HOTLINE readers know how much progress CTUP and others have made in getting financial institutions to back off promoting an ESG agenda (It stands for “environment,” “social,” and “governance”, but often encompasses other left-leaning priorities related to race, sex, and ethnicity).
That agenda was in direct violation of the legal obligation to try to earn the highest return for their clients, including tens of millions of retirees and other American savers.
Now, counterattacks on DEI, or diversity, equity, and inclusion hiring programs appear to be working.
Axios reports: “The backlash over DEI has shaken the business community…businesses are shedding DEI jobs across almost every sector…” The number of DEI, diversity, equity, or inclusion mentions during quarterly earning calls has declined from over 300 to less than 75.
There is a better way to achieve diversity than quotas and DEI strong-arm tactics.
A Harvard Business Review study points to a different solution: “In analyzing three decades’ worth of data from more than 800 U.S. firms and interviewing hundreds of line managers and executives at length, we’ve seen that companies get better results when they ease up on the control tactics. It’s more effective to engage managers in solving the problem, increase their on-the-job contact with female and minority workers, and promote social accountability—the desire to look fair-minded. That’s why interventions such as targeted college recruitment, mentoring programs, self-managed teams, and task forces have boosted diversity in businesses.”
And all of that has the advantage of not being unconstitutional.