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InSmartBudget > Leadership > Supreme Court’s Affirmative Action Decision Could Impact Corporate DEI

Supreme Court’s Affirmative Action Decision Could Impact Corporate DEI

News Room By News Room June 30, 2023 5 Min Read
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It was just announced that the U.S. Supreme Court has struck down the long-standing affirmative action practice within college and university admissions, with the court ruling 6-3 that race-based admissions policies are unconstitutional. Despite mounting evidence that indicates that affirmative action programs have actually served to increase racial diversity within higher education, critics have claimed affirmative action programs somehow disadvantage white applicants, causing “reverse racism.” The court’s decision will likely have trickle-down effects within corporate America and some states have already started to push back against diversity policies. How could the Supreme Court’s decision impact workplace diversity, equity and inclusion (DEI) efforts moving forward?

Widening Racial Disparities in Hiring

Workplace affirmative action programs have been instrumental in increasing the number of women and underrepresented racial groups, according to research. There have been corporate efforts to defund DEI programs because of financial concerns within many industries. Despite best laid plans within many industries, there is pervasive evidence that many workplaces engage in bogus and performative DEI efforts. Many companies may now be less inclined to address racial and ethnic disparities in their talent pool. The impact of workplace diversity is far-reaching and workplaces that ignore this will not remain competitive or sustainable.

Challenges with Retaining Underrepresented Talent

A failure to hire employees from underrepresented racial groups will affect retention of these same groups. A 2021 article from Great Place to Work indicates that in companies that promote diversity and inclusion, employee retention rates are 5.4 times higher. No one wants to work in an environment where they are “the only.” Having a revolving door of talent is much more costly for an organization than being able to retain, grow and develop the talent that you already have. Decentering racial and ethnic diversity in your workplace will not only make it more challenging to retain the employees you already have, but it will likely be more difficult to attract new talent from underrepresented communities.

A Lack of Inclusive Design

In workplaces where there is a lack of racial and ethnic diversity, the products and services that are created are less likely to be inclusive of varying communities and populations. An example of this: In January of 2020, Robert Julian-Borchak Williams was wrongfully arrested by the Detroit Police Department after a facial recognition algorithm falsely identified Williams as the perpetrator of a crime. The 2021 Artificial Intelligence Index Report indicates that in 2019, only 2.4% of U.S. residents with artificial intelligence PhDs were Black. It’s fair to assume that if there were more Black people working in AI, there would be better detection and more strategies to mitigate these racial disparities. Failing to prioritize racial diversity in your organization means that the products and services that are created may lack the inclusive design that would make them usable for a larger population.

Workplace Inequities will Continue to Persist

Affirmative action was designed to address the historic marginalization that different racial groups have experienced. Ending efforts to remedy and rectify this issue doesn’t mean the problem will go away—these issues will likely intensify over time. Decades-worth of progress that has been achieved since the civil rights era will be upended without mandates that require companies to ensure race is one of the factors considered when hiring. Organizations that don’t address racial disparities in hiring may also be less likely to tackle these disparities in other areas of the workplace like promotion and advancement.

Corporate America must be vigilant against repeated attempts to set the country’s progress back. Despite the Supreme Court’s conservative majority who will ultimately play a pivotal role in the future of the country, we cannot be deterred. We each have the power to use our voices to impact change. As author Reni Eddo-Lodge once wrote, “Every voice raised against racism chips away at its power. We can’t afford to stay silent.” DEI defenders: do not be discouraged by the onslaught of criticism and condemnation that seems to be growing louder. Although disappointing, the fight for equity, justice, and liberation must continue.

Read the full article here

News Room June 30, 2023 June 30, 2023
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