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The Shift Away From Racial Quotas Is Accelerating

We’ve written a lot about how corporate America has been steering away from ESG social and environmental investing under pressure from CTUP and shareholders.

Now we may be seeing the same happen in DEI (Diversity, Equity, and Inclusion).

“2023 has undeniably shifted the DEI landscape for years to come,” concludes a report from the pro-DEI consulting firm Paradigm after surveying 148 clients. “External forces are no longer pushing companies to invest in DEI, instead, in some cases, external forces are pushing back on companies investment in DEI.”

Key to its findings is last June’s Supreme Court decision striking down the explicit use of race in university admissions. Since then, lawsuits against two law firms that operated fellowships limited to minorities or LGBTQ+ applicants resulted in the firms abandoning the programs. Other firms are dropping DEI internships before they are sued.

A group of 13 state attorneys general have written Fortune 100 companies suggesting they reconsider programs “with explicit racial quotas.” Paradigm reports that the lawsuits and letters “will have significant downstream consequences for years to come.”

We are all for efforts to have more inclusive workplaces and outreach programs to have a wide applicant pool. However, DEI efforts to mandate racial hiring are not only unconstitutional but destructive of the colorblind ideals of civil rights leaders such as Martin Luther King Jr.

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