January 30th 2025.
It is not common for major corporations to eliminate Diversity, Equity, and Inclusion (DEI) programs. In fact, some big-name businesses like Delta and Costco are choosing to keep their DEI policies in place. During a recent conference call, Peter Carter, the chief legal officer of Delta Air Lines, stated that the company remains committed to its DEI initiatives as they believe it is essential for their business. He also mentioned that sustainability is a key factor in their operations and DEI plays a crucial role in achieving efficiency.
Kevin Clayton, the executive vice president and chief equity and impact officer for the NBA's Cleveland Cavaliers, also emphasized the importance of DEI. He stated that for their organization, DEI is not just about one group, but about every person in their community. He believes that this work is about humanity and their platform has the power to uplift their entire community.
Costco was one of the first companies to publicly announce their continued efforts towards creating a more equitable workplace. In a board vote, 98% of the members voted to maintain their current practices. The company's board of directors released a statement saying that their commitment to an inclusive and respectful workplace is necessary and appropriate.
Aside from the ethical and moral reasons for keeping DEI in place, it also makes good business sense. According to a 2023 study by McKinsey, companies that actively engage with DEI policies and initiatives tend to perform better financially. Gender-diverse boards are 27% more likely to outperform, and ethnically diverse boards are 13% more likely to do so.
However, the Trump administration does not seem to show any concern for these statistics. The decision to eliminate or promote DEI at the federal level will not have any impact on the amount of tax money the government receives. Thus, there is no financial incentive for the administration to continue supporting these policies.
The implementation of DEI is not just about business, but also about ethics and morality. These policies ensure that marginalized Americans have equal opportunities in the free market without facing discrimination. Unfortunately, many groups have already been affected by the attack on DEI, including women of all races, disabled individuals, veterans, and the elderly.
By eliminating DEI initiatives, companies and the federal government are essentially no longer obligated to provide qualified minorities with the opportunities they deserve. In fact, the White House statement takes a negative stance on providing equity for minorities, even referencing the Civil Rights Act of 1964.
A spokesperson for the White House stated that DEI has "dangerously tainted" many businesses and institutions, including the federal government, by reversing the progress made since the Civil Rights Act. However, while the government continues to view DEI as a discriminatory practice, companies are seeing through the rhetoric and ensuring that equity is observed and implemented in their operations. This is evident in the recent pressure from 19 GOP Attorneys General urging Costco to drop their DEI initiatives.
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