US companies are distancing themselves from controversial diversity, equity and inclusion (DEI) initiatives in the wake of the anti-Semitism row at universities, business consultants claim.
The wave of anti-Semitism on some of the country's most elite college campuses has reportedly further dragged the term DEI into a toxic political debate that companies now want to distance themselves from.
“Anything that smacks of a quota is out,” says Diana Scott of The Conference Board told Axios.
The focus shifts from “those three words” to efforts around “wellbeing and inclusivity,” Scott explains.
DEI had already attracted some high-profile critics from the business world, including Elon Musk and billionaire Bill Ackman.
Businessman Bill Ackman has been an outspoken critic of DEI initiatives
Tech billionaire Elon Musk called DEI 'another word for racism'
The policy, which often led to selective hiring of minorities or specific demographic groups to increase diversity, was strongly supported by Claudine Gay, Harvard's first black female president.
Gay, along with the presidents of UPenn and MIT, were called before a Congressional hearing in December to account for the rise of anti-Semitism on their college campuses.
During the hearing, Gay refused to categorize calls for genocide against Jews as harassment, or to concede that Jewish students had a right to feel safe in Ivy League schools.
Gay resigned as president of Harvard on Tuesday but did not apologize for his testimony.
The academic had been actively promoting a DEI agenda at the college and had herself been criticized for being underqualified for the role.
Republican presidential candidate Vivek Ramaswamy, a Harvard graduate, denounced Gay's appointment as “a thinly veiled exercise in race and gender.”
DEI has also been criticized by Harvard businessman and donor Bill Ackmanwho argued that this is “the root cause of anti-Semitism at Harvard.”
Ackman publicly sought Gay's removal after her disastrous testimony in Congress.
Harvard President Claudine Gay, along with the presidents of UPenn and MIT, were called before a Congressional hearing in December to account for the rise of anti-Semitism on their college campuses
Ackman publicly sought Gay's removal after her disastrous testimony in Congress
Republican presidential candidate Vivek Ramaswamy has repeatedly made overtures about the harms of DEI
Tech titan Elon Musk backed 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 subject.
“Because it discriminates based on race, gender and many other factors, DEI is not only immoral, it is illegal,” Musk said in a subsequent post on his X platform.
DEI, panned by conservative critics for promoting left-wing ideology in educational institutions and corporations, exploded in the corporate world after the 2020 race marches.
Last year's Supreme Court ruling striking down the use of affirmative action in universities has focused attention on diversity efforts in the business community.
Laws limiting the use of DEI policies in public schools have been introduced in Florida by Governor Ron DeSantis and in Texas universities by Governor Greg Abbott.
“DEI is better viewed as a symbol of discrimination, exclusion and indoctrination,” DeSantis said when he signed his bill last May.
Adding: 'And that has no place in our public institutions.'
Governor Ron DeSantis has declared Florida a 'wake to die' state
Companies are now trying to avoid recruitment programs that could come under legal scrutiny.
Companies are finding new ways to create diversity within their teams, like Blackrock which, according to Fortune, focuses on hiring for socio-economic diversity.
“Companies are really starting to look at other ways to do the work without saying they're doing the work,” says Cinnamon Clark, co-founder of Goodwork Sustainability, a DEI consulting firm.
Clark predicts that by 2024, companies will talk more about 'employee experience' or 'wellness', instead of focusing purely 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 disrupt DEI for businesses.
“With the ramped-up rhetoric of an election year, it's hard to imagine people actually wanting to stick their necks out anymore,” he said.
DEI has become a key battleground in the ongoing Republican nomination race, and will likely play a role in the primaries.
Ramaswamy has made repeated overtures on the policy and fellow Republican presidential candidate DeSantis has declared Florida a “wake to die” state.