Several large corporations like Target and Wal-Mart have rescinded their formal DEI programs in recent months, presumably to comply with mandates and warnings by the current federal government administration. Nonetheless, a recent report shows that while corporations may be backing away from official DEI programs, they continue to embrace DEI principles in a less obvious manner.
Recruiting firm BarkerGilmore reports that, despite reductions in DEI commitments by high-profile corporations over the past year, diversity remains central to most corporations’ hiring practices. The firm’s clients reportedly remain committed to recruiting and maintaining an inclusive workforce.
For example, John Deere made headlines last summer when it announced that it would no longer support or participate in external events aimed at social or cultural awareness. However, the company still prides itself on maintaining a diverse board of 36% females and 18% racial minorities. The company also expressed frustration at dueling shareholder proposals, one safeguarding and promoting DEI and the other starkly opposing it. As a result, it appears that John Deere wishes to strike a balance between the two, although it acknowledges that wholly accommodating two opposite viewpoints on this issue is impossible.
Citigroup also recently tried to find some middle ground when it renamed its “Diversity, Equity, and Inclusion and Talent Management” team as “Talent Management and Engagement.” The company appears to be trying to avoid the wrath of shareholders, customers, and the current federal government administration.
Upon taking office, Trump issued a slew of executive orders targeting DEI policies, including the removal of DEI requirements for government contractors and subcontractors. One executive order even demanded that federal agencies investigate corporations with DEI programs for illegal hiring or promotion practices.
Although at least one federal court has blocked certain provisions of these executive orders relating to DEI, corporations like Citibank are still trying to avoid being singled out for a criminal investigation or scathing criticism by Trump. Therefore, any changes in policies or employee management practices by corporations must somehow balance the opinions of shareholders, customers, and, increasingly, the federal government.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
Hall Benefits Law, LLC
