By Claire Moraa
- 64% of consumers would boycott a brand if it doesn’t align with their social beliefs
- Companies that adopt DEI initiatives have a higher chance of increasing their profitability
Filling up C-suite roles has had it’s challenges and now, it’s about to be even harder. Rolling back and limiting DEI initiatives will affect the C-suite roles which have had a stellar track record by increasing business profitability. Large companies such as Target and Walmart that have relied on DEI initiatives for years have already pulled the pug and will no longer be moving forward with such practices. Revising hiring practices to focus more on merit than on diversity quotas could have far-reaching consequences but are they good or bad?
Why This Matters: Opposing DEI initiatives and rolling back regulations designed to promote diversity and inclusion in the workplace may impact the composition of corporate leadership and the culture of organizations. Companies are already casting a wider net as their current pool of employees proves to be insufficient to fill up these roles. There has been backlash that DEI initiatives don’t directly translate into immediate financial performance, but when we look at the bigger picture, is it the companies’ fault or lack of proper planning? It’s no secret that diverse teams often outperform homogeneous ones in the long run.
So is scrapping them out the answer or do these companies need to go back to the drawing board and recalibrate their DEI goals. Companies need to reevaluate their strategic goals and find other ways to bring diversity and inclusion that will still ensure they meet their business needs. Afterall, the end goal is to drive efficiency, increase market share, and enhance global competitiveness. And with how majority of consumers are wired today–64% are ready to boycott a brand based on their stand on social and political issues, these are hard times to be sitting on the fence.
Situational Awareness: The political landscape is unpredictable at this time and while DEI-focused roles and strategies may take a backseat for some companies, others will likely continue to innovate in how they approach inclusion, particularly as younger generations of employees and customers continue to prioritize these issues. The young generation is not afraid to leave these roles so it’s up to the current leadership to pave way for them by creating a supportive and inclusive environment where they can thrive.
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