Did you ever wonder why a transgender media influencer appears in a Bud Light ad? Or why big companies support organizations like Black Lives Matter? The answer lies in the business of Diversity, Equity, and Inclusion (DEI). This industry, valued at around $10 billion, has become a significant part of every large company’s ecosystem. However, recent developments, such as the Supreme Court’s ruling on race-based college admissions, might bring an end to DEI as we know it.
The Supreme Court’s decision on race in college admissions has raised concerns among C-suite lawyers. They believe that if race-based admission policies are struck down, DEI will likely follow suit. This advice has prompted corporate clients to prepare for a future where the use of race in hiring, promotions, and funding decisions could become illegal. According to my legal sources, that day may be coming soon, given the recent 6-3 ruling by the Supreme Court.
You might argue that there are distinctions between college admissions and DEI in the corporate world. However, my sources suggest that the Supreme Court’s ruling has implications for DEI as well. Corporate DEI is often based on the same unconstitutional premises used by colleges to justify race-based admissions. The goal of diversity, in both cases, cannot be achieved through superficial efforts. Instead, colleges and companies must adopt measures that genuinely consider a candidate’s qualifications and experiences as an individual, regardless of their race.
Chief Justice John Roberts, in the majority opinion, emphasized the need to eliminate racial discrimination entirely. This condemnation of race-based admissions is likely to extend to corporate DEI practices. Title VII of the Civil Rights Act, which deals with employment in companies, is closely related to Title VI, which pertains to federal assistance programs. Legal experts predict that if the Supreme Court tackles a case involving corporate DEI, a similar ruling is expected.
While companies may not immediately abandon their efforts to diversify their workforce or support marginalized communities, smart organizations will be consulting their legal departments to assess the potential risks and revise their DEI policies accordingly. As my corporate legal source puts it, “Every large corporation will eventually have to reassess their human resources and DEI policies” in light of recent developments.
In summary, the landscape of DEI is changing rapidly. The Supreme Court’s ruling on race in college admissions has prompted concerns about the future of DEI in the corporate world. Companies will need to navigate this evolving landscape, ensuring their policies align with legal requirements while fostering diverse and inclusive environments.
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