Exposed: Big Brands Like Nike and Amazon Abandoning DEI

Even before the Black Lives Matter movement, more than half of all workers believed their company needed to improve diversity, while more than 75% of job seekers actively sought out companies distinguished for their diversity policies. Nevertheless, and even with a record number of companies announcing a new devotion to diversity, equity and inclusion in 2020 and 2021, “those commitments have not yet translated into tangible results,” according to the World Economic Forum. In fact, only one in five companies “holds itself accountable for DEI in its business practices” and 40% still see diversity as “primarily an issue of compliance.” Following the longest period of sustained protest in US history, corporate diversity, equity and inclusion hires did increase by 55%; however, more than three quarters of chief diversity officer roles were awarded to white people, and the attrition rate for all DEI positions reached 33% by the end of last year — compared to 21% for non-DEI roles. 

Disingenuous DEI

For Chris Metzler, senior VP of corporate DEI and environmental, social and governance strategies at the National Urban League, this influx of DEI hires was “disingenuous,” leaving the DEI role “weakened to the point of being toothless.” Elizabeth Leiba, author of I’m Not Yelling, agrees, likening DEI in a recent LinkedIn post to the very same police that killed George Floyd. 

“As a Black person in America,” Leiba says, “I find it ironic, pathetic and sad that DEI, born out of the desire to protect OUR right to be in predominantly white spaces after The Civil Rights Movement, has become a BILLION dollar industry led mostly by white folk.” Indeed, according to a 2023 study by Zippia, less than 4% of chief diversity officer roles are held by Black people. Black women, who are most discriminated against in office environments, are least likely to be hired for DEI leadership positions; when they are, they must typically report to a white woman (or man) heading up HR. 

“It’s increasingly becoming a dead-end job,” says Metzler. “Corporations are saying one thing and demonstrating something else. It’s going back to checking the box.” 

In case you missed it, checking the box doesn’t work. It’s what got us here in the first place. 

For decades, brands believed hiring a diverse workforce was enough — and met their legally mandated goals mostly out of necessity, not as part of a strategic business plan. As Getting to Diversity co-authors Frank Dobbin and Alexandra Kalev explain in Harvard Business Review, “despite a few new bells and whistles, courtesy of big data, companies are basically doubling down on the same approaches they’ve used since the 1960s — which often make things worse, not better.” 

Firms have long relied on diversity training to reduce bias on the job, hiring tests and performance ratings to limit it in recruitment and promotions, and grievance systems to give employees a way to challenge managers. Those tools are designed to preempt lawsuits by policing managers’ thoughts and actions. Yet laboratory studies show that this kind of force-feeding can activate bias rather than stamp it out.

Indeed, three decades’ of data from more than 800 US companies proves it is far more effective to focus on fixing broken systems — like shallow recruitment pools or biased training practices — than to focus on individual employees. And yet, to this day, about six decades after the passage of the Civil Rights Act, “we find equal pay for equal work is still not a reality.” 

Black people represent 14% of the US population but hold six total Fortune 500 CEO roles and only 7% of all managerial roles. Up and down the corporate ladder, Black men earn nearly 25% less than their white male counterparts, while Black women earn more than 33% less! Worse still, job candidates with “African American-sounding names” receive 14% fewer calls for jobs than those with “white-sounding names.” 

A recent study, “Fixing the Flawed Approach to Diversity,” revealed “the diversity dilemma:” 97% of the 16,500 employees polled across eight countries acknowledged that their employer had deployed some form of diversity policy; only 25%, however, reported benefiting from it personally. 

Why? 

Fixing Bad DEI Decisions

“Identity, culture and connected consciousness are the three most essential components of consumer experience in today’s society,” Dr. Jabari “Naledge” Evans told me recently, and “DEI efforts will always fail if the focus is purely on presenting representation, versus disruption of matrices of dominance that typically loom over minorities.”

Plus, since all the big brands and their little brothers and sisters rushed to create and fill their DEI roles when public sentiment seemed to require it, only 4% of existing HR professionals even feel proficient enough to lead corporate DEI programs today.

So, perhaps the wrong people were hired and the wrong policies written.

We know that consumers today care more than ever about the values, ethics and practices of the brands they shop and support — but perhaps what’s most interesting is that the number-one way our increasingly young population is judging brands is not by their political proclamations or charitable donations but by the way they recruit, hire, train, treat and promote their employees. According to market research from GlobalWebIndex, US consumers believe brands should “spark change from the inside,” focusing on reviewing hiring policies (46%), ensuring diversity in management (45%), and obtaining feedback from employees (40%).

In other words, this can’t be ignored. It won’t go away. And it can’t be obscured with PR stunts. You need to heed reality:

• The number of “minority” workers doubled between 1980 and 2020
• Groups historically considered “minority” will reach majority status in the next two decades
• The millennial and Gen Z generations are the most diverse and inclusive in history
• Millennials and Gen-Zers will comprise more than three quarters of the workforce by 2030
• Brand reputation is dictated by the influencers who set the trends, and “companies that get ‘woke’ aren’t going broke — they’re more profitable than ever”

If the above scares you, you need to ask yourself why; fearmongering may work in DC but it’s ineffective on Wall Street and Main Street. Happy employees create happy customers, and even the greatest diversity of employees won’t be happy unless each and every member of the team feels respected, included and valued.

Plus, as Harvard Business School professor Robin J. Ely and Morehouse College president David A. Thomas explain, “being genuinely valued and respected involves more than just feeling included.” It also involves:

[H]aving the power to help set the agenda, influence what — and how — work is done, have one’s needs and interests taken into account, and have one’s contributions recognized and rewarded with further opportunities to contribute and advance.

This is why intentionality in your HR strategy, policies and practices is so critical. 

5 Indisputable Benefits of Diversity, Equity and Inclusion

With more and more big companies — like Nike, Walmart, American Airlines, Glassdoor, Wells Fargo, IBM, Amazon, and Twitter — eviscerating their DEI teams in waves of layoffs, there’s never been a better time to distinguish yourself from your competitors by reaffirming your commitment.

Not only does abandoning DEI send the wrong message to customers and employees alike, it literally loses you (and your investors) money. When you find the right leader to guide you in authentic efforts at improving DEI, you experience myriad benefits, including:

1. Amplified engagement. A study of more than 1,500 workers demonstrated that, because of the mutual trust it instills in employer and employee, “engagement is an outcome of diversity and inclusion” — and “the combined focus” on the two “delivers the highest levels of engagement” in the workplace.
2. Quicker, smarter decision making. Harvard Business Review found that diverse teams are able to solve problems faster than teams with cognitively similar people, and Cloverpop discovered that diverse teams also experience a 60% improvement in decision making quality. Neither compares to the People Management research indicating diverse teams are 87% better at making decisions.
3. Enhanced imagination and innovation. According to Forbes Insights, 85% of Fortune 500 CEOs believe “a diverse and inclusive workforce is crucial to encouraging different perspectives and ideas that drive innovation” — and another study showed an 83% increase in innovation when employees simply believe their organization is committed to diversity. Authoritative evidence came two years later when Josh Bersin, a thought leader in corporate talent, learning and HR tech, determined that “companies that embrace diversity and inclusion in all aspects of their business” are 170% more innovative (and “statistically outperform their peers”).
4. Boosted productivity. In “The Economic Value of Cultural Diversity,” sponsored by International Trade and Investment in 2004, Gianmarco I.P. Ottaviano and Giovanni Peri conclude that there’s “a dominant positive effect of diversity on productivity” and “a more multicultural” environment makes employees “more productive.” Nearly two decades later, UMass Amherst professor Orlando Richard, Vanderbilt University professor Maria Del Carmen Triana and Florida Atlantic University professor Mingxiang Li reached similar conclusions, noting that a mere 1% increase in racial diversity in upper and lower management increases productivity by between $729 and $1,590 per employee per year.
5. Increased profitability. Companies devoted to DEI earn 140% more revenue, have 230% more cash per employee, and are 70% more likely to capture a new market and 35% more likely to outperform their competitors.

Of course, if you limit the purview of even a perfect DEI director, you won’t see the desired results. So, start with what’s been proven to work, and customize from there.

5 Tips for Fostering Diversity, Equity and Inclusion in the Workplace

Over three years, researchers collaborated to create a DEI training program called UNEION, a four-part course that covers topics related to power, privilege, gender and race, and includes a three-hour, volunteer-only bystander intervention training for managers, administrators and staff on how to build inclusive teams, facilitate diversity-related conversations within their divisions and identify other practices that can promote a positive company culture. 

The program leaders recommend:

1. Focusing on intervention, not just bias reduction

Studies have shown that required bias reduction training can actually increase hostilities, and those who volunteer to participate in optional programs tend to already view themselves as diversity proponents. Instead, focus on equipping DEI program participants with the skills to talk to others about diversity, equity and inclusion, as well as intervene when they witness bias or harassment in the workplace.

2. Inviting non-managers to facilitate communication

While most DEI programs focus on HR staff or mid-level managers, research shows that organizations can better identify points of conflict and potential resolutions by inviting employees at all levels from across the organization to participate.

3. Targeting workplace issues, not personal ones

More women than men pause their careers to care for children or aging parents, for instance, so it may seem appropriate to embrace the overlap between work and home in DEI programs; however, research from as early as 1994 suggests that “trainers should treat diversity training as a business issue and not a psychological and anthropological concern.” Alternatively, work toward addressing external challenges that can impact work performance, advancement and career choice, as well as how personal identity can affect one’s experience in the workplace.

4. Never giving up, and staying accountable

In his 1994 study on “the downside of diversity,” Victor C. Thomas found that “diversity training can be most effective” if it’s “long-term-oriented. Two decades later, sociology professors at Harvard and Tel Aviv University are still recommending continued engagement and accountability using task forces, diversity managers and mentoring programs. Another method involves electing “lead learners,” tasked with holding one-on-one meetings, workshops and town halls, facilitating firmwide participation in DEI-related outreach programs and promoting team spirit among participants by encouraging informal communication and collaboration.

5. Remaining flexible

No two businesses are alike, so no two DEI programs should be alike either. Design your program with a built-in introduction and — this is the important part — leave the bulk of it to be developed by your lead learner, guided by pre-workshop surveys from participants on their interests, challenges and biases. Your facilitators, then, should be flexible in their content, as well as their structure and delivery, and continually listen, iterate and optimize over time.

Before selecting a lead learner or developing any custom curricula, though, you’ll need a DEI program developed under the guidance of a proven expert. And it starts by understanding the improvements your organization needs to make and recruiting and vetting (mostly Black women) until you find the right DEI director for your team.

5 Steps to Developing a Successful DEI Program 

Research has shown that diverse teams need a foundation of psychological safety — the belief that everyone can pitch risky ideas and challenge the status quo without retaliation or judgment — to excel in the workplace. – Agatha Agbanobi and T. Viva Asmelash, “Creating Psychological Safety for Black Women at Your Company,” Harvard Business Review, May 22, 2023

1. Do your research 

First, research yourself.

• Ensure you’re measuring your DEI efforts against the right KPIs, including (a) percentage of representation on your organization’s board, (b) percentage of representation by employee category, and (c) pay equality, or the ratio of compensation by employee category (i.e., equal pay for equal work), along with promotion and turnover rates, percentage of participation in ERGs (see below), and supplier diversity. Develop an internal dashboard for tracking, analysis and reporting. And continually analyze and adjust for gaps and opportunities in your employee recruitment, hiring, development and advancement efforts. 
• Survey your staff (there are free templates on the internet) on issues of fairness, discrimination, personal belonging, trust, respect and purpose, decision making, hiring and onboarding, diversity and inclusion, and opportunities and resources (equity). Then, analyze for gaps and opportunities in your employee recruitment, hiring, development and advancement efforts. 

Second, research what works and what doesn’t.

• Which companies are doing DEI correctly, such as Microsoft, SAP or Ultimate Software Group
• Which DEI leaders’ particular expertise seems to most closely align with your organization’s values and value statement

Although no two companies are alike, there are lessons to be learned from every successful — and failed — attempt at DEI. And, as we know, there are a variety of ways to leverage the skills and experiences of those who’ve encountered it before. 

2. Hire the right DEI director

DEI is not something you can achieve through intuition and good intention. It takes specific experience, vast knowledge, thick skin, and trial and error. More specifically, it takes leading with the needs, goals and pain points of directly impacted employees from all levels of the organization — and, typically, it takes your DEI leader being directly impacted as well.

Fortunately, a number of innovative, thoughtful and effective professionals have positioned themselves as authorities in the broadening DEI space — and rightfully so. 

1. Start with the LinkedIn Top Voices in racial equity, disability and advocacy, LGBTQ+, gender equity, mental health, social impact, and company culture
2. Reach out, schedule meetings, and solicit advice
3. Be willing to pay a consultancy fee
4. Be flexible and open minded
5. Take copious notes on the individuals whose experience, expertise, values and mission most closely align with yours

You may find your first DEI director; or, at the very least, you’ll know exactly which type of DEI director you’re looking for. (Maybe you’ve already hired her, and she simply needs a promotion!)

Once onboarded, your DEI director should lead Steps 3-5.

3. Inspire alignment

As we now know, there’s no use in forcing anyone to undergo diversity training. For your DEI initiative to work, it must be supported by your people — and the only way to earn their buy-in is to demonstrate the need and the value, or the problem and the solution. The problem for most organizations is insufficient diversity (a recruiting and hiring issue), equity (a hiring, training, development and advancement issue) and inclusion (a company culture issue); the need is improvement in all three areas. 

The value of thoughtfully constructed DEI programs can be seen in successes across industries and geographies, and the solution is to work together under the leadership of your director of diversity, equity and inclusion to customize a program that would benefit the organization and all its employees — and, specifically, employees who historically wouldn’t have felt respected, valued or part of the group. 

1. Kick off the program and initiate the discussion with a town hall on the interests, challenges and biases identified in the companywide survey
2. Ask participants to contribute ideas to the development of the program 
3. Develop the program and distribute details internally, requesting feedback online
4. Finalize the program
5. Celebrate your alignment and new commitment through public relations, marketing and advertising campaigns aimed at potential new employees and customers 

4. Build an equitable, inclusive culture from the ground up

1. Create DEI task forces with employees from all levels of the organization
2. Create employee resource groups (ERGs) for employees who share a common characteristic, such as race, ethnicity, gender, generation or religious affiliation, to provide support and expand professional networking and career development opportunities
3. Create a public-facing digital scorecard measuring and showcasing your DEI metrics over time
4. Develop DEI policies for managers and staff, including a code of conduct policy, outlining the company’s policy on diversity, equity inclusion; a communication plan, outlining non-discriminatory communication practices; a non-discrimination policy, outlining discrimination laws and what is not allowed in the workplace; a zero-tolerance policy, outlining how instances of discrimination, harassment, bullying and stereotyping will be addressed by the organization; and a grievance policy, outlining how employees can use the company alternative complaint system (see below)
5. Develop DEI workshops from the inside out, leveraging your lead learners in the creation of each workshop and training, encouraging the hard conversations; collecting all perspectives, prioritizing members of historically disenfranchised groups; promoting intersectionality, or the interconnected nature of social categorizations such as race, class, gender and sexuality in overlapping and interdependent systems of discrimination or disadvantage; focusing on intervention and not just bias reduction; and facilitating ongoing engagement through lead learner-led one-on-one meetings, workshops and town halls, as well as diversity-related outreach programs and informal information sharing
6. Create safe spaces in your workplace, such as gender-neutral restrooms for non-binary and genderqueer individuals, lactation rooms for new mothers, prayer or meditation spaces and quiet workspaces for workers who may be distracted or overstimulated by open-floor-plan seating; if you’re fully remote or have some staff working from home, you can create safe ‘spaces’ digitally by encouraging employees to add pronouns to their email signatures and usernames, inviting employees to reserve time for personal needs by blocking it out on the calendar, and honoring introverts by making digital culture events optional
7. Deploy an alternative complaint system (without one, half of all discrimination and harassment complaints lead to retaliation), providing employees with access to an employee assistance plan (EAP) for anonymous, free support, as well as implementing transformative mediation, designed to empower all parties and ensure each party recognizes the other’s needs, interests, values and points of view

5. Start recruiting, interviewing, hiring, onboarding and developing talent with a focus on diversity, equity and inclusion

1. Audit and update your website, social media accounts, content marketing and advertising to prominently highlight your commitment to doing DEI the right way
2. Write more inclusive job descriptions
3. Limit employee referrals
4. Diversify your talent pipeline by hosting online and in-person events targeting diverse populations; leveraging your ERGs for help better understanding biases and barriers; and continually collecting and analyzing data, pivoting as necessary
5. Incorporate a diverse interview panel to ensure candidates are chosen solely based on suitability
6. Train interview panelists not to ask questions about age, race, ethnicity, gender, sexuality, religion, country of origin, birthplace, address, arrest record, citizenship, credit rating, financial status, height or weight, disability, marital status, family status, or pregnancy
7. Evaluate and update welcome packages to ensure there is nothing biased, discriminatory or potentially offensive to new hires
8. Prioritize diversity, equity and inclusion throughout the onboarding process
9. Train managers and HR staff on how to provide equitable access to resources and opportunities
10. Coach teams on how to be inclusive to new hires

Image Credits (in order of appearance) 

1. Photo by Rikonavt on Unsplash: https://unsplash.com/photos/3eebt4Xsg_c
2. Photo by Clem Onojeghuo on Unsplash: https://unsplash.com/photos/mlicb5TEmUM
3. Photo by Unsplash+ in collaboration with Getty Images on Unsplash: https://unsplash.com/photos/HTFZa_OePKk
4. Photo by My Networking Apparel on Unsplash: https://unsplash.com/photos/dGq2ZCa9R2Q
5. Photo by Unsplash+ in collaboration with Michael Tucker: https://unsplash.com/photos/S2L9-6yGP-k
6. Photo by Guilherme Stecanella on Unsplash: https://unsplash.com/photos/UrS5HkBr1Rc