Corporate America’s diversity initiatives are here to stay, but they are being adjusted in response to lawsuits and intense scrutiny. Following the Harvard decision, a group of Republican attorneys general last year warned businesses against the use of racial quotas and preferences. Companies also face challenges from right-leaning groups using the ownership of their shares as a basis to challenge diversity programs. Another practice under scrutiny is the use of diversity training programs that bring up hot-button topics such as “white supremacy," which some say can foster antagonism. Despite the frothy legal environment, many advisers feel diversity programs are valuable and can be crafted in a way that insulates the companies from legal challenges.

Source: Wall Street Journal February 05, 2024 14:40 UTC