Chapter 28 – Corporate Social Responsibility
28.7 Diversity, Equity, and Inclusion (DEI)
Diversity, equity, and inclusion (DEI) refers to efforts by organizations to create fair, welcoming, and representative workplaces and communities. Diversity emphasizes the presence of differences among people, including race, gender, age, disability status, sexual orientation, and cultural background. Equity involves ensuring fair treatment and access to opportunities by addressing barriers that disadvantage certain groups. Inclusion focuses on building environments where individuals feel respected, supported, and able to contribute fully.
Connection to CSR
DEI is often considered part of CSR. Just as CSR asks companies to reduce environmental impact, invest in local communities, and act responsibly toward stakeholders, DEI requires organizations to examine how they treat employees, customers, and people who live in the areas they serve. Many employers see DEI as a way to create fairer workplaces, strengthen teams, and improve decision-making by bringing in a wider set of perspectives and experiences.
For some businesses, DEI and CSR strategies are carried out together. For example:
- Cleveland Clinic has created workforce development programs that recruit and train residents from nearby neighborhoods for health care careers.
- Sherwin-Williams, headquartered in Cleveland, partners with local organizations to expand internships and career pathways for first-generation college students and students of color.
- KeyBank supports community nonprofits that work on financial literacy and small-business development in underserved areas while also running internal DEI training and advancement programs.
These efforts extend beyond internal hiring goals. They reflect a broader belief that responsible business practices include how companies contribute to the economic and social health of the communities where they operate, not just their bottom line.
Political Backlash & Policy Changes
While DEI programs have expanded over the past two decades, they also face substantial criticism. Some opponents argue that DEI efforts go beyond the proper role of business or give certain groups an unfair advantage. This backlash has led to a wave of legal and policy changes across states and at the federal level.
Several states have passed laws that limit or ban DEI offices, restrict certain types of training, or narrow the ability of public institutions to gather and use data related to diversity. These laws commonly prohibit mandatory training or the use of public funds to support DEI staff. At the federal level, recent executive actions have tightened what agencies and federal contractors may include in hiring practices or staff development. Taken together, these actions show how divided policymakers remain on the question of whether organizations should address issues tied to diversity and equity.
When Some View DEI as Going Too Far
A common example used by critics to portray DEI as extreme involves mandatory training sessions that ask employees to participate in activities they find uncomfortable or overly personal. In some organizations, outside consultants have led exercises that require employees to sort themselves by racial identity or speak about their own “privilege” in front of coworkers. Supporters saw these activities as opportunities for reflection; opponents argued the methods were inappropriate because they asked people to share sensitive information, made some feel singled out, and created pressure to agree with ideas they did not fully support.
Outlook
For companies, the future of DEI is mixed. In some industries, DEI continues to be woven into hiring, retention, and community engagement strategies. Other organizations are scaling back or reshaping their programs to comply with new laws or sidestep political controversy, sometimes replacing formal DEI efforts with broader leadership or workplace-culture training.
For students preparing for CSR-related careers, it is important to recognize both the possibilities and the limits. DEI will continue to evolve, and it will remain part of how many organizations think about fairness, representation, and their responsibilities to the communities they serve.
