Additional Coverage:
- Black Caucus issues new guidelines for DEI policies and urges firms to help reduce racial wealth gap (newsbreak.com)
**Corporate Diversity Policies: Legal and Vital for Economic Equity, Says New CBC Report**
**WASHINGTON (AP)** – Workplace diversity and inclusion policies remain lawful and should be broadened to further economic prosperity and reduce racial wealth disparities, according to a new report from the Congressional Black Caucus (CBC).
The report, released on Monday, provides corporations with best practices for fostering diversity, equity, and inclusion (DEI) within their organizations. It also encourages companies to reaffirm their commitment to racial justice and outlines strategies for boosting wealth in Black communities and narrowing the racial wealth gap.
“In response to George Floyd’s death, corporations promised $50 billion towards racial equity and enhancing DEI policies,” said Rep. Steven Horsford, D-Nev., chair of the CBC, in an interview. “DEI is currently under attack, but the response from corporate America has been significant.”
The findings come after the CBC’s December letter urging corporations to “reaffirm their commitments to DEI” and collaborate with the CBC to address racial and economic inequalities. The report is the product of months of discussions between the caucus, nearly half of the Fortune 500 companies, academics, and business analysts, aiming to develop DEI guidelines and support Black economic advancement amid a challenging political and legal landscape. The report noted backlash from conservative activists and lawmakers against these policies.
Horsford criticized “far right actors” trying to coerce corporations into abandoning DEI policies. He stated it was incorrect to rescind these policies based on the Supreme Court’s June ruling halting affirmative action in college admissions, which did not directly affect corporate DEI practices.
“There is nothing illegal or unconstitutional about DEI initiatives in the corporate sector. I commend the companies that responded positively. We are now providing a roadmap for effective DEI practices,” Horsford said, referencing the study titled “What Good Looks Like: A Corporate Accountability Report on Diversity, Equity and Inclusion.”
Following the Supreme Court’s ruling, numerous Republican attorneys general have threatened Fortune 500 companies with legal action over DEI policies. Earlier this year, GOP lawmakers in various states moved to curb diversity and inclusion efforts at workplaces, and conservative legal groups have filed lawsuits against organizations promoting underrepresented groups. Consequently, some companies have reevaluated their DEI initiatives.
DEI policies are designed to foster an inclusive environment for people from diverse backgrounds. These guidelines can vary in scope and can target different demographics.
After the Supreme Court ruling, the Democratic chair of the Equal Employment Opportunity Commission emphasized that the decision “does not address employer efforts to foster diverse and inclusive workforces or to engage the talents of all qualified workers.”
The study identifies twelve areas where corporations can enhance DEI efforts and help close the racial wealth gap. Key focus areas include workplace culture, data disaggregation, talent opportunities, retention rates, pay equity, and procurement policies.
The report invites companies to “collaborate legislatively” to create laws ensuring sustained accountability for corporate America and to bridge the inequality gap.
Participants in the study mainly comprised manufacturing firms, followed by those in financial services and information sectors. Fifty CEOs engaged directly with the CBC alongside responses from other top representatives, letters, and questionnaires provided by lawmakers.
The CBC, a significant and influential group within the Democratic congressional caucus, is united in advancing the interests of Black Americans, focusing on areas such as voting rights and economic mobility. House Minority Leader Hakeem Jeffries, D-N.Y., a CBC member, contributed to the report’s development.
“It is no longer acceptable to make promises without taking action,” the report states. “George Floyd’s murder, like many other police-related killings, galvanized our community and sparked activism nationwide.
Many corporations committed to fighting alongside us during this period. Now is the time to ensure those corporations are held accountable.”