Was 2023 a Turning Point for Diversity, Equity, and Inclusion (DEI)?
In 2023, Diversity, Equity, and Inclusion (DEI) initiatives had unusually strong corporate pushback. It marked a turning point, both of contention and adaptation for DEI.
What does that portend for 2024?
Before answering that, it’s clear that despite the criticisms, DEI is not disappearing. It is, however, evolving to suit the market-which is the hallmark of a strategy. The growth of global workplace diversity underscores the need to find new strategies to now improve inclusion.
The Challenges
DEI was in the headlines last year for all the wrong reasons. The U.S. Supreme Court’s decision to limit affirmative action in higher education was also a significant setback, a ruling with broader implications for DEI in both the public and private sector. Indeed, Reuters reported that six U.S. firms modified their policies of improving racial and ethnic diversity in response to the [new] threat of lawsuits.
The DEI debate reached new levels of polarization, with Elon Musk openly critiquing (tweeting) DEI and other public figures challenging DEI, all of which triggered the re-evaluation of programs previously considered essential. This agitating for change has now resulted in retractions from some DEI commitments and raised concerns about its future in the face of growing opposition.
The Persistence
That said, DEI initiatives have also demonstrated remarkable resilience. That same Reuters report (2023) stated that among 19 major companies surveyed, including McDonald’s and Starbucks, none had any intention of changing their DEI policies. This was echoed by The Conference Board’s survey (2023), that Chief Human Resources Officers remained committed to DEI, revisiting their foundational goals and the business impacts of these initiatives. Law firm Littler Mendelson, which focuses on employment and labour law, recently completed a survey of more than 300 US C-suite executives. Fifty-seven percent said they grew their diversity efforts in 2023. Business leaders like Mark Cuban and companies such as Disney stood out for their defence of DEI, advocating for a broader and more inclusive approach to hiring and organizational culture. Cuban had posted “DEI is not an ‘ideology.’ It is a set of business processes that, when done well, makes a company more profitable.” He’s entirely correct.
There is substantial evidence to show that when organizations actually embed DEI into their corporate culture, they are better positioned to confront challenges, attract talent, and better understand what their consumer base says and expects them to do. One case in point: Inclusive Leadership Compass (ILC) research found that “Inclusive leaders with diverse teams are 20X more likely to exceed their business performance targets than non-inclusive leaders.” More than any one program or any single policy, it’s the culture. Companies that stitch DEI into their core also score higher as better places to work.
The Shift
It’s important to keep in mind that constraints can also lead to new possibilities. Learning from the challenges of last year, there is a noticeable shift towards inclusive environments, which only sharpens diversity efforts. That shift creates a higher sense of belonging ,providing a higher degree of psychological safety, both important elements for well-being and productivity. Research by Drs. Azadeh Shafaei and Mehran Nejati at Edith Cowan University stresses the point of developing inclusivity up, down, and across the organization. Shafaei writes, “Inclusive leadership is not just about embracing diversity. It is the art of weaving an extraordinarily rich tapestry of talents, ideals, and perspectives into the very fabric of organisational success.” Exactly right. A shift away from merely meeting diversity targets to building inclusivity that can strengthen engagement, retention, and overall business outcomes.
The Employee
Catalyst, a global non-profit focusing on workplace inclusion, had an interesting statistic from its survey. Nearly half the employees surveyed preferred that their company address diversity initiatives, stating both fairness and business benefits with a majority leaning towards fairness. This is inclusion.
It significantly increases willingness to stay in the company, which closely links to a managers’ inclusive behaviour. Any company concerned about retention should logically start at the top and instil inclusive behaviours throughout the organization, which again is part of the corporate culture. This creates a work environment where diversity more easily flourishes because of visible inclusion, which also positively impacts performance. The pillar of this strategy moves beyond performative gestures to inclusive practices, enabling all employees to feel valued and engaged. That sort of impact is easily measurable.
Conclusion: A New Beginning
All strategies require periodic updates and revaluations, or they’re not strategies, just ephemeral thoughts. Despite the obstacles in 2023, it’s a net positive for DEI. The way forward means using DEI as a strategic tool rather than an end goal. The obstacles DEI initiatives now face, show the tumultuous process of change.
Yet the persistence of companies, leaders, and practitioners to keep DEI moving ahead, despite the recent rancour, signals willingness to continue the trajectory of growing equitable and inclusive companies. The momentum towards a more inclusive approach points to a future where DEI will play a critical role towards the well-being of employees.
But looking forward, the attention towards actionable inclusion strategies will continue to transform DEI, with new parameters for the perception and implementation of diversity, equity, and inclusion in workplaces worldwide.
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Stay tuned as I delve into more ways to implement strategies that respect diversity and promote inclusion.
