Why bosses are 'nervous' about corporate diversity

Stonewall became part of the problem, demonizing anyone who disagreed with its gender politics, says Simon Fanshawe. Photo: SOPA Images/Contributor Getty Images

According to the co-founder of one of the UK's most active LGBT charities, Stonewall, company leaders are starting to realize they didn't quite think everything through when they first set up their diversity, equality and inclusion initiatives ( DEI).

Simon Fanshawe, who was one of six activists who set up the group, said he was increasingly seeing a shift in attitudes about the role diversity schemes should play in corporate Britain.

p>»It seemed like a given [in the past], but now they're saying, 'I'm actually not convinced that a major retailer should take a stance on anti-conversion therapy,'» he says. «Because what does this have to do with the price of beans?»

It's a debate being waged in boardrooms across the country as HR executives admit among themselves that some of their colleagues have embarked on passion projects which have little to do with the workplace.

As some US executives say the biggest companies are slashing their DEI budgets, UK executives are grappling with which path to take next.

Some are concerned that advice they have taken on diversity may have skewed human rights laws. equality, which is why non-accredited companies do not pay enough attention. external training providers.

Others worry that DEI teams are simply silencing those with different opinions, rather than striving to improve the diversity of their workforce.

Fran Itkoff, a 90-year-old California woman who has volunteered for a multiple sclerosis charity for more than 60 years, said earlier this year that her services were no longer needed after she told a colleague she didn't understand why. she needs it. add she/her pronouns to her email signature.

The National Multiple Sclerosis Society confirmed at the time that she had been “asked to step down from her role due to statements that were seen as inconsistent with our inclusivity policies.”

The subsequent backlash prompted the charity to apologize for what it called a “mistake.”

The firing of an elderly volunteer sums up the staffing dilemma some companies now face as individuals take matters into their own hands.

It was «DEI, very good» at first, notes Fanshawe, but few take it seriously thought about how these programs would work in practice.

The equality consultant believes that many programs are ineffective or no longer effective. used as a «platform for activism».

He believes the charity he helped set up in 1989 has become part of the problem, demonizing anyone who disagrees with its gender policies.

p>“I've always said that the problem with Stonewall is not what they campaign for, but how they campaign,” Fanshawe says. “I'm tired of hearing Stonewall say I'm the wrong gay.”

Harry Potter author JK Rowling has previously criticized Stonewall for promoting transgender stories to young children and accused politicians of «snuggling» to charity.

The CEO of one 750-person company admits it's «one of the hardest areas in business right now, because you're damned if you do it and damned if you don't.»

Fanshawe is seeing a shift in attitudes about the role diversity schemes should play in corporate Britain. Photo: Simon Dack News/Alamy Stock Photo

For example, organizations that link executive pay to diversity goals are often praised by some and criticized by others.

Retailer Asos abandoned the policy last year amid pressure to reprioritize profits.

As companies roll back some of their diversity policies, HR professionals are concerned that important conversations about improving diversity in the workplace are being overshadowed by debates about sensitive areas such as gender identity.

Issues like these are often framed as a battle between right and left, although polls show few approach the topic through a hyper-political lens. According to a previous survey by think tank More in Common, the most common starting point is compassion.

“They understand that life can be difficult for many transgender people, and most believe that we as a society have a responsibility to make it less difficult. None of the people we spoke to across the ideological spectrum viewed the debate as a battle,” the think tank concluded after surveying 5,000 people in 2022.

However, with employees being fired for promoting certain views on transgender issues, and companies going to desperate measures to secure a spot on Stonewall's annual equality rankings (such as removing the word «mother» from maternity policies), these sentiments are not necessarily reflected at work.

There are concerns that while DEI efforts may amount to more than just checking a box in some cases, in others they simply go too far.

Senior executives who want nothing to do with anyone say they will soon find themselves in the spotlight.

Neil Morrison, chief people officer at energy giant Severn Trent, believes DEI issues will soon become » everyone's job» as companies change tact and cut costs in this area.

He expects more organizations to cut their DEI leaders and instead declare that «diversity is everyone's responsibility.»

DEI initiatives in general are already sliding down the ladder of importance.

Earlier this year, Zoom told employees it was disbanding DEI team due to layoffs, reflecting a broader trend in the West.

Overall, DEI jobs in America fell 8% in the first six weeks of the crisis. According to Revelio Labs and The Washington Post, 2024 is expected in February.

This comes as companies like Meta, Tesla, Lyft and X have cut their respective DEI teams by 50% and more.

<р>“I spoke with several people in the Chief Diversity Officer (CDO) network in New York who have seen many chief diversity officer positions get pushed aside midway through the hiring process when CEOs are nervous about continuing to lead the function.” , says Amanda Rajkumar. , who was Adidas' global chief people officer and the only female executive on the board until her departure last year.

“I’ve also seen some chief digital officers who reported directly to CEOs revert back to reporting to HR leaders. Some believe the pendulum has swung too far and a reset is needed.”

Sensing change, UK executives and HR directors are seeking confidential advice. Tanja de Grunwald, who advises companies on human resources issues, puts together a plan of action for boards of directors who don't know what to do next.

Her list of issues that need to be addressed grows longer every day. she says, from a lack of adequate legal training to workshops that are never vetted by a third party.

“DEI started out with good intentions, but clearly not enough barriers were put in place, leaving it vulnerable to politicization,” says de Grunwald, arguing that there needs to be more nuance in the conversation.

Some believe that a major review of gender identity, published by pediatrician Dr. Hilary Cass last month, provides indirect support for the need for free speech and could give senior leaders confidence to ask more pressing questions.

Others may also be influenced by their counterparts in America, where the president of the country's largest HR organization, the Society for Human Resource Management, noted in December that DEI policies «will be under full-scale attack in 2024.”

That week, Elon Musk wrote on his social media page X that “DEI must die.”

Urban investors disagree. One finance executive says he agrees with rethinking DEI, but only if it doesn't undermine vital diversity policies.

«It's a pause for thought,» he says, noting that it makes sense for executives now discuss where the pitfalls might be in their diversity plans.

“Important environmental, social and governance (ESG) issues such as climate change and inequality continue to be of great importance. People who think this is part of the winding down of ESG are wrong – this is here to stay.”

As conversations about how to manage DEI grow louder, diversity consultants warn that any change won't be easy.

Fanshaw worries that leaders may be so afraid to fight back. initiatives from which many may well conclude: “You know what? It's too much trouble.”