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Corporate diversity push: How it’s shaken as affirmative action ends

Now that the U.S. Supreme Court has struck down affirmative action at colleges and universities, conservatives are turning their fire on corporations. The struggle over companies’ diversity efforts has already begun.

For example, Republican attorneys general in 13 states sent a letter warning America’s largest corporations of “serious legal consequences” for their initiatives on diversity, equity, and inclusion (DEI). The conservative argument is that efforts to hit diversity targets for things like hiring are unconstitutional as a race-based preferential treatment.

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Hiring based on race or ethnicity was already illegal before last month. But a court ruling on affirmative action is roiling boardrooms – even as their focus on diversity isn’t likely to disappear.

On Friday, the president of Texas A&M University resigned because the hiring of a high-profile journalism professor came under fire for her past work on diversity.

Activists on both sides of the issue expect the fallout to spread. Still, even though the ground may be shifting, that doesn’t mean corporate diversity efforts will disappear.

“In this day and age in the 21st century, you can’t just say, ‘You know what, we’re kind of done with that DEI thing,’” says Ishan Bhabha of the law firm Jenner & Block. The advantages of being able to draw from a greater talent pool and to address an increasingly diverse customer base make diversity a corporate imperative, he says.

Now that the U.S. Supreme Court has struck down affirmative action at colleges and universities, conservatives are turning their fire on corporations. The struggle over companies’ diversity efforts has already begun.

Following the June 29 decision, the House of Representatives passed a defense policy bill with several social policy amendments tacked on, including the elimination of the Pentagon’s programs for diversity, equity, and inclusion (DEI). Republican attorneys general in 13 states sent a letter warning America’s largest corporations of “serious legal consequences” for their DEI initiatives. And on Friday, the president of Texas A&M University resigned because the hiring of a high-profile journalism professor came under fire for her past work on diversity.

Activists on both sides of the issue expect the fallout to spread. “It’s already happened in higher ed. It’s going to happen in the corporate space,” says Sy Stokes, vice president of research at Coqual, a New York think tank on DEI.

Why We Wrote This

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Hiring based on race or ethnicity was already illegal before last month. But a court ruling on affirmative action is roiling boardrooms – even as their focus on diversity isn’t likely to disappear.

At issue: how best to promote fairness in a society that enshrines equality but whose economic realities continue to fall short of that ideal. 

“The fundamental problem is, when you cut through all the rhetoric, … the idea of individual equality under the law as opposed to equity,” says Reed Rubinstein, director of oversight and investigations for America First Legal, a conservative nonprofit legal foundation challenging preferential hiring and other corporate diversity efforts. Conservatives support the idea of equality, meaning that everyone is treated equally under the law.

Proponents of DEI say that’s not enough. “Equity means actually doing things to correct the historical imbalance of racial justice or gender justice that we’ve seen,” says Mr. Stokes. “It won’t be corrected unless there are targeted efforts toward improving the lives of those who are the most marginalized in our society.”

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