Part 3/4:
The Pushback and Risks
In recent years, DEI efforts have seen an uptick in pushback, with more than 100 bills introduced in 30 states aimed at restricting these initiatives. Executives are increasingly wary of taking public stances on social issues, as they believe it poses legal risks to their businesses.
The Financial Implications
U.S. companies spend an average of $8 billion a year on DEI, and the budgets for these initiatives are being cut in the face of backlash. However, business leaders remain supporters of DEI, while shareholders and board members are less likely to prioritize it, as they have a fiduciary responsibility to their shareholders.