Businesses Begin Abandoning DEI Initiatives

Amid successful conservative boycotts of several major corporations, there has been a significant decrease in “Diversity, Equity and Inclusion” (DEI) initiatives in 2023 from the previous years.

While the far-left within institutions, organizations and government has desperately tried to push DEI initiatives on private businesses, their efforts have led to inferior products such as “woke” Hollywood movies that have failed at the box office — as well as successful boycotts of businesses pushing “woke” ideology like Bud Light.

Now, a report from the consulting firm Paradigm has revealed that the total number of American businesses with a DEI budget is down four points, dropping to 54% in 2023 from 58% in 2022. The report also revealed that the number of American organizations with a DEI strategy is down 9%.

“After two years of unprecedented investment sparked by 2020’s racial justice movement, this year, global momentum around DEI slowed,” the report stated. “There are a number of headwinds contributing to this shift: the first is economic uncertainty that not only led to reduced spending across the board, it also firmly shifted the power balance back to employers.”

The so-called “racial justice movement” that the report is referring to was the George Floyd riots of 2020, where far-left agitators from Black Lives Matter (BLM) and ANTIFA killed dozens of Americans and destroyed cities across the country to the tune of roughly $2 billion in damages.

In response to those riots and the demands of the far-left, many businesses fell in line with the DEI agenda — pushing the “woke” political narrative on issues such as race, feminism, transgenderism and other LGBT issues.

Now, as Americans are growing tired of big corporations pushing politics alongside their products, companies have begun to backtrack on DEI.

However, they have not completely given up on the issue — as the report noted that despite the decline in funding for DEI programs, there was still an increase in DEI-related hiring this year. In 2023, the number of companies with a senior DEI leadership position increased by 6%, while the number of companies emphasizing the necessity of women in leadership roles increased by 8%. The number of companies dedicated to increasing the number of non-White employees also increased in 2023, rising by roughly 4%.

Paradigm also reported that companies are concerned about increased legal repercussions surrounding their DEI push, especially in light of the Supreme Court’s historic decision overturning affirmative action in colleges and universities. While the ruling only applied to race-based admissions in higher education, there have already been several lawsuits filed against companies citing the language of the ruling — arguing that the same race-based practices within private companies are also unconstitutional.

“Over the past several months, we’ve heard from a number of HR leaders who are de-emphasizing data and analytics as a part of their DEI efforts, in response to the changing legal landscape and increased scrutiny on DEI efforts,” the Paradigm report added.

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