Before You Post or Get on the Mic About DEI, Read This First

As I was wrapping up an article on Redefining DEI in Business, a video from the Daily Show featuring Charlamagne dropped that reminded me of the critical importance of educating people on what DEI is and is not.

Most people have a very narrow comprehension of the work and aren’t aware that this year marks 60 years since this work was first introduced into the workforce. Said another way, DEI work didn’t start in 2020 after the murder of George Floyd, and the current countermovement isn’t a new phenomenon.

In this article, I’ll share an overview of DEI's history based largely on a retrospective analysis of DEI from 1964 to 2008 developed by The Winter’s Group and Sodexo. When educating leaders on this work, I always recommend this retrospective to understand DEI's evolution.

The concept of DEI (diversity, equity, and inclusion) has undergone a transformative journey within the corporate setting over the past six decades. What began as a legal compliance measure has evolved into a strategic business imperative, driven by recognition that a diverse and inclusive workforce is essential for innovation, productivity, profits and long-term success.

The Origins of DEI: The Civil Rights Act of 1964

The roots of corporate DEI efforts can be traced back to the Civil Rights Act of 1964, which prohibited discrimination based on race, color, religion, sex, or national origin. This landmark legislation marked a turning point, compelling companies to address systemic inequalities and create more inclusive workplaces. This legislation also added fuel to the flame of the countermovement.?

Similar to the current backlash after the resurgence of DEI in 2020, there was significant popular resistance and a countermovement following the passage of the Civil Rights Act of 1964 by those who sought to preserve the old racial order to include these historical facts:

• Segregationists attempted to prevent the implementation of the federal civil rights legislation at the local level.1

• George Wallace, the segregationist governor of Alabama, made a strong showing in the 1964 presidential primaries in several states. He relied heavily on anti-integration rhetoric and bemoaned the loss of "traditional" American values, which foreshadowed the rise of the new social conservatism.1?

• There was widespread popular resistance to the desegregation and integration mandated by the Civil Rights Act, as many white Americans were unwilling to give up the privileges of the Jim Crow system.2

• The Civil Rights Act faced significant opposition in Congress from Southern Democratic opponents who tried to block the bill through filibusters and other delaying tactics.3 It took considerable effort from civil rights supporters and the Johnson administration to overcome this opposition.

• Even after the act was passed, segregationists continued to find ways to undermine its implementation and maintain racial segregation, leading to further legal battles and activism.1

Though the act ultimately proved to be a transformative piece of legislation, there were even assassinations connected to this civil rights legislation and movement, John F. Kennedy, a year before the act’s passing, and Dr. Martin Luther King, Jr., four years later at the height of the movement.

In the years following the Civil Rights Act of 1964, many corporations implemented programs to comply with the law and avoid legal liabilities. However, these early efforts were often superficial and focused primarily on raising awareness rather than driving meaningful change.?

The Shift Towards Strategic Inclusion

As the understanding of diversity and inclusion deepened, corporations began recognizing the tangible business benefits of a diverse workforce. Numerous studies consistently showed that companies with diverse teams outperformed their homogeneous counterparts in areas such as innovation, problem-solving, and financial performance.

This realization led to a shift in corporate DEI efforts, moving away from a compliance-driven approach towards a more strategic and comprehensive model. Companies started to embed DEI principles into their core business strategies, recognizing that a truly inclusive culture was essential for attracting and retaining top talent, fostering creativity, and better serving a diverse customer base. It’s important that leaders understand this evolution from a compliance (counting faces) to commercialization (counting profits) focus over the past 60 years.

The Impact on Workforce Development and Business Outcomes

The acknowledgment of DEI as a vital business imperative is underpinned by compelling data that illustrate its direct impact on workforce development, innovation, and financial performance:

• Companies in the top quartile for gender diversity on executive teams are 25% more likely to outperform their less diverse peers financially. 5

• Organizations leading in ethnic diversity are 36% more likely to achieve above-average profitability compared to their industry medians. 5

• Diverse companies earn 2.5 times higher cash flow per employee than their less diverse counterparts. 5

• Inclusive teams are over 35% more productive and make better business decisions 87% of the time. 5

• Companies with diverse management teams report a 19% higher revenue contribution from innovation. 6

Furthermore, robust DEI initiatives have been shown to positively impact workforce development by improving employee engagement, retention, and representation across all levels of an organization. For example, Sodexo, which has had a comprehensive DEI strategy for over 20 years, credits it for improving employee engagement by 8 points, employee retention by 19%, and better representing the demographics of the markets they serve - all of which contributed to a 15.3% increase in operating profit over 3 years.

The Modern DEI Landscape

Today, DEI in the corporate world encompass a wide range of practices and strategies inclusive of and well beyond workforce representation, including:

1. Recruitment and Talent Acquisition: Companies are actively seeking to build diverse talent pipelines and eliminate biases in the hiring process.

1. Employee Resource Groups: These employee-led groups provide support, networking opportunities, and a sense of community for underrepresented groups.

1. Inclusive Leadership Development: Training programs help leaders cultivate inclusive mindsets, mitigate unconscious biases, and create psychologically safe team environments.

1. Supplier Diversity: Companies seek to diversify their supply chains and support businesses owned by underrepresented groups.

1. Data-Driven Accountability: Organizations are implementing robust data tracking and reporting mechanisms to measure the impact of their DEI efforts and hold themselves accountable for progress.
2. Market Expansion & Product Development: A diverse workforce can better understand and cater to a diverse customer base, improving customer satisfaction and loyalty. Companies with higher levels of gender diversity on executive teams are 25% more likely to outperform their less diverse peers financially

While significant strides have been made, the journey towards true diversity, equity, and inclusion is ongoing. As the workforce continues to evolve and societal expectations shift, corporations must remain agile and committed to fostering inclusive environments where every individual can thrive and contribute their unique perspectives.

By understanding the historical context, the modern landscape, and the tangible impacts of DEI, leaders can better appreciate the importance of these efforts, develop strategies that drive meaningful change within their organizations and prepare to redefine DEI as history repeats itself with a growing 2024 countermovement.?

Stay tuned to my next article on Redefining DEI!

For now, watch this episode of the Let’s Thrive Together podcast on "The True State of DEI" with my Harvard and DEI practitioner colleague, Dr. "Bowtie Todd" Jenkins.

Or listen to this episode here!

Leave a comment below with your thoughts, questions or feedback. Keep leading & keep thriving.

If Career Thrivers can be of service to your leaders and organization as you strive to develop leaders and cultivate a culture of belonging where everyone can thrive, contact us today at careerthrivers.com/contact.

References:

1. The Civil Rights Act of 1964 and the Voting Rights Act of 1965

https://www.khanacademy.org/humanities/us-history/postwarera/civil-rights-movement/a/the-civil-rights-act-of-1964-and-the-voting-rights-act-of-1965

2. The Civil Rights Act of 1964: A Long Struggle for Freedom https://www.loc.gov/exhibits/civil-rights-act/epilogue.html

3. National Archives Civil Rights Act (1964) https://www.archives.gov/milestone-documents/civil-rights-act

4. A Retrospective View of Corporate Diversity Training From 1964 to the Present https://www.wintersgroup.com/corporate-diversity-training-1964-to-present.pdf

5. Why Is Diversity and Inclusion Important? Diversity in the workplace statistics https://learning.linkedin.com/resources/learning-culture/diversity-workplace-statistics-dei-importance

6. A Study Finds That Diverse Companies Produce 19% More Revenue https://www.forbes.com/sites/annapowers/2018/06/27/a-study-finds-that-diverse-companies-produce-19-more-revenue/?sh=577ee9a3506f