Caught in the middle—growing challenges by activist shareholders to DEI programs

Diversity Equity & Inclusion (DEI) programs have become the focus of intense controversy, with corporations caught between activist shareholders pushing to increase diversity in the workforce and others arguing against DEI programs. There’s a growing backlash against companies that—particularly following the murder of George Floyd—embraced and implemented broad DEI programs and made public pledges to increase diversity in their workforces and supply chains.

Pushback
Additionally, in response to the softening of the economy and the backlash against “wokeism” and Environmental Social & Governance (ESG) initiatives, a growing number of corporations are scaling back the staffing responsible for implementing the DEI programs.

Finally, the growing skepticism and challenges of DEI programs likely will accelerate after the Supreme Court’s widely anticipated decisions later this year, which likely will set aside affirmative action programs in student admissions and expand protections against religious discrimination.