Organizations around the globe have been focusing their attention on broadening the scope of their diversity, equity, inclusion, and belonging (DEIB) programs and have actively been working on diversifying their teams. This push for expansion has caused a significant increase in corporate chief diversity officer (CDO) roles. This has been further substantiated in the 2022 McKinsey survey, which indicated that DEIB positions in the U.S. multiplied fourfold in the past five years.
Interestingly, it appears that more corporate DEIB programs will potentially face legal challenges following the US Supreme Court decision that ended the practice of race-conscious admissions in higher education. The full repercussions and extent of the ripple effect are yet to be seen. However, it is certain that multiple legal challenges predictive of considerable uncertainty are on the horizon.
Due to this potential legal turbulence, organizations should rethink the profile and mandate of their CDOs. These professionals will not only be focusing on HR functions and talent recruitment but will also need legal expertise to navigate this evolving landscape successfully. This need explains why several leading law firms expanded their practices to include DEI consulting and why we can expect this trend to continue.
DEIB executives with a legal background are ideally positioned to drive initiatives while ensuring that a company integrates best practices within the constraints of a complex legal landscape. They would have a firm understanding of the regulatory implications and potential employment issues of each decision like the DEI components in the Sarbanes Oxley Act. Furthermore, they will also be evaluating risk – legal, reputational, and financial – on a larger scale.
As the legal landscape around diversity continues to evolve, organizations can use this opportunity to clarify expectations and define the role of the CDO. The current backlash against DEIB programs has underscored the need for the role to have a dual focus – attracting and retaining diverse talent while helping navigate a complex legal landscape. This intersection of DEIB initiatives and legal acumen is where attorneys are best poised to lead, allowing corporations to continue advancing and developing their DEIB initiatives.
This article was originally published on Bloomberg Law and authored by Deborah Ben-Canaan and Margot Jackson of Major, Lindsey & Africa.