A rose by any other name might not be a rose if it refers to diversity, equity, and inclusion (DEI) programs within publicly and privately held US companies. JPMorgan Chase and Citi are among the latest Fortune 100 companies to either shutter or radically redesign their DEI programs.
Driving the change is the Trump Administration’s January 21 Executive Order entitled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which instructs federal agencies to investigate and act against any companies practicing “Illegal DEI.” Federal agencies have been tasked to “identify up to nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of $500 million or more, state and local bar and medical associations, and institutions of higher education with endowments over $1 billion.”
However, the executive order does not define “illegal DEI” and does not have the power to repeal existing DEI laws.
“Despite this unprecedented scrutiny, DEI practices that are consistent with nondiscrimination laws are not only permitted, but they’re actually critical to providing equal employment opportunities for all employees that are mandated by law,” said Michael Thomas, co-leader of the Corporate Diversity Counseling Group at law firm Jackson Lewis, during a recent firm webcast.
Nonetheless, in mid-March, JPMorgan rebranded its DEI program as diversity, opportunity, and inclusion (DOI).
“The ‘e’ always meant equal opportunity to us, not equal outcomes, and we believe this more accurately reflects our ongoing approach to reach the most customers and clients to grow our business, create an inclusive workplace for our employees and increase access to opportunities,” JPMorgan COO Jenn Piepszak told the bank staff in a March 21 memo, Reuters reported.
A month earlier, Citi CEO Jane Fraser informed her employees that the bank’s Diversity, Equity, and Inclusion and Talent Management practice has been renamed “Talent Management and Engagement.”
As part of the change, Citi will not have aspiration representation goals (except as required by local law) or require diverse slates of candidates and diverse panels of interviewers. Several lawsuits have been filed against the executive order in federal court, which will leave businesses in limbo for a while longer.
