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Diversity, equity and inclusion (“DEI”) is losing momentum in the United States as a result of pushback in the courts, according to a new report from DEI consulting firm Paradigm.

Its related ideology environmental, social, and corporate governance (“ESG”) is also losing momentum as a result of backlash from members of the Republican Party also known as the Grand Old Party or GOP.

In February, House Republicans created a new working group to further their pushback against ESG.  In June the newly formed Republican Environmental, Social, and Governance Working Group released an interim report outlining “Republicans’ efforts to protect the financial interest of everyday investors from progressive activists who are using [American] institutions to force a far-left ideology on Americans.”

However as we previously warned, ESG is not going away it is simply rebranding itself as “sustainability” and “climate-related risks.”

The following is an article originally published by American news website Axios.  We have taken the liberty of [adding some comments] and further resources on this subject.

US companies’ diversity, equity and inclusion efforts are losing momentum this year after the Supreme Court’s June affirmative action ruling, per a consulting firm’s new report.

The slowdown is a reversal from the explosion in corporate DEI after George Floyd’s killing pushed companies to act to address racial inequality.

• “2023 has undeniably shifted the DEI landscape for years to come,” write the authors of a report out Monday from DEI consulting firm Paradigm.
• “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.”

In June the Supreme Court struck down affirmative action in colleges – ruling that schools can’t explicitly consider race in the admissions process.

Since then, the group that brought that case – American Alliance for Equal Rights – sued two law firms, challenging minority fellowships that were open only to students of colour, those who identify as LGBTQ+, or those who have disabilities.

The Alliance argued the fellowships discriminated against other groups – like white people, straight people, or those who do not have disabilities.

The group also sued a venture capital fund, the Fearless Fund, for investing solely in Black women. (The case is working its way through the courts.)

In response, this fall, the law firms revised the programs, broadening their criteria to all law students at a certain stage of school. The suits were dropped.

• Another major law firm – which had not been sued – proactively changed its fellowship.
• The fellowships were meant to bring more minority law students into firms’ hiring pipelines, as Big Law is among the least diverse professions.

Meanwhile, in a letter this summer, 13 Republican state attorneys general urged Fortune 100 companies to take another look at their DEI programs in the wake of the court’s decision.

The letter takes aim at “explicit racial quotas in hiring, recruiting retention, promotion and advancement.”

The lawsuits and letters “will have significant downstream consequences for DEI for years to come,” per the Paradigm report.

Paradigm also says that companies have de-prioritised DEI as the hiring frenzy of the past few years has slowed.

The DEI backlash comes on the heels of another related acronym freakout, over corporate ESG.

• Both terms have become increasingly politicised and weaponised. [Note from RW: From the outset, the ideology of DEI and ESG was politicised and weaponised, however, it was not reported in these terms until the agenda and its proponents were exposed.  See an article we previously published titled ‘UK’s largest wealth manager has been charging customers for services it doesn’t provide’]
• But corporate DEI is essentially the practice of making sure employers are treating workers fairly, said Joelle Emerson, Paradigm CEO. It’s about “fair outcomes” in hiring and promotion, she said. Its meaning gets twisted in the discourse, she added.

[Note from RW: As CEO of a company whose sole business is making money from DEI, Emerson is using fluffy language to sugar coat this destructive ideology. The fixation to prioritise employment for one group automatically discriminates against another. It is “check box” diversity which is bad for people, society, companies and economies.  It is affirmative action or reverse discrimination and is unlawful when put into effect in the absence of a demonstrated history of discrimination.]

For its report, Paradigm looked at anonymised data from 148 clients – about a third were in technology, and about a quarter were large firms with 1,000-10,000 employees. The firm also relied on insights and conversations with other clients.

• Those in the study were motivated companies already working with a DEI consultant, but the report was a mixed bag. Companies cut spending on DEI budgets from the previous year, and fewer firms had a DEI strategy.
• On the flip side, more firms had hired a senior DEI leader – and about 40% of firms track race/ethnicity representation.

However, a backlash is rising, possibly because the DEI efforts made in 2020 had a real impact.

• 94% of the headcount increase at large firms in 2021, from the previous year, stemmed from hiring people of colour, according to a Bloomberg analysis of 88 S&P 100 firms.
• Many companies, for their part, still say they’re committed to diversity, equity and inclusion.

Further reading on The Exposé:

• Lockdowns, NetZero and ESG Policies Won’t Stop Climate Change – They Will Destroy Lives
• BlackRock and Vanguard come under fire from 19 US States over ESG ideology
• ESG – A Potent Force for Evil
• Is BlackRock rebranding ESG as climate-related risks?