Risky Business
Over the last two years, we’ve watched political activists relentlessly trying to blow up efforts by business, government and non-profits to engage a diverse talent base by building more inclusive cultures. As I noted last week, this effort has been undeterred by the resoundingly positive bottom-line results these initiatives continue to show.
Many alleged examples cited by the anti-woke contingent to prove that DEI is running amok are as ludicrous as they are audacious. In classic Shock Doctrine fashion, they seek to exploit any disaster that dominates the news in an effort to convince their followers that DEI lies at the root of the latest thing that’s gone wrong in the world.
Thus last week’s fatal airline collision in DC, January’s catastrophic wildfires in LA, Hurricane Helene in September, and the collapse of the Scott Key Bridge last March have all served as fodder for activists and politicians eager to slow the progress of people traditionally outside the mainstream of power. Conveniently, their harangues also serve to advance their own agendas, platforms, and fortunes.
What’s lost amid all the ranting is the actual human cost of these tragedies– the blameless, hardworking people who lost their lives, communities, or homes, or who failed to get or seek help because of disinformation. Their losses make clear that blaming DEI is not only wrongheaded, but dangerous and cruel.
In a 2024 post, I disputed the then-widespread expectation that political pressure would blow up corporate commitment to DEI. I did so by drawing a key distinction between how business and politics operate. The distinction is worth repeating in today’s ramped-up and fearful climate.
1. Business and politics have different hiring needs. Politicians, and the interest groups and activists who back them, don’t need a lot of hires. Nor do they typically need staffers whose views and backgrounds differ from their own. That’s because, in the social media era, motivating a die-hard core tends to be a more successful vote-getting strategy than attempting to convince a wide swath of people that you can get stuff done and have their interests at heart.
By contrast, the organizations that have put DEI on the map often have massive hiring needs, so they benefit by casting a wide net when it comes to talent. And because their customer base is varied, they need people with varied values, experiences, and talents in order to prosper. This is simply good business.
So whereas decades ago conformity to a corporate ideal was widely seen as an asset, a decade of research linking diverse perspectives and backgrounds to innovation, creativity, psychological safety, and high-functioning teams has made the conformist approach obsolete. Potential hires tend to be viewed as a good fit today because they bring experience, views, or perspectives that have been missing rather than because they fit in
2. Organizations and politicians sell different products. While some political leaders prioritize making life better for those they represent–which routinely results in the media dismissing them as dull– a growing number focus their efforts on stirring controversy, fomenting division, and provoking outrage in an effort to compel notice and serve those most engage among their supporters. Organizations, by contrast, are most likely to thrive because they offer reliable products or services, have robust distribution networks, maintain their ability to stay ahead of the market, and train their people well. Capturing attention may draw first-time customers, but it will not keep them. Only quality products and services delivered by motivated and engaged employees can do that.
As investor, shark-tanker, and sports executive Mark Cuban remarked last year, good businesses look where others don't to find employees who will put them in the best possible position to succeed. Cuban “takes it as a given that there are people of various races, ethnicities, orientation, etc. who are regularly excluded from hiring consideration. By extending our hiring search to include them, we can find people that are more qualified.” Note that he says more qualified, not equally. A legendary competitor, Cuban added, “The loss of DEI-phobic companies is my gain.”
So yes, Cuban and other practitioners do gain a competitive edge by implementing DEI. Their businesses benefit, but the culture benefits as well.
Viewing the latest noisy and transparent attempts to discredit DEI as anything other than politically motivated tactics masquerading as outrage is risky business indeed. The hijacking and politicization of good faith efforts to do everything from running research programs at the CDC, to providing federal emergency assistance and patrolling the skies at our nation’s airports threatens every last one of us. The more strongly we push back to expose the hypocrisy– and its bad implications for business– the more strongly we will rise together.
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