American companies are distancing themselves from controversial diversity, equity and inclusion (DEI) initiatives in the wake of the anti-Semitism controversy at universities, management consultants claim.
The spate of anti-Semitism on some of the country's most elite college campuses has reportedly drawn the notion of DEI further into a toxic political debate that companies are now seeking to distance themselves from.
“Anything that smells like a quota is out,” the Conference Board’s Diana Scott told Axios.
The focus is moving away from “those three words” to efforts around “wellbeing and inclusion,” Scott explained.
DEI had already attracted some high-profile critics from the business world, including Elon Musk and billionaire Bill Ackman.
Businessman Bill Ackman has been a vocal critic of DEI initiatives
Tech billionaire Elon Musk called DEI “another word for racism”
The policy, which often involves targeting minorities or certain demographic groups to increase diversity, was strongly pushed by Claudine Gay, Harvard's first black president.
Gay, as well as the presidents of UPenn and MIT, were asked to account for the rise in anti-Semitism on their college campuses before a congressional hearing in December.
During the hearing, Gay refused to classify calls for genocide against Jews as harassment or to acknowledge that Jewish students have a right to feel safe at Ivy League schools.
Gay resigned as Harvard president on Tuesday but did not apologize for his statement.
The academic had actively pushed a DEI agenda at the university and was herself criticized for being underqualified for the role.
Republican presidential candidate Vivek Ramaswamy, a Harvard graduate, condemned Gay's appointment as “a thinly veiled exercise in race and gender.”
DEI was also criticized by businessman and Harvard donor Bill Ackman, who argued that it was “the root cause of anti-Semitism at Harvard.”
Ackman publicly advocated for Gay's removal after her disastrous testimony before Congress.
Tech titan Elon Musk supported Ackman, writing, “DEI is just another word for racism. Shame on anyone who uses it,” in response to a 4,000-word essay by Ackman on the topic.
“DEI is not only immoral but also illegal because it discriminates based on race, gender and many other factors,” Musk said in a subsequent post on his X platform.
DEI, seen by conservative critics as pioneering a left-wing ideology in education and business, exploded across the corporate sphere following the 2020 election marches.
Harvard President Claudine Gay and the presidents of UPenn and MIT were asked to account for the rise in anti-Semitism on their college campuses before a congressional hearing in December
Ackman publicly advocated for Gay's removal after her disastrous testimony before Congress
Republican presidential candidate Vivek Ramaswamy has repeatedly pointed out the disadvantages of DEI
Last year's Supreme Court ruling striking down the use of affirmative action at universities has drawn attention to companies' diversity efforts.
Laws restricting the use of DEI policies in public schools were introduced in Florida by Gov. Ron DeSantis and at Texas universities by Gov. Greg Abbott.
“DEI should be viewed more as a symbol of discrimination, exclusion and indoctrination,” DeSantis said when signing his bill last May.
Adding: “And that has no place in our public institutions.”
Companies are now trying to avoid hiring programs that could attract legal scrutiny.
According to Fortune, companies are finding new ways to create diversity in their teams, such as Blackrock, which focuses on hiring for socioeconomic diversity.
“Companies are really starting to look for other ways to get the work done without saying they’re doing the work,” said Cinnamon Clark, co-founder of Goodwork Sustainability, a DEI consulting firm.
Gov. Ron DeSantis has declared Florida a state where “the woke will die.”
Clark predicts that in 2024, companies will talk more about “employee experience” or “wellness” rather than focusing solely on diversity.
Kevin Delaney, co-founder of Charter, a research firm focused on the future of work, believes the increasing intensity of national politics will also bring DEI to a halt for companies.
“Given the over-the-top rhetoric of an election year, it’s hard to imagine people really wanting to stand out more,” he said.
DEI has become a key battleground in the ongoing Republican nomination race and is likely to play a role in the primaries.
Ramaswamy has made repeated overtures on politics, and fellow Republican presidential candidate DeSantis has declared Florida a state where “the woke will die.”