Over the past few months many companies have made significant changes to their Diversity, Equity, and Inclusion (DEI) programs, or have eliminated them altogether. Think Amazon, McDonald’s, Lowe’s, Tractor Supply, and most recently Meta AKA Facebook.
This shift reveals a not so surprising truth- all those diversity efforts were just talk. A way to capitalize on the social movements happening at the time to attract customers and sell products and services. And it worked for a while.
In 2020, after the murder of George Floyd, the nation was collectively outraged. Discussions about racism were happening in almost every corner of the world. Most Fortune 500 companies doubled down on their diversity efforts to respond to the outrage from most Americans. Companies began requiring mandatory racial and diversity training and called for everyone to examine their explicit and implicit bias.
But as with most 'required' activities employees grew weary of mandatory diversity training and being told they weren’t doing enough to be inclusive. Social media influencers began to call out brands for being “woke” and called for boycotts of brands engaged in “too much diversity”. Companies began to respond by downsizing or eliminating DEI programs to win favor with their customer base. This move is actually not a surprise.
Historically, companies have always shifted strategies, direction, defined new products and services based on what the customer wants and the changing tides. They catch the wave that promises the greatest impact and profit. A few of the nation's most recognized companies shifted their strategies to meet new customer demands. Netflix was originally a DVD rental service, consumers demanded something different, and they started streaming services in 2007. Amazon started in 1995 as an online book seller. In 2000, they pivoted to become an online marketplace where third parties could sell their products. I for one, have at least 1 box from Amazon arrive at my home weekly.
Companies shift their approach for their businesses all the time. This is just another one of those shifts. Social media has enabled consumers to amplify their voices to a much broader audience and companies are listening and changing faster than ever.
While many companies are shifting their diversity efforts there are several companies that remain committed to their DEI programs – think Costco, Microsoft, Salesforce and Accenture --- all have maintained their commitment to engaging diverse employees, and customers.
While some may mourn the decline of DEI programs, I believe it clears the muddy waters. Those who didn't genuinely mean it, or did it just to sell more products, will move out of the way for companies and organizations that see the true value in DEI.
These companies will continue their efforts, knowing they will attract better talent, appeal to customers, and ultimately thrive regardless of the shift in tides. They are on a long board able to handle any changes in the tide.
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