Woke Businesses Scale Back Diversity As legal Pressure Mounts

As a result of increased public criticism and lawsuit threats, some large businesses and organizations have decided to withdraw from Diversity, Equity, and Inclusion (DEI) programs in 2023.

Several law firms, BlackRock and JPMorgan Chase, previously included DEI projects in their recruiting procedures and policy frameworks. These businesses rescinded several DEI policies in 2023 after facing allegations in court that they encouraged discrimination and unfair trade practices. According to a recent survey, twenty percent of IT organizations cut DEI teams in the last year.

The IT sector saw a surge in diversity, equity, and inclusion initiatives during the 2020 racial justice rallies. But now, after three years, those corporations are cutting down. HIRED, a platform for recruitment, has published a report including the results of a survey of 229 hiring executives, which provides updated statistics. Among them, 20% claimed to have reduced the size of their DEI teams in the last year. But in 2022, the gender pay gap expanded across all racial and ethnic categories.

Following a few years of trend reversals, a significant signal suggests biases are re-forming. A growing number of software companies are just requesting interviews from male candidates. Although it was somewhat lower than the 43% that remained unchanged from 2019 to 2020, the proportion increased from 37% in 2021 to 38% in 2022.

At least in terms of tackling the racial disparities that have molded the country for generations, the latest study revealing a retreat from DEI initiatives is further evidence that the United States can’t seem to go much farther forward without regressing.

Some law firms have also been threatened with legal action for implementing DEI regulations. A diversity fellowship program at Morrison and Foerster LLP served students “who are members of historically underrepresented groups in the legal field,” as shown in a website archive request.

Morrison and Foerster revised the fellowship’s application criteria to include candidates who have “demonstrated commitment to diversity and inclusion in the legal profession” in response to legal threats from the American Alliance for Equal Rights (AAER).