In the last few months, a number of major companies and organizations have made public declarations that they are ending Diversity, Equity and Inclusion (DEI) programs. Among those unceremoniously dumping DEI are mega brands like Walmart, Harley Davidson, Brown-Forman, Lowe’s and John Deere. The movement to abandon DEI has spread to state-run public university systems in Florida, North Carolina, Texas and Wyoming. Even the Society of Human Resource Management has shifted its approach, expunging Equity from its recommended framework and suggesting HR teams can avoid societal backlash by adopting a streamlined I&D approach.
DEI is not the only acronym under siege. CSR (Corporate Social Responsibility) and ESG (Environmental, Social and Governance) are also in rough waters thanks to some of the same political, social and economic pressures. CSR and ESG initiatives are being hit from multiple sides. Some groups attack these corporate efforts as greenwashing. Others lodge complaints about the cost and viability of various corporate campaigns, like achieving net zero goals in relatively short time frames.
Much of the DEI, CSR and ESG furor comes from allegations that these programs represent Woke ideology — that these initiatives emanate from how coastal elites believe the world should be run. We are experiencing push back against a pendulum that some believe has swung too far socially and politically. While some efforts may have overstepped what the majority of people in the U.S. support, the pendulum is now swinging far in the other direction. This presents a major challenge for C-Suites and communications teams across a broad spectrum of organizations. Achieving balance is difficult in the current environment.
Is the best solution to complaints by key stakeholders about DEI, CSR and ESG the wholesale elimination of the programs? That appears to be the answer that some organizations have reached. Does this indicate that the underlying commitment to these programs in the first place was nothing more than window dressing? Was there a perceived need to form a taskforce and issue a press release? Was action taken to placate stakeholders who had raised concerns on the other sides of these issues?
Before DEI, CSR and ESG had entered our vocabularies there was a goal among many companies to be perceived as a “Good Corporate Citizen.” How this was defined was largely left to the organizations themselves, but it provided a way to address stakeholder concerns. Soon there were demands for accountability. With accountability came measurement. And with measurement came a focus around certain critical issues. The acronyms soon followed. For better or worse.
As the pendulum swings and pressure mounts to abandon these initiatives, now is a good time to stop and reflect. Remember:
DEI is about people.
CSR is about community.
ESG is about the planet.
Are people, community and planet important to your organization? Do your stakeholders care about these things? Do your customers have expectations about how your company acts in each of these areas?
For nearly every organization the answer to these questions is a resounding yes. Still, the pendulum is swinging and C-Suites feel the pressure to appear less Woke. Some CEOs question the reasons for adopting DEI, CSR and ESG standards in the first place.
As you head into 2025 now might be the perfect time to focus on your corporate mission, vision and values. Bringing alignment between corporate policy and actions in the market can help reduce wild swings of the pendulum. A commitment to Good Corporate Citizenship anchored in core beliefs doesn’t rely on buzzwords or acronyms. This approach can provide a safe space for companies to take on important issues, fostering stakeholder engagement and trust, while helping to boost business performance.