DEI Under Fire: What’s Actually Changed (and What Hasn’t)

DEI Is Still Legal — Here’s What’s Actually Changed

Diversity, equity, and inclusion (DEI) initiatives have come under scrutiny in recent years, but the legal landscape hasn’t changed as dramatically as one might expect given the current climate. While DEI has generated political controversy, the framework can still bring value to employers who hope to diversify their workforce, uphold employee retention rates, and foster cultures of belonging. We’ve all seen the negative headlines about DEI, but it’s still legal to implement these programs, despite the political changes of the past few years.

What the Law Actually Says About DEI

According to employment attorney Aislinn E. Sroczynski of Royer Cooper Cohen Braunfeld LLC, DEI initiatives still have a place in the corporate workspace, “so long as they are approached thoughtfully, lawfully, and with genuine inclusivity.” She contends that companies don’t need to abandon their DEI programs; instead, they “should still be authentic in their positions…” and that “…there is ample evidence to suggest that companies that maintain strong DEI programs provide companies with competitive advantages.” Meanwhile, there are costs to rolling back or outright eliminating the programs, as some organizations have learned. “Companies that have rolled back their programs…have faced public backlash,” Sroczynski states, underscoring the precarious position that many firms now find themselves in.

The Real Cost of Rolling Back DEI

The ramifications of DEI rollbacks can be severe. There are serious reputational risks that can affect everything from consumer sentiment to sales. For example, Target has found itself in the midst of an activist investor revolt, in part because it stepped away from DEI. In fact, Target actually lost 17% of its stock value partly due to the DEI quagmire. While it might seem smart to abandon DEI in the short-term, the fact is that DEI still has value, and the downsides to ending those programs may outweigh the pros.

The Business Case for DEI Still Holds Up

DEI is more than just a commitment to diversity that upholds a company’s values; it also provides tangible value that firm leaders should consider. In fact, Harvard Business School’s Institute for Business in Global Society highlights that “77% [of executives] link DEI with improved financial performance” and “76% of workers are more likely to stay with an employer who supports DEI.” Given the talent crunch in the accounting industry, few firms can afford to lose people. Whether augmenting financial performance or strengthening employee retention efforts, there is still a clear business case for DEI initiatives in accounting.

What a Lawful DEI Program Looks Like in Practice

So what does a lawful DEI program actually look like? In practice, firms can keep mentorship, sponsorship, and leadership development initiatives by opening them to all employees, and can continue broadening recruiting pipelines, while retiring diversity-based interview slate requirements and identity-based considerations. It’s possible to continue driving your DEI program forward, even in spite of the current political climate. DEI isn’t illegal, and it pays to stand behind it. As a marketer, I’m still championing DEI, and so should you.

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William Ratliff is a Proposal Specialist at Johnson Lambert LLP, where he oversees the firm’s proposal process from start to finish, coordinating with partners and subject matter experts to deliver polished, on-deadline submissions. He brings a background spanning business development, operations, and client-facing writing to his work today, with a continued focus on clear, strategic communication.