The Decline of DEI?

In today's society, the principles of diversity, equity, and inclusion (DEI) are being scrutinised in every corner.

Nowadays, diversity, equity and inclusion (DEI) is being questioned everywhere we look. Globally, we have seen examples of DEI leadership positions being axed or reduced, as companies seem to be engaging in what can be seen as an over-correction to some socio-political trends of the last three to four years.

The Rise of Woke

Firstly, let’s get something straight – the current popular definition of the term “woke” is incorrect. Woke is not a pejorative, catch-all term for everything that is considered non-standard or non-traditional; it was an admonition to people of predominantly African-American backgrounds to keep “aware and actively attentive” to issues affecting them. 

Calling everything under the sun “woke” does a massive disservice to everything it seeks to include as woke (read – left-wing, liberal, etc). For instance, some segments choose to call anything relating to human rights as woke and anyone who is advocating for such is fuelling woke identity politics. Even advocating for immediate addressing of global warming has strayed into the woke-sphere, even as natural disasters and extreme weather increase at a frightening pace! 

The Watershed Moment

The unfortunate and brazen killing of George Floyd was the moment that accelerated several social and political causes. Companies, rightly or wrongly, responded to the moment in part by elevating the importance of the issue by pushing to either promote or hire more people of colour in senior and leadership positions. While many met these developments with positivity, many still were very critical of them and some want it removed entirely.

What to do about DEI 

Getting back to DEI though, I would like to make the argument that we need to be careful about how we decide to navigate through this current period. There is no end to the research and data that suggests that having diverse boards, executive teams, and general workforces is very important and drives positive economic and strategic outcomes for companies.

Now there may be some legitimate criticisms about the implementation of DEI in some quarters but suggesting that DEI does more bad than good is lazy in my opinion. What that ideal implementation looks like will vary by organisation, but what I will say is that every organisation needs to have a theme of DEI embedded in its hiring, retention, training and outreach and there are straightforward reasons for this.

1. Very few companies, globally, cater to just ONE demographic. By demographic, this includes race, gender, age, etc. The world is 8 billion-strong population-wise, with a myriad of different cultures even within races and quite frankly it would be naïve for businesses to want to cut themselves off from whole customer groups.
2. Diversity is not just a physical attribute. Other forms of diversity are often forgotten when this DEI discussion is had. One of those is diversity of thought, which is probably one of the most powerful forms available and this in my opinion is what tips the scales. Diversity of thought is influenced by race, culture, background, socioeconomic status, and many other aspects. However, it is manifested by ideas and opinions, which can help move needles. 
3. Equity and Inclusion are not about handouts. There also seems to be this counter-narrative that the E&I means that because you are Asian or Latin-American (for instance), you get positions and perks without even trying. Not even close to true. The thing that many opponents of DEI don’t realize is that any given role being advertised can be filled just as well by people of diverse backgrounds and that the DEI effort is to deliberately expand the net, rather than exclude white people. This is a way to increase competition, which is the cornerstone of capitalism.

Keep an open ear and open mind. Not every good societal change comes the way we expect or like, but it is necessary nonetheless. Moving the world forward is about opening doors and arms, rather than becoming insular and close-minded. 

Ighosime Oyofo is an experienced emerging markets investment banker with a track record in financial institutions, telecommunications, infrastructure, consumer goods, industrials, real estate and education. He has worked across project and corporate finance, strategy, capital markets, SME and M&A advisory for the past 15 years. He has been involved in deal structuring, execution, valuation, due diligence, senior relationship and stakeholder management, origination and business development.