Companies: Now Is Not The Time To Defund DEI

There has been a lot of talk about an impending recession. The United States, the United Kingdom and several other countries around the globe may be facing a recession. Inflation is at staggering rates with gas prices, grocery and rent prices hitting record highs. Many businesses may be considering ways to cut spending to mitigate the impacts of the recession. During periods of uncertainty, companies seek ways to cut costs. At the start of the pandemic, many organizations cut their diversity, equity, and inclusion (DEI) budgets, only to find out months later, after the murder of George Floyd, that there should always be a prioritization of DEI. For any organization or institution that’s thinking about putting DEI on the backburner for budgetary reasons, this article is a cautionary tale for why that must be reconsidered.

1. Consumers value DEI. In a 2021 Forbes article, Sonia Thompson reported that marketing trends signify that consumers want to support brands that are committed to DEI. A 2021 McKinsey & Company report indicates that social values influence shopping choices for two out of three Americans. The racial demographics of consumers have shifted, with more racial diversity among consumers. Buyers also place value on sustainability and quality. The aforementioned McKinsey report also found that consumers want to support Black-owned brands. Many corporations think that cutting back on the time, effort, and resources poured into DEI may not make much of an impact. But in 2022, there is a plethora of options—consumers don’t have to be pigeon-holed into supporting one particular brand, and have an infinite number of choices. Businesses that disregard DEI will hurt themselves in the long run. A failure to consider consumer preferences will prevent organizations from growing and thriving.

2. The Great Resignation is still a concern. The Racial Revolution of 2020 brought on a shift in the public’s consciousness when it comes to racial equity and justice. That, coupled with the global pandemic, catalyzed changes in job seeker preferences. A 2021 article by The Washington Post reported that millennial and Generation Z job seekers want to work for companies that prioritize DEI. The World Economic Forum reported in June of 2022 that the Great Resignation is still a concern, with a continuation of turnover trends expected for the remainder of 2022. Organizations and institutions that defund DEI will continue to see turnover and will be unable to attract job seekers. A lack of focus on DEI and offering empty promises to go along with DEI declarations may turn job seekers off. It’s easier now for organizations and institutions to be called out and cancelled—the public wants to see receipts that align with public DEI pledges. The Great Resignation is still a problem that workplaces must overcome and ensuring that the needs of marginalized employees are centered will reduce turnover and attract job seekers, especially those from underrepresented backgrounds.

3. Trust takes time to rebuild. DEI has seen many iterations over the last century. The space has morphed and evolved experiencing unexpected shifts. Employees and consumers alike are hungry to see DEI at the forefront. All the momentum that has been built over the years can be ruined in an instant, when employees behave in ways that are inequitable and discriminatory. Just like a relationship where trust has been compromised, organizations and institutions that break the trust of their employees must recognize how much work is required to repair and rectify past wrongs. For corporations that were built upon racist, exclusionary, and unjust practices, (which is practically every organization and institution) cultivating an environment that is inclusive and centers the most harmed is no easy feat and takes continued and concerted effort. Similar to a person who has started a journey to transforming their body and has seen muscle growth through weight lifting, if they suddenly stop weight lifting, the muscles that have been formed will slowly start to decrease. Removing or reallocating DEI resources and funding will lead to a decline in progress—many workplaces may start to regress. The progress and momentum that has been achieved can be ruined when there isn’t a persistent focus on DEI; repairing the damage that has been caused will take work and effort. Any organization or institution considering defunding DEI must consider this and the harm that can be caused to current and future employees.