Eric Holder, speaking at the Economic Club of New York, recently addressed concerns surrounding the impact of the Supreme Court’s June 2023 decision against race-based admissions in universities on corporate Diversity, Equity, and Inclusion (DEI) efforts. The former Attorney General, now a partner at Covington & Burling, suggested that the ruling might not extend to the business sector, highlighting the Supreme Court’s exemption for military service academies as a precedent for potential business-related carve-outs. Holder pointed out that if companies can demonstrate how diversity initiatives positively affect their bottom lines, they might persuade the judiciary to consider exceptions for business DEI practices as well.
Holder emphasized the increasing recognition of the economic benefits associated with diverse businesses amid demographic shifts in the U.S. He advised companies to adopt a data-driven approach to DEI, focusing on the recruitment, retention, and promotion rates of diverse employees to defend their initiatives effectively. Moreover, Holder shared insights into conducting DEI assessments, combining quantitative data and qualitative feedback to evaluate a company’s DEI performance comprehensively.
Despite the political controversies surrounding DEI, Holder noted that companies engaging in transparent DEI reporting have not faced negative repercussions. However, he identified a common shortfall in the lack of a unified strategy in implementing DEI programs. To enhance the effectiveness and efficiency of DEI efforts, he advocated for better coordination and centralization.
Holder also touched upon the importance of DEI in shaping public perception and advised companies on proactive reputation management. He recommended conducting “tabletop exercises” to prepare for potential crises, underscoring the need for companies to anticipate and address issues before they escalate into public controversies. Holder’s remarks underline the significance of strategic DEI planning and the potential for businesses to navigate the evolving legal and societal landscape post-Supreme Court decision.
