Black Caucus Issues New Guidelines for DEI Policies and Urges Firms to Help Reduce Racial Wealth Gap

Corporate policies meant to advance diversity and inclusion in the workplace are legal and should be expanded to promote broad economic prosperity and reduce racial wealth inequities, according to a new report by the Congressional Black Caucus.

The report released Monday offers guidelines to corporations on the best practices to adopt to advance diversity, equity and inclusion policies in the workplace and calls on companies to recommit to advance racial justice in the workplace. The document also includes a roadmap for advancing wealth creation in Black communities and closing the racial wealth gap.

“In the wake of the death of George Floyd, corporations pledged $50 billion to racial equity and strengthening DEI policies,” said Rep. Steven Horsford, D-Nev., chair of the Congressional Black Caucus, in an interview. “DEI is now under attack, but the response from corporate America has been overwhelming.”

The findings follow a December open letter the caucus issued that called on corporations to “reaffirm their commitments to DEI” and work with the CBC to fulfill pledges on racial and economic inequality.

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Horsford condemned “far right actors who are attempting to bully corporate America” to back away from DEI policies. He added that it was “erroneous” for corporations to rescind DEI policies because of the Supreme Court’s June decision overturning affirmative action programs in college admissions, which did not directly address corporate DEI policies.

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Since the Supreme Court’s ruling, more than a dozen Republican attorneys general have sent letters to Fortune 500 corporations threatening legal action over DEI policies. Earlier this year, GOP lawmakers in multiple states pursued restrictions on diversity and inclusion efforts in the workplace, and conservative legal groups have directed lawsuits at organizations focused on advancing underrepresented groups. Some companies have backed away from DEI policies they once promoted in the wake Floyd’s death.

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The study outlines twelve fields where corporations can focus on expanding DEI and help close the racial wealth gap, including guidance for workplace culture, data disaggregation, talent opportunities, retention rates, pay equity and procurement policies.

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