Trump Isn't The Reason Why Corporations Are Dropping DEI
The honeymoon phase between Corporate America and DEI ended years ago; they were bound the break up
For a video breakdown of this article, you can watch this YouTube video.
Please Subscribe to the Channel!
Some Democrats are solely blaming Donald Trump for corporate America moving away from DEI.
The truth is that corporations have been wanting to move away from DEI for years and Trump became a convenient scapegoat.
The honeymoon phase of DEI ended a long time ago, they just didn't know how to officially separate from it.
Just like any relationship that you move too fast with, the emotions of the situation blind you from seeing the true character of your partner and you over-implement good faith translations of behavior to rationalize an inevitably doomed relationship.
You can also read this article and comment on this article on the new social media platform, Weave! Speak freely, build trust and gain friends.
https://hiweave.com/item/some-democrats-are-solely-blaming-donald
The DEI industry has existed for a long time in one form or another but in reaction to the nationwide high emotions of the moment post the death of George Floyd, corporate America decided to marry DEI initiatives in our nation's moment of grief.
Prior to 2020, most corporations didn't see the value in the initiatives of DEI and the practicality of fully adopting this shift in corporate culture.
It's not to say that corporations didn't want a diverse workforce, it's just that DEI in practice prioritizes diversity as a significant factor in employment instead of a convenient byproduct.
However, there was always a brewing industry waiting for the moment where this ideological framework could catch corporations on the rebound.
As far back as 2015, Consulting firm McKinsey & Company, published a foundational report called "Diversity Matters" which became the key business case that influenced corporate DEI throughout the 2010s.
The first inclination that this sudden marriage to DEI was destined to fail was because full adaptation of DEI by creating another department and C-Suite position as a Diversity Officer means raising financial demands for something that doesn't make money.
Visit www.xx-xyathletics.com/ADAM to shop through their top-quality athletic Women’s (XX) and Men’s (XY) clothing, ranging from t-shirts to leggings.
In response to my New York Post article, titled "Why the diversity-industrial complex bubble burst," I appeared on Varney & Co on August 7th, 2023. In this segment I made this statement, "I think within corporations, ultimately it's about the bottom dollar. And the reason I personally knew that this was going to be much of a fad within corporate America to some degree."
"It may not disappear completely, but it's going to drastically reduce itself. The reason being is because the DEI doesn't earn any money. And how do you actually rate the performance of diversity, equity and inclusion?"
What many people don't understand about DEI is that it's not just a couple of added training sessions, it's that in the largest corporations in America, it's a behemoth of a department that radically alters how they operate and what they spend their money on. Investing money on a department structure that yields no profits yet spends money like a gambler is destined to disappear, especially in an economic downturn.
Who even benefits from DEI? Most would presume that black people or other minorities are the primary beneficiaries of DEI positions in corporate America: They'd be wrong. White women benefit most from DEI because women are included in the diversity equation.
It's estimated that about 63%-76% of CDOs (Chief Diversity Officers) are white women; 3%-4% are black (Zappia). Ironically, DEI is a white dominated field even in the non C-suite diversity positions. The association SHRM's 2021 data showed 61% of DEI professionals were women, the vast majority white women.
The push to blame Donald Trump for DEI falling out of favor ignores the multitude of reasons why corporations fell out of love. Post-George Floyd, many corporations saw this as a public relations opportunity, throwing millions of dollars at any organization with "black" in its title and letting the world know about their alleged pledges.
What they didn't expect was that making their diversity initiatives public brings them more scrutiny, not less. It's generally in the best interest of a company to remain neutral, especially if they provide a product for the public. When you take a stance and announce it, you risk losing a portion of your customer base or attacks from adversaries.
Al Sharpton and other activists threatened a boycott against Target for their decision to drop all DEI initiatives and their racial equity program, which they pledged to invest $2 billion in black-owned businesses by the end of 2025. Their decision came January 24th, four days after Trump signed his executive order demanding the dismantling of DEI in the federal government.
However, Trump was the scapegoat in their decision making. Target has been the "target" of activists and boycotts for their stance on social issues and product choices.
In May 2023, the boycott stemming from their Pride Month collection contributed to a 5.4% drop in in-store sales and a 10.9% decline in online sales in Q2 2023, with CEO Brian Cornell acknowledging “negative guest reaction” as a factor.
Oh, and we can't forget the many lawsuits brought against corporations stemming from diversity practices. IBM, Starbucks, Novant Health, have all faced lawsuits involving some form of discriminatory action due to diversity initiatives.
And that's the final nail in the coffin of corporate DEI; it's legally questionable in practice. Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, and national origin.
The EEOC's Commissioner has stated publicly when replying to Mark Cuban's endorsement of diversity based hiring practices. "You’re dead wrong on black-letter Title VII law. As a general rule, race/sex can’t even be a ‘motivating factor’—nor a plus factor, tie-breaker, or tipping point. It’s important employers understand the ground rules here.”
Corporate America's relationship with DEI is coming to an end because the honeymoon phase is over and rationality is coming back to the forefront. There are way too many risks and financial burdens involved with these types of divisive practices to maintain this high-maintenance relationship.
Just like any trend, DEI came into prominence quickly and now it's going away just as fast. And that's not Trump's doing: Corporate America was ready for this break-up.
Good overview of DEI and how it has played a role in the corporate sector. Meritocracy has been resuscitated, long live meritocracy!
The irony is CRT/DEI has its roots in the thoughts of pasty old white men, most notably Herbert Marcuse from Germany. Angela Davis reportedly said she was radicalized twice in the 1960s, once by Marcuse and then by the Palestinian situation and thus the 'white privilege' was born. When there is an open door to discussion, I explain that Marx was observing the extremely harsh conditions of the workers in England where a large number of children were working by age 7. Understanding such harsh realities, Frederick Douglas wrote the Black man has one master while the working white has a collective. I explain this not to be expand victimhood, but to try and create unity of how lucky we all are for the progress we've made.