Environmental, social, and governance (ESG) initiatives have become buzzwords in corporate discussions as companies put more energy into their sustainability. Similarly, DEI (diversity, equity, and inclusion) has grown in prominence as organizations try to better represent the communities they serve. However, some companies and advocates are now advising to steer clear from using the terms ESG and DEI fearing backlash from anti-woke activists. The concern is that the acronyms might be seen as a signal of reverse discrimination and could potentially alienate part of their consumer base. This was the focus of a recent discussion on Law.com.
DEI consultant Richard Orbe-Austin made an interesting perspective stating that the term ‘diversity, equity and inclusion’ has started to lose favor across various industries. However, he views the problem as companies failing to fully commit to the cause rather than it being an issue with the phrase itself.
Yet, it is still unclear whether changing the labels of these movements will make a significant difference in the dialogue around them or result in tangible change in corporate behavior. As this conversation continues, it will be critical to observe if the changes in rhetoric have any impact on the pace and direction of corporate progress in these areas.