Companies Are Removing the “D” or “E” from DEI to Sidestep Criticism

Companies like Toyota and Ford have adjusted their DEI initiatives in response to criticism.

Following backlash from conservative activists against DEI programs, a majority of executives in a recent survey reported that their companies have reframed these initiatives, with less focus on racial diversity.

Among over 60 executives surveyed by the Conference Board, just over 50% said their companies had adjusted the terminology, while another 20% are considering similar changes. Many companies are now omitting the term “equity” due to its perceived controversy, noted Andrew Jones, senior researcher at the Conference Board’s ESG Center and co-author of the study.

Companies are “aiming to reduce exposure to scrutiny, legal challenges, backlash, and sensational headlines,” Jones said, adding that they are “shifting away from emphasizing specific demographic groups, especially around race.”

Shifting DEI Terminology
Over half of companies have adjusted diversity language in some form.
Source: Conference Board

After the murder of George Floyd in 2020, which spurred calls for greater minority opportunities, corporate America expanded its diversity, equity, and inclusion (DEI) programs. Conservative groups, however, have argued that hiring targets and training programs unfairly impact White workers, prompting companies like Toyota Motor Corp. and Ford Motor Co. to adjust their DEI initiatives.

The June 2023 U.S. Supreme Court ruling against affirmative action in universities has also led many companies to proactively review their policies. According to an April survey and a March roundtable discussion, over 60% of executives reported that the decision negatively affected their DEI efforts.

It remains unclear whether these terminology changes reflect actual program adjustments or are primarily intended to reduce controversy.

“We do see the fundamental work continuing, with the recognition that the inclusive workplace does have real business benefits,” Jones said. “But if you’re no longer focusing on specific groups, you’re kind of saying it’s fine air for everyone. Is that a positive development? Or does that actually slow down the vital progress?”

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