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gigatree | on: Meta's memo to employees rolling back DEI programs
Has anyone asked why so many companies seem to care so much about the appearance of DEI? And all at the same time? I know there’s cultural shifts towards that sort of thing, probably to fill the void left by religion, but does that explain why the world’s largest private equity firms push them so hard? Seems like something everyone just accepts without question, even though it’s completely out of character for people and entities who only exist to increase their own bottom line (not that there’s anything inherently wrong with that, it’s just so out of character to the point you’d think it would raise suspicion).
andrepd | parent | next
It's marketing, they judge that they will gain more by the good will earned than it costs to hire those "DEI experts". Now that the reaction is in full swing across many territories they start to cut back (see tfa).

It's all very exhausting.

ed_voc | parent | next
Could it be caused by ESG investments?

Ignorant investors check a box to put their money towards 'ethical' investments, leading companies to create DEI marketing departments to exploit the new investment pipeline.

alephnullshabba | root | parent
I'm surprised I don't come across this perspective more often. ESG funds reached 15% of the total global securities market in assets under management (although much of this was merely a reclassification of existing investments). It seems very reasonable to conclude that ESG funds/scorings became the primary market incentive driving the corporate DEI initiatives we've seen rolled out this past decade.

Publicly traded companies operate under a fiduciary responsibility to their shareholders (maximizing long-term shareholder value). For consumer-facing companies one could easily argue these initiatives are part of a broader marketing/corporate branding strategy that benefits shareholders. But, for large publicly-traded companies that don't rely on retail consumer sentiment, I presume DEI initiatives were primarily a strategy to attract investment from ESG funds and help quell potential regulatory action/political controversies

I'm ultimately not sure how reasonable my take is (I have no insider experience or knowledge) but would love to hear from someone with relevant first-hand knowledge and get their perspective

KaiserPro | root | parent
Loads of companies saw a fresh source of capital. but it had strings, you couldn't be an evil mining company, use exploitative labour practices or generally be shitty.

Obviously thats hard to do and still maintain a massive profit, so some did the next easiest thing to greenwashing: hiring some DEI consultants and PR people to take some photos of the three employees with blue hair and melanin.

ESG is still a thing, despite some finance bros making a fuss.

myroon5 | root | parent
> couldn't be an evil mining company, use exploitative labour practices or generally be shitty.

ESG ratings champion companies in industries killing millions: https://freebeacon.com/latest-news/how-tobacco-companies-are...

reminiscent of the comic of people being bombed in awe that 'They say the next [bombs] will be sent by a woman!'

jeffbee | parent | next
Companies care about attracting all segments of society because if they can expand their applicant pool they will pay less for labor. If I am the only person smart enough to recruit qualified graduates from HBCUs then I get to be more selective in hiring and I also get to offer less wages but still fill the position.
energy123 | root | parent
Companies also want to be in the middle of the pack when it comes to sociocultural norms. There is safety in numbers. When everyone was adopting DEI initiatives, it was the safest for you to do it too. Now that everyone is abandoning DEI initiatives, it's also the safest to abandon it. There is no upside in being the fastest when it comes to bucking society's norms.
iforgot22 | parent | next
Yes, this is asked a lot, and I've always assumed it was legal pressure. If a company doesn't have enough of X demographic, they can be sued for discrimination, while at the same time it has been illegal to hire based on race. This time the legal pressure in the opposite direction is more obvious.
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