Aye, matees!

I was inspired by a shark on Instagram so we’re going to talk about Pirates and DEI lol enjoy.

🦜 Pirates: The OG DEI Pioneers 🏴‍☠️ 

Here are some sea shanty vibes to really bring the experience together today.
(If I have to live with it on repeat in my head, so do you)

In recent months, a concerning trend has emerged in the corporate world: the scaling back of Diversity, Equity, and Inclusion (DEI) initiatives. This shift comes at a time when many believed DEI efforts were gaining momentum. Let's dive into the data, explore the reasons behind this trend, and consider its potential impacts.

The Current Landscape

According to recent research, some companies have cut budgets for external DEI groups by as much as 90% in 2023. But it’s not just external DEI groups says Melinda Briana Epler, founder and CEO of Empovia, “Whenever there is an economic downturn in tech, some of the first budgets that are cut are in DEI, but I don’t think we’ve seen such stark contrast as this year.”

• DEI Goes Quiet (New York Times)

• The war on DEI (Insight Into Diversity)

• 6 companies turning away from DEI programs (Advocate)

• Companies like Zoom and Snap are cutting DEI jobs (Washington Post)

Factors Contributing to the Decline:

1. 💰️ Economic Pressures: With global economic uncertainty, some companies are cutting what they perceive as "non-essential" programs.

2. ⚖️ Political Pushback: In certain regions, there's been increased political opposition to DEI initiatives, influencing corporate decisions.

3. 📊 Measurement Challenges: Some organizations struggle to quantify the ROI of DEI programs, making them vulnerable to budget cuts.

4. 😩 Fatigue and Backlash: A subset of employees and leaders express "diversity fatigue" or perceive DEI efforts as exclusionary.

Affirmative Action

We also can’t ignore the impact that Affirmative Action in the US has had on DEI programs.

Affirmative action refers to policies that aim to increase representation of underrepresented groups in areas of employment, education, and business. In college admissions, it often meant considering race as one factor among many in evaluating applicants.

The TLDR?

1. The Decision
   On June 29, 2023, the U.S. Supreme Court ruled that race-conscious admissions programs at Harvard University and the University of North Carolina were unconstitutional and effectively ended the practice in college admissions.

2. The Reasoning
   The Court majority argued that these programs violated the Equal Protection Clause of the 14th Amendment.
   They stated that while diversity in higher education is a compelling interest, the use of race in admissions decisions is not narrowly tailored to achieve that goal.

3. The Implications
   Colleges and universities can no longer explicitly consider race as a factor in admissions decisions.
   This is expected to have a significant impact on the racial composition of student bodies, particularly at selective institutions.

4. Broader Impact

   While the ruling specifically addresses higher education, it has sparked debates about affirmative action in employment and other sectors.

   Some companies are reevaluating their diversity initiatives in light of this decision.

Additional issues to highlight on the business impact side is the fear of reverse discrimination lawsuits and, in my opinion, an ineptitude to increase and measure diversity initiatives without tokenization.

The Potential Consequences

Scaling back DEI initiatives could have far-reaching implications:

1. 🧲 Talent Attraction and Retention: 83% of millennials and Gen Z consider a company's diversity efforts when job hunting.

2. 💡 Innovation: Companies with above-average diversity produce greater proportion of revenue from innovation (45% of total) than from companies with below average diversity (26%).

3. 🤑 Financial Performance: McKinsey found that companies in the top quartile for ethnic diversity show an average 27% financial advantage over others.

4. ⚖️ Legal Risks: Reduced focus on inclusion could lead to increased discrimination claims.

A Historical Perspective: Pirates and Inclusive Hiring

While the current DEI landscape seems grim, it's worth noting that inclusive hiring practices have deep historical roots. Surprisingly, pirate crews of the 17th and 18th centuries provide an interesting case study in disability inclusion. Peg leg, hook hand, and eye patch? No problem.

Pirates, operating outside societal norms, valued skills and loyalty over physical attributes. Ok new collar workers, let’s goooo.

This led to remarkably inclusive practices:

1. 💰️ Compensation for Injuries: The pirate code often included provisions for crew members who became disabled during service.

2. 💼 Adaptive Roles: Pirates with disabilities were given roles that suited their abilities. For example, peg-legged pirates often became lookouts or ship carpenters.

3. 🤝 Equal Share System: Many pirate crews divided spoils equally, regardless of physical ability, fostering a sense of equity.

4. 🌟 Leadership Opportunities: Some of the most famous pirate captains, like Bartholomew Roberts, had disabilities but rose to leadership positions based on their skills.

This historical example demonstrates that inclusive practices can emerge in unexpected places and can contribute to organizational success, even in challenging environments.

So why are we losing touch now? Can’t we all share in the spoils?

Looking Forward: The Business Case for DEI

Despite the current downturn, the long-term benefits of DEI initiatives remain clear:

1. 🔍️ Broader Talent Pool: Inclusive hiring practices expand access to skilled workers in a competitive market.

2. 🧠 Enhanced Problem-Solving: Diverse teams bring varied perspectives, leading to more innovative solutions.

3. 🤝 Improved Customer Understanding: A diverse workforce can better relate to and serve a diverse customer base.

4. 🌟 Positive Brand Image: Companies known for strong DEI practices often enjoy enhanced reputation and customer loyalty.

Conclusion

While the current trend of scaling back DEI initiatives is concerning, history and data suggest that inclusive practices are both achievable and essential for long-term success. Companies that maintain their commitment to diversity, equity, and inclusion - even in challenging times - may find themselves better positioned for future growth and innovation.

As we navigate this complex landscape, perhaps we can take a lesson from the pirates of old: valuing skills, adaptability, and equal opportunity can lead to a more resilient and successful organization.

What are your thoughts on the current DEI landscape? How can companies balance economic pressures with the need for inclusive practices?

That’s all for now, pals. See ya next week.

Eryn