For the “Summer Forum” organized by the editorial team at Maddyness, we asked experts to share their insights on the future of business and society. Forum proposed by Damien Didier, Head of Sustainability, Daphni.
As the U.S. elections draw near, initiatives related to DEI (Diversity, Equity, Inclusion) have faced an unprecedented and growing backlash since the beginning of 2024. DEI is a fundamental pillar of the “S” dimension in ESG, and is crucial for mainstreaming corporate social responsibility and social justice. From our perspective, companies that embrace DEI will thrive thanks to stronger employee engagement and more diverse strategic visions. This approach will make them more resilient. A diverse board of directors and workforce enrich decision-making, foster innovation, and enable better responses to the varied needs of clients and partners.
In the United States, DEI is often criticized as “wokeism” and encounters resistance from companies in the most conservative states or sectors. Several large American corporations are pulling back from their DEI commitments due to legal challenges, political pressures, and deprioritization of these issues. John Deere, for example, scaled down its DEI initiatives following market backlash. Microsoft, Zoom, Meta, and Google have reduced their DEI teams, raising questions since these companies were previously leaders in the field, serving as testing grounds and role models.
Elon Musk and the founder of Lululemon have been outspoken critics of DEI, pushing corporate America to focus more on minimum compliance than on social justice. Fortunately, it is worth noting that investors and prominent figures such as Rosalind Brewer, Mary Barra, and Mark Cuban remain committed despite the backlash in this area.
On the other side of the Atlantic, Europe — particularly the Nordic countries, Germany, France, and the United Kingdom — strongly supports DEI, driven by regulatory frameworks and motivated by recognition of its long-term benefits. These countries stand out for their comprehensive DEI policies, supported by the Corporate Sustainability Reporting Directive (CSRD). They view DEI as essential to ESG commitments and pay close attention to inclusive work environments and systemic biases.
Germany and France emphasize gender equality and the representation of women in leadership positions. France requires companies to implement strategies to promote gender equality and to reduce disparities in career prospects and pay.
DEI will continue to evolve under the influence of various political, social, and economic factors. The U.S. elections could significantly impact DEI efforts, potentially restricting initiatives to each company’s internal scope in a climate that no longer values ESG as much, in order to avoid possible tensions with partners who would not support such efforts absent legislative or regulatory requirements.
Discover Maddyness' article: https://www.maddyness.com/2024/08/09/deux-continents-deux-realites-linclusion-et-la-diversite-en-recul/
