Black Caucus issues new guidelines for DEI policies and urges firms to help reduce racial wealth gap

WASHINGTON — Corporate policies designed to promote diversity and inclusion in the workplace are legal and should be expanded to promote broad economic prosperity and reduce racial wealth disparities, according to a new report from the Congressional Black Caucus.

The report, released Monday, offers guidance to companies on best practices to advance diversity, equity and inclusion policies in the workplace and calls on companies to recommit to advancing racial justice in the workplace. The document also includes a roadmap for advancing wealth creation in Black communities and closing the racial wealth gap.

“In the wake of George Floyd’s death, corporations have pledged $50 billion to racial equity and DEI policies,” Rep. Steven Horsford, D-Nev., chairman of the Congressional Black Caucus, said in an interview. “DEI is under attack now, but the response from corporate America has been overwhelming.”

The findings follow a Open letter December The caucus called on companies to “reaffirm their commitment to DEI” and work with the CBC to deliver on promises on racial and economic inequality.

The study is the culmination of months of dialogue between the caucus and nearly half of the Fortune 500 companies, as well as academics and business analysts, to develop guidelines that advance DEI and Black economic mobility in an increasingly fraught political and legal environment. It cited companies that have faced a backlash over such policies from conservative activists and lawmakers.

Horsford condemned “far-right actors who are trying to intimidate corporate America” into moving away from DEI policies. He added that it was “wrong” for companies to rescind DEI policies because of the Supreme Court ruling in June to overturn affirmative action programs in university admissionthat did not directly relate to companies’ DEI policies.

“There is nothing in the law that is illegal or unconstitutional about companies adopting DEI policies. I applaud the companies that have answered our call. We are now providing a roadmap for what good looks like,” Horsford said, referring to the study’s title: “What Good Looks Like: A Corporate Accountability Report on Diversity, Equity and Inclusion.”

Since the Supreme Court ruling, there have been more than a dozen Republican attorneys general have sent letters Fortune 500 companies threatening legal action over DEI policies Earlier this year, GOP lawmakers in multiple states attempted limitations on diversity and inclusion efforts in the workplace, and conservative legal groups have directed lawsuits against organizations focused on advancing underrepresented groupsSome companies have have deviated from the DEI policies they once promoted after Floyd’s death.

DEI policies are official guidelines and programs designed to welcome people from diverse backgrounds into an organization and create a culture where they feel included to do their jobs. These policies can be as broad or narrow as an organization wants and can target any demographic.

Immediately following the Supreme Court ruling, the Democratic chairman of the Equal Employment Opportunity Commission, a federal agency that focuses on civil rights policy in the workplace, mentioned that the decision “fails to address employers’ efforts to foster a diverse and inclusive workforce or to engage the talents of all qualified employees.”

The study identifies 12 areas where companies can focus on expanding DEI and helping close the racial wealth gap, including workplace culture guidelines, data disaggregation, talent capabilities, retention rates, pay equity, and procurement policies.

The study invites companies to “work together legislatively” to develop laws that “create lasting accountability for business in America, help close this massive gap in inequality, and support our caucus’ values.”

Most of the companies that responded to the survey were in the manufacturing sector, followed by companies in the financial services and information sectors. Fifty CEOs spoke directly with the CBC, while companies also responded with other top representatives, letters and answers to questionnaires from lawmakers.

The CBC is one of the largest and most influential blocs in the Democratic congressional caucus. Its membership spans the ideological and regional diversity of the party, but shares a commitment to advancing the interests of black Americans, particularly in the areas of voting rights and economic mobility. House Minority Leader Hakeem Jeffries, D-N.Y., a member of the CBC, was involved in developing the report.

“It is no longer acceptable to deliver on promises without taking action,” the report said. “The killing of George Floyd, like the many other police-inflicted killings that came before and after it, shocked our community and ignited a fire of activism in parts of the country that might otherwise never have come forward. Most of these companies took advantage of that season of activism and publicly pledged to fight alongside us. Now is the time to hold these companies accountable.”