Attacks on Diversity are Attacks on Free Enterprise

We are facing an unprecedented threat to our freedom: our freedom of speech, freedom of religion, and our right to free enterprise.

Many of these attacks are being dressed up in the false clothing of “anti-DEI.” These anti-DEI efforts claim to stop what some consider “reverse discrimination,” yet they do the exact opposite. They are attacking the fabric of diversity that truly makes our country great.

Limiting diversity and equity efforts within companies only limits their ability to make choices based on what the market and their organization needs. As long as companies are operating within the law, dictating business practices is a violation of their freedom of speech. Despite the noise and misinformation, it is legal for companies to focus on diversity and equity. Restricting diversity and equity initiatives limits the full scope of what businesses can achieve and ultimately holds back our country’s full economic potential.

Despite the attacks, we have the numbers on our side. Those that actually care about the success of businesses- the key stakeholders that drive growth- fully support diversity and equity within companies.

Let’s consider each of the major stakeholders in turn:

Customers

Customers are firmly on the side of equitable impact, as I explored in my book, The Social Impact Advantage. Customers want to buy from companies that care about them and their communities. The last several months have been a prime example of what happens when companies turn their backs on their values and their customers.

When Target capitulated and rolled back their diversity and equity commitments, customers were not happy. They staged a boycott, and foot traffic dropped week-over-week. Now, senior management is scrambling to try and stem the fallout.

Costco, in contrast, stood firm with its values and benefited, happily welcoming those customers who felt neglected by Target.

Customers clearly support diversity and equity. Companies that choose not to live up to their values or go back on commitments will only lose out in market share.

Employees

As the workforce diversifies, companies that can offer a welcoming and inclusive environment will attract the best talent. Data has shown, over and over, that employees are looking for a place to work that aligns with their values.

Marriott was another company that stuck to its values and resisted pressure to eliminate its supportive and inclusive workforce. It took heat for its public stance, but it also received an outpouring of support from its employees. When the CEO mentioned that he was struggling with his stance, given how it could expose the company to legal threats, he received over 40,000 messages from his staff affirming that his decision was the right one.

Employees clearly support diversity and equity. Companies that do not will not be able to attract the best talent.

Shareholders

Often, customers and employees can be dismissed as less important stakeholders than what is seen as the most important group: The owners of the company. The shareholders. Business decisions are frequently justified on the basis that it will boost shareholder value.

In this case, shareholders are fully aligned with diversity and equity. Over a dozen anti-DEI proposals were on the agenda in shareholder meetings this year, and all have been voted down, all by overwhelming margins of about 98% to 2%. These votes have happened at major Fortune 500 companies, too: American Express, John Deere, Pfizer, Visa, and more.

Shareholders are holding the line around diversity and equity because they know it will help the company’s bottom line in the short and long term.

Customers want it. Employees need it. And shareholders understand it just makes good business sense. Let’s protect our freedoms in this country and ensure that we can continue to live in a country that benefits from our diversity and doesn’t try to limit it.