Since 2022, anti-DEI (diversity, equity and inclusion) activists have attacked DEI goals, talent programs aimed at specific demographics and supplier-diversity initiatives. Notably, there have been some household names (John Deere, Lowe’s, Harley Davidson) that have pivoted their DEI strategies amidst this pushback. However, despite this perceived pushback, corporate support for DEI remains strong. According to Teneo’s new The State of Sustainability in 2024: DEI Will Survive report:
- Forty-three percent of companies continue to maintain and promote quantitative, time-bound DEI goals, and 80% of DEI goals remain unchanged from 2023.
- Sixty-seven percent of companies have targeted talent programs for diverse talent.
- Seventy percent of companies have supplier-diversity programs.
To get a more accurate idea of companies’ commitment to DEI, it’s important to look at these three areas: DEI goals, DEI talent programs and supplier-diversity programs. If your organization has yet to set goals, build talent programs or supplier-diversity programs, it’s not too late to start.
DEI Goals
To effectively set DEI goals, it is important to first assess the current state of your organization and get a baseline of data—quantitative and qualitative. This can involve gathering data on employee demographics, conducting assessments or listening sessions to understand employee perceptions and analyzing policies and practices to identify potential barriers to diversity and inclusion.
Once you have a clear understanding of your organization’s needs, you can begin to develop specific, measurable, achievable, relevant, and time-bound (SMART) DEI goals. These goals should align with your organization’s overall values, business goals and strategic objectives, and they should be communicated clearly to all employees. It is also important to establish metrics and tracking mechanisms to monitor progress towards your DEI goals and make adjustments as needed. An example of a DEI SMART goal might be for every employee to have an inclusion-development goal on their professional-development plan, or that the organization will increase perceptions around inclusion or belonging through a DEI assessment.
DEI Talent Programs
“Talent programs such as mentorships, fellowships, internships and scholarships that focus on specific demographics are not exclusionary; they are prominently featured in nearly 70% of reports and framed as essential tools for reaching diverse candidates,” said Martha Carter, Teneo vice chairman and head of governance advisory, in our interview.
Building a DEI talent program is essential for ensuring that your organization attracts, retains and develops a diverse and inclusive workforce. In recent years, with the rise of DEI, many companies pivoted to focus on diversity without focusing on inclusion, all to find that they were not able to retain diverse talent.
To create an effective program, consider implementing talent programs such as mentorships, fellowships, internships and scholarships that focus on supporting specific underrepresented demographics. For example, if an organization does not have equitable representation of women in leadership, they might consider an internship or sponsorship program to support women in their career advancement. Organizations generally have diverse representation at the front lines. There’s an opportunity to develop skills with existing employees for career advancement. Allyship programs and Employee Resource Groups (ERGs) are also essential DEI talent programs.
Supplier Diversity Programs
To use suppliers that do not reflect the communities an organization hopes to serve is a business risk. To build an effective supplier-diversity program, organizations should start by assessing their current supplier base and identifying areas for improvement. While gender, race, ethnicity, disability and LGBTQ+ are some diversity dimensions to start with, it’s important that organizations broaden the definition of diversity to fit the needs of their market. Once an organization has assessed areas for improvement, it’s common to build a scorecard to measure success over time based on key dimensions of diversity.
Despite perception of DEI pushback, Teneo also finds organizations are continuing to use language consistent with diversity, equity and inclusion. “Companies are taking steps to adapt to the current risk environment, as illustrated by the following proof points. Although 94% of companies used some form of DEI acronym in their sustainability reports, more companies are prioritizing inclusion or adding ‘culture’ and ‘belonging.’ While 80% of the companies with DEI goals last year remain unchanged, the SCOTUS decision on affirmative action in higher education led to a four-percentage-point reduction in the use of diverse representation goals,” said Faten Alqaseer, Teneo senior managing director and co-lead of DEI advisory in our interview.
Teneo’s new report confirms that while companies may be modifying their external communications around DEI, they are still pursuing them. Despite the recent pivots and news headlines, the truth is that companies remain committed to DEI.