企業のDEI戦略撤退の現状と将来[CNBC]

**Diversity, Equity, and Inclusion (DEI)** is a term you've probably heard quite a bit. DEI. DEI. DEI. DEI. DEI. DEI is representation. It's the number of people in an organization that mirror the labor force availability. The idea is to **change the system**. 

The police killing of George Floyd and the subsequent protests became a tipping point for companies across America. Fortune 1000 companies publicly acknowledged the importance of racial diversity, pledging $340 billion to promote change. But that is starting to change. The commitment to DEI appears to be wavering. Deere is pulling back from DEI measures, and many technology companies have made significant cuts to their DEI programs. Lowe's is the latest company to scale back its DEI efforts. 

Major companies, including **Harley-Davidson, Tractor Supply Company,** and **Polaris,** have pulled back or changed their DEI policies in response to growing conservative pressures, uncertain economic conditions, and the politicization of these practices. A new player in the marketplace is the **conservative consumer**, who has awakened to the idea that many companies are divorced from the concept that customers are king. 

However, DEI advocates argue that this retreat may be overstated. Is it the normal ebb and flow of social initiatives, or is there a deeper shift in corporate culture? DEI is about **diversity and representation**—the number of people in the organization who reflect the broader labor force. When faced with growth opportunities, we are often told, "Think bigger." But you, your existing team, and your current structure can't think bigger without new perspectives. That's what **leading bigger** is all about—widening your perspective by including others.

Despite these challenges, a 2024 study found that 75% of U.S. executives highly prioritize DEI, and these leaders are becoming more vocal about their support. In a letter to shareholders, **JP Morgan CEO Jamie Dimon** said that DEI initiatives drive **inclusivity, innovation**, and stronger **financial performance**. Mastercard's chief administrative officer also emphasized the company’s continued commitment to **equality** and **fairness**.

Diversity among CEOs is also improving, with more women, Black, Asian, and Latino leaders in the role since 2019. However, over 70% of leaders still tend to select protégés of the same race and gender. We tend to gravitate toward the familiar, but in today's world and tomorrow's future, comfort means stagnation. If you look around a room full of white males and you're trying to sell products to a diverse marketplace, you may not succeed without diverse thinking.

DEI advocates point to several key benefits: **improved innovation, recruitment**, and **company reputation**. As one advocate puts it, "We don't want people to figure out how they fit in—we want to help them figure out how they stand out." In 2023, more than 75% of companies in the S&P 500 used DEI metrics to determine the pay of CEOs and other C-suite executives. Still, less than half of U.S. corporate employees believe their executive teams reflect the diversity of their workforce in 2024.

One challenge with diversity initiatives is getting shareholders on board, especially when the impact is hard to quantify. The argument is that **everything doesn't have to be quantitative**. In our society, if you can't measure it, it doesn't seem to matter. Yet there are several metrics that show the **power of inclusion** in the workplace. Companies with more inclusive practices are 70% more likely to generate revenue from **innovation** (new products and services). They also have a 70% higher likelihood of capturing new markets, and they see better **team performance** and **collaboration**. Perhaps most importantly, in an era of fierce talent competition, they face **lower attrition risks**.

In recent years, DEI efforts have faced increasing pushback. More than 100 bills have been introduced across 30 states to restrict these initiatives. Many executives are also wary of taking public stances on social issues due to potential **legal risks**. A study shows that 9 in 10 executives believe that taking a public stance on social issues is riskier than staying silent.

The frustration of many Americans, particularly conservatives, is clear: they're tired of the "divisive, woke" culture. They simply want to exist in the marketplace without being caught up in social debates. Recently, major companies like **Tractor Supply**, **John Deere**, **Harley-Davidson**, **Ford**, and **Lowe's** have scaled back their DEI policies. 

Interestingly, these companies were once considered some of the most trusted brands by conservative consumers. With the rise of **activist Robby Starbuck**, who has over a million followers on social media, conservative consumers are now more empowered to voice their opposition. This shift provides companies with a clear **financial incentive** to reconsider their DEI positions.

Many organizations were only pursuing DEI because it was the socially acceptable thing to do, not necessarily because they saw it as a critical part of their business success. As a result, some executives are scaling back their commitment to DEI. U.S. companies spend an average of **$8 billion annually** on DEI initiatives. Training costs can range from a couple thousand dollars to well over a million, depending on the company size. But many large companies have found that DEI programs often bear little fruit. **Budgets for DEI initiatives are being cut.**

Despite this, **business leaders** generally remain supportive of DEI initiatives. However, **shareholders** and **board members** are less likely to prioritize them. The board’s responsibility is to protect shareholder interests, and many are now recognizing that **neutrality** on divisive social and political issues may be the key to long-term success.

A study found that while only 20% of U.S. companies plan to cut or eliminate DEI initiatives in 2024, the landscape remains complex. Many organizations still view DEI as essential for business success. As one industry leader notes, “This work goes in waves. Sometimes things are quiet, and you can just work the system. But now, it’s a hot topic.”

The **DEI pullback** may be overstated, as many organizations continue to double down on their commitment. However, there are clear risks for those who take public stances on social issues. Companies that avoid taking sides may be the ones that win the future. After all, there’s no reason we need to know the political views of a **diaper company**. Our values of **liberty** and **justice for all** should guide us toward a world that works for everyone.