Woke Companies Smacked In The Face With Bidenomics Reality | DEI & ESG Ls
From Red Voice Media
Article By RVM NEWS STAFF, Original Publish Date: NOVEMBER 27, 2023
Several major corporations in the United States are rethinking their diversity, equity, and inclusion (DEI) initiatives due to tightening economic conditions (Bidenomics). According to a report by consulting firm Paradigm, the total percentage of businesses with a DEI budget dropped by 4%, from 58% in 2022 to 54% in 2023, while the number of organizations with a DEI strategy fell by 9 points. The rise of external forces, such as tightening economic conditions and public and judicial scrutiny, have contributed to the shift in momentum.
Read the full Paradigm 2023 State of DEI Report:
Despite the decline in funding, there was a 6-point increase in the number of companies with a senior DEI leader and an 8-point rise in organizations with goals related to women’s representation in leadership from 2022 to 2023. Around 20% of companies in 2023 set goals for increasing employment about race or ethnicity, a 4-point increase year-over-year.
The shift appears to be partly driven by concerns that the Supreme Court could target DEI and race-based hiring in the workplace, similar to earlier this year when the Supreme Court ruled against race-based admissions at colleges and universities. Major corporations like Disney have also suffered due to their “woke” ESG policies, with the company admitting that they have adversely impacted profitability. As reported by Townhall, ‘More from Disney’s SEC filing explains the issue (emphasis added):’
“…our revenues and profitability are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance. Further, consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brands. Consumer tastes and preferences impact, among other items, revenue from advertising sales (which are based in part on ratings for the programs in which advertisements air), affiliate fees, subscription fees, theatrical film receipts, the license of rights to other distributors, theme park admissions, hotel room charges and merchandise, food and beverage sales, sales of licensed consumer products or sales of our other consumer products and services.”
According to the report from Paradigm, individual HR leaders are further de-emphasizing data and analytics as a part of their DEI efforts. Only 26% of companies examined the final hiring outcomes by race or ethnicity, while 33% analyzed promotions similarly. Around 36% of businesses measured the attrition rate of their employees by race or ethnicity.
In conclusion, given significant economic uncertainty and other external pressures, businesses appear to be leading the charge in rethinking DEI initiatives. Companies are moving away from these policies to mitigate losses and adapt to changing market landscapes.
RED VOICE MEDIA
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