From Doubling Down to Doubling Back: Microsoft's Latest DEI Update

In November 2023, Microsoft made headlines by reaffirming its commitment to Diversity, Equity, and Inclusion (DEI), instructing all workers to set diversity goals in their performance reviews. However, Business Insider reported that earlier this month an internal email was sent to thousands of Microsoft employees stating the elimination of a DEI team on July 1st noted "changing business needs," suggesting that DEI programs are "no longer business critical or as smart as they were in 2020." This dramatic reversal has raised important questions about the motives behind such a pivot and its implications for corporate America.

“Our focus on diversity and inclusion is unwavering and we are holding firm on our expectations, prioritizing accountability, and continuing to focus on this work,” Microsoft spokesperson, Jeff Jones told BI in a statement."

But is it really? We have questions:

Is this simply semantics?

Are we all quietly just removing the Diversity, Equity, and Inclusion (DEI) label, but keeping the policies and commitments? Even if the language around DEI changes, the underlying policies might remain intact. Companies could continue to promote diversity and inclusion through their hiring practices, employee resource groups, and community engagements, but without explicitly labeling these efforts as DEI. For examples, the Black Dollar Index has taken on "Culture & Equity" to represent this work, but for us, the policies are still or even more important than before.

Is it chess or is everyone caving?

Are top leaders across corporations meeting behind closed doors to strategize or are they all caving to the pressures of far-right legal organizations? By retreating from a staunch DEI stance, Microsoft may be trying to appease these critics and align with a more conservative business perspective. Alternatively, this move could be a strategic pivot. By downplaying DEI, Microsoft might be trying to refocus its narrative towards other pressing business challenges or opportunities, while continuing to do the work behind closed doors.

Will Microsoft and others continue to be transparent?

Microsoft is one of the few companies that publishes a yearly Diversity Report (outside of their ESG reporting). These reports include data around Representation, Pay Equity, and updates on their Racial Equity Initiative. Will this level of transparency be eliminated as well? You can read their 2023 Diversity report here.

Preparing for the Shift

As informed consumers and stakeholders, it is crucial to stay vigilant and continue to hold corporations accountable for their commitments to underrepresented groups and the communities and customers they serve. Here are a few steps to consider:

1. Demand Transparency: Insist on clear, transparent reporting on diversity metrics and DEI initiatives. Companies should be able to demonstrate their efforts and outcomes, regardless of the terminology used.
2. Monitor Changes: Keep an eye on how companies implement changes. Are they merely rebranding their efforts, or are they rolling back critical programs and policies?
3. Engage and Advocate: Engage with companies as consumers, investors, or employees to advocate for the continued importance of DEI. Use your influence to promote the values you believe in.

The Black Dollar Index plans to continue sharing corporate data that helps consumers make the most informed purchasing decisions. And if we as consumers don't feel a corporation has us in mind, we simply don't need to purchase their products or services until they show us differently.

Please share your thoughts or answers to the questions posed. And share this article if you know someone who has some insight.