Source: Fortune
Summary
Goldman Sachs has reportedly scrapped DEI criteria for its board, following a federal crackdown and several state lawsuits over corporate DEI efforts. Many other companies have done the same, but CEOs claim they remain committed to creating a diverse, equitable, and inclusive workforce, even if they don’t publicly discuss it. Boards are another matter, as investors want results, and diverse perspectives are crucial in addressing challenges facing companies.
Our Reading
The numbers tell one story.
Goldman Sachs’ move to scrap DEI criteria for its board is part of a larger trend, as companies face pressure from the federal government and state lawsuits. CEOs like Ron Vachris of Costco continue to publicly affirm their commitment to diversity, but many others have scaled back their efforts. The Conference Board reports that the number of companies disclosing directors’ race and ethnicity in the S&P 500 has dropped dramatically.
Boards are training grounds for the next generation of leaders, and limiting opportunities to develop diverse talent can make it harder to find top talent. The case for diverse perspectives is compelling, especially given the challenges facing companies, such as women leaving the workforce due to caregiving costs and responsibilities.
But what’s really at stake is who gets to be in the room where it happens.
Author: Evan Null
