DEI Under Pressure

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ESG Backlash

DEI Under Pressure

28 October 2024 / Report

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Corporate diversity, equity & inclusion (DEI) efforts in the US face increasing political, social, and legal challenges, although the underlying business case for DEI remains relevant. This report examines the future of DEI in corporate America, focusing on how it may evolve across the workplace, marketplace, and public space amid ongoing challenges and emerging opportunities.

Key Insights

Over 60% of executives view the current political and social climate for corporate DEI as very or extremely challenging, with most anticipating continued or escalating pushback due to growing scrutiny from agencies, lawmakers, shareholders, and activists.
Despite the adverse climate, fewer than 10% of firms plan to reduce DEI resources over the next three years, reflecting a continued recognition of diversity’s business value in driving innovation, market adaptability, and competitiveness.
More than half of surveyed companies have revised their DEI terminology to downplay specific demographics and mitigate political and legal risks, though doing so abruptly without clear explanation may lead to reputational challenges.
The future of DEI will be shaped by aligning strategies more closely with core business objectives, carefully navigating political and legal challenges, adopting inclusive messaging, investing in innova

Authors

Andrew Jones, PhD

Principal Researcher, Governance & Sustainability …
The Conference Board

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Lindsay Beltzer

Lead Program Producer, Governance & Sustainability…
The Conference Board

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