplace are “a good thing,” according to a 2023 Washington Post-Ipsos poll.
72% of LGBTQ+ workers reported that a rollback of their employer’s DEI efforts would make them feel less included or accepted.

4. To sustain employee engagement, lean into proven approaches that foster inclusion.

Companies with diverse and inclusive workplaces are 8 times more likely to achieve better business outcomes. DEI fuels creativity and helps meet the demands of a market where demographics are changing rapidly.

As organizations refine their DEI strategies, experts emphasize the importance of inclusive workplaces where employees are seen and heard.

Mentorship: Employees with formal mentors are 75% more likely to believe their organization offers a clear career development plan.
Employee affinity groups: Companies have started to compensate leaders of employee affinity groups with pay, time, and stock – recognizing their critical role in fostering belonging.
Mental health: Deloitte’s 2024 Women at Work survey highlights the growing concern around mental health in the workplace. Communicating openly about mental health and reducing stigma can build trust.
Allyship: Allyship involves actively supporting, amplifying, and advocating for others. Successful allyship programs bridge education and action, giving companies a competitive advantage.

What’s next: Some companies have partnered with organizations like Seramount to measure inclusion and belonging through employee sentiment surveys, and then use the data to tailor their approaches.

5. Here’s what strategic communicators should know.

Even companies that double down on their DEI initiatives should acknowledge that long-term success will require continuous learning and adaptation.

At Global Gateway Advisors, we partner with clients to understand the landscape and determine when and how they can show up for stakeholders in a meaningful way.

Go deeper:

Prioritize your audiences’ needs: Collect data that will shed light on employee, consumer, and stakeholder sentiment.
Evaluate language: Explore whether alternative language approaches are needed to advance your business/organizational goals.
Mitigate risk: Shape an issues management strategy that helps your organization prepare for potential legal or external pressure.
Focus on inclusion: Develop communications and programs that ensure employees feel they belong and that all viewpoints are heard, respected, and valued.
Demonstrate commitment: Transparently share progress updates on DEI to build trust and bring more people along.
Stay informed: The DEI landscape changes daily. Establish monitoring and insights processes to help your organization think ahead.

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