In the face of vacillating political pressure, corporate America is walking a tightrope when it comes to diversity, equity, and inclusion (DEI). Republican attorneys general from 13 states recently issued the management teams of all Fortune 100 companies with a cease-and-desist letter telling the companies to comply with "race-neutral principles" in their employment and contracting practices. In response, seven Democratic state attorneys general last week promised legal defense to companies whose DEI initiatives face challenges.
The back and forth follows the recent U.S. Supreme Court decision essentially banning race-conscious (or affirmative action) college admissions. While the ruling does not concern Title VII of the 1964 Civil Rights Act, which governs employment discrimination and DEI initiatives, some corporate leaders are concerned not only about the ruling’s direct implications for companies looking to recruit from institutions of higher education but also about the backlash against corporations’ DEI practices more broadly.
