Good morning!
Attacks on corporate diversity, equity, and inclusion (DEI) efforts have ramped up this year, as billionaires like Elon Musk and Bill Ackman came out with very public diatribes against diversity initiatives. But despite these assaults, most business executives say they’re still committed to DEI, and in fact, they’re doubling down on those programs.
Around 72% of C-suite and HR leaders plan to further build and enhance their existing DEI programs within the next two years, according to a new report from executive search firm Bridge Partners, which polled more than 400 business executives at companies with at least $25 million in revenue or more than 250 employees. By comparison, only 4% of business leaders plan to cut back or eliminate their programs.
The picture becomes even rosier when it comes to how many executives think these programs improve the company. Around 94% of survey respondents say DEI is important for its positive impact on recruiting, hiring, and retention. Another 74% believe these programs improve a company’s reputation with customers and the public, and 68% say these initiatives foster innovation and creativity.
But other figures from the report show that corporate leaders are more conflicted about DEI initiatives than those topline numbers let on, signaling that the fight over DEI is far from settled.
The number of respondents who believe DEI is more important today than it was five years ago fell from 82% in 2023 to 73% this year. And around one in four executives believe DEI programs are one sided, biased, and likely a fad that will go away. Another 33% say DEI programs unfairly advance some employees but not others. Perhaps most ominously, the share of employers increasing their investments in DEI fell from 77% in 2023 to 66% in 2024.
“There is this sort of dichotomy of: ‘Yes, we understand the business case. Yes, we want to continue to invest. Yes, we're in this for the long term. But also, it's a fad and it's unfair,’” Tory Clarke, partner and cofounder at Bridge Partners, tells Fortune. “The conclusion that we've come to as we've poured through all of this data is, it depends on who you're asking.”
For example, HR and executive leaders were the biggest proponents of DEI as 87% and 75% respectively said it was a “high priority,” according to the report. Board members, shareholders, and external stakeholders were the least likely to prioritize DEI, as only 57%, 41%, and 35% respectively said that DEI is a high priority.
Overall, Clarke says that while the C-suite today is becoming more diverse, DEI proponents have a long road ahead of them. But she adds that the current backlash is just one of many that diversity initiatives have faced over the years.
“This is an upward trajectory with that, if you zoom in on it, you see it's made up of lots of sort of spikes and peaks and troughs along the way,” she says. “It will not be a smooth journey. But probably, and hopefully, the fact that there is a very clear business case for this work, and there is an increasingly diverse population in the United States, will help it to continue on that trajectory.”
Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion
Today's edition was curated by Emma Burleigh.
