On November 25, 2024, Walmart, the world's largest retailer, announced that it would withdraw some of its policies related to DEI (diversity, equity and inclusion) and would no longer prioritize race and gender when selecting suppliers. , and will prohibit third-party sellers from selling specific products related to the LGBTQ community (diverse gender and sexual orientation groups, such as lesbians, gay men, bisexuals, etc.) on the website.
This is the largest company in terms of revenue among the US companies that have recently withdrawn their DEI policies (annual revenue is about US$ 612 billion). Recently, American companies have begun to revise DEI policies because conservative forces believe that DEI protects minority groups and will infringe on the rights of mainstream groups in disguise. They have also filed lawsuits against companies with DEI policies, and have also caused companies such as Ford and Starbucks to Modify relevant policies. After Donald Trump came to power, conservative forces have gained strength.
Political stance, reverse discrimination, and talent have become three difficult issues in DEI
In addition to U.S. companies, other countries are also beginning to hear voices moving away from DEI. For example, the UK Workplace Equity Commission issued a report stating that corporate discussions on DEI need to cool down because small and medium-sized enterprises feel pressured by DEI and are hesitant to move forward. One of the reasons is that DEI is easily linked to politics and ideology, allowing corporate actions to be interpreted as supporting a certain political position. Just like Wal-Mart, which was criticized by conservatives for supporting DEI.
Secondly, DEI policies may bring about reverse discrimination, which refers to the fact that in order to protect specific groups, it leads to unfair treatment of originally dominant groups (such as white people, men, etc.). These reverse discrimination cases often become the focus of media attention. For example, JPMorgan Chase received accusations in 2022 that its 10 DEI measures were discriminatory and illegal, which triggered media reports and was later revised in 2023. Some policies, including scholarship programs that originally only allowed black and Latino students, were now open to all students.
In addition, although DEI is regarded as an important way to shape diversity in the workplace, there is a question mark as to whether it can attract better talents. Tesla CEO Elon Musk emphasized that DEI, in the name of equal rights, actually blurs the principle of meritocracy and makes factors such as skin color and gender the key to recruiting talents. He believes that when recruiting and evaluating talents, companies should use the MEI (merit, excellence and intelligence) method, which refers to the selection of talents based on personal abilities, skills and achievements, that is, actual Only through performance can we achieve true fairness.
5 questions to assess your company's distance from DEI
Although DEI faces many doubts, experts still believe that its core concepts are worthy of promotion, but they need to flexibly adjust strategies to avoid falling into the whirlpool of formalism or politicization. Unconscious bias trainer Julie Kratz wrote an article in Forbes and emphasized that the original intention of DEI is to create equal opportunities for all people and eliminate discrimination such as race, class, gender, etc.
However, different interpretations of DEI will produce different results. For example, some people regard it as a challenge to their own power or vested interests, and thus generate resistance. If companies can return to the essence of DEI and formulate appropriate strategies based on their own circumstances, it will help build a harmonious and equal culture.
What should companies do better? Kratz suggests that companies can evaluate whether they need to adjust their DEI strategy from the following aspects:
- Is DEI integrated into your corporate culture?
- Do customers, employees, and partners buy into the term DEI?
- Does the company's territory include areas with concerns about DEI?
- Is there a clear DEI strategy?
- Does management fully support DEI?
The more positive answers to these questions, it means that DEI has been integrated into the corporate culture and should continue to be promoted; if the answers are negative, the company may need to evaluate starting from an easier place, such as re-evaluating the recruitment threshold, expanding to attract more Diverse talents. In addition, for customers or business areas that are sensitive to DEI, consider using more neutral terms, such as allyship (individuals from privileged backgrounds who actively support and advocate for marginalized or underrepresented groups), belonging etc. to avoid unnecessary disputes.
From U.S. companies, we can see that the change in political attitudes towards DEI also provides an opportunity for reflection. Should companies support or stay away from it? They need to rethink the meaning of DEI to themselves, measure the actual situation, and use appropriate methods to promote more A culture of inclusion.
Sources: Reuters(1), Reuters(2), Fast Company, Forbes, HR Magazine, The Oxford Review
