On November 25, 2024, Walmart announced it was rolling back its DEI (diversity, equity, and inclusion) policies. This follows similar moves—abandoning or revising DEI policies—by Ford, Harley-Davidson, Lowe’s, John Deere, Toyota, and others. Some of these companies have also ended their participation in the Human Rights Campaign Corporate Equity Index, which reports on policies related to LGBTQ+ employees. So, DEI may be dead, or on life support. Still, diversity lives, as I’ll explain.
Why diversity is a good thing
Even though DEI may be on the way out, the idea of diversity in the workplace is still worth considering. SCORE lists 10 benefits:
- Innovation (embracing differences of experiences, thoughts, and ideas leading to disruptive thinking)
- Ability to adapt
- Recruiting is made easier
- Employee retention
- A team characterized by a complex skills set
- Improves company reputation
- The best of both worlds
- Exit the echo chamber (obtaining a wide spectrum of opinions)
- Mirror the population you’re serving
- Aids in understanding potential customers and clients
Bottom line: diversity drives business success. Businesses embracing diversity have more revenue and make decisions faster. What’s more, employees want it.
Reverse discrimination
In an attempt to provide diversity, some businesses and organizations may face reverse discrimination claims by such groups as males or whites alleging discrimination based on their sex, sexual orientation, or race.
Background on reverse discrimination. The U.S. Supreme Court in 2022 weighed in on reverse discrimination in a case brought by students against Harvard and the University of North Carolina. The Court said both schools’ admission programs violated the Equal Protection Clause of the 14th Amendment in the U.S. Constitution. Their race-based policy did not meet standards previously set by the courts: (1) they must meet strict scrutiny, (2) may never use race as a stereotype or negative, and (3) must—at some point—end. How does this relate to business? Title VII of the federal Civil Rights Act says no business can discriminate against employees or customers. And there are other federal laws against discriminating on the basis of age or disability.
Examples of reverse discrimination lawsuits.
- A class action lawsuit against Gannett Co. (publisher of USA Today and more) alleging reverse discrimination (e.g., a suggestion not to hire any more straight White males) was dismissed because the court found that the company did not have any quotas or any requirement for prioritizing race over merit.
- The U.S. Supreme Court in October 2024 agreed to hear the case of a female heterosexual employee who claimed she was discriminated against in favor of employees identifying as LGBTQ+. A decision could come anytime between now and the end of June 2025.
Final thoughts
“Strength lives in differences, not in similarities.” ~ Stephen R. Covey, author of The 7 Habits of Highly Effective People
Diversity in the workplace can provide many benefits for your business. But caution should be exercised not to forgo merit in favor of diversity numbers for their own sake.
