American companies are distancing themselves from controversial diversity, equity and inclusion (DEI) initiatives in the wake of the college antisemitism row, business consultants claim.

The spate of antisemitism at some of the country’s most elite college campuses has reportedly dragged the DEI term further into a toxic political debate that businesses now wish to distance themselves from.

‘Anything that smacks of a quota is out,’ Diana Scott from The Conference Board told Axios.

The focus is moving away from ‘those three words’ towards efforts around ‘wellbeing and inclusion,’ Scott explained.

DEI had already attracted some high-profile critics from the business world including Elon Musk and billionaire Bill Ackman.

Businessman Bill Ackman has been a vocal critic of DEI initiatives

Tech billionaire Elon Musk termed DEI as ‘another word for racism’

The policy, often leading to the select hiring of minorities or specific demographics in order to increase diversity, was strongly pushed by Harvard’s first black female president Claudine Gay.

Gay, alongside the president’s of UPenn and MIT were called before a congressional hearing in December to account for the rise of antisemitism on their college campuses.

During the hearing, Gay refused to categorize calls for Jew genocide as harassment or concede that Jewish students had a right to feel safe at Ivy League schools.

Gay resigned as president of Harvard on Tuesday but failed to apologize for testimony.

The academic had actively pushed a DEI agenda at the college, and had herself been criticized as underqualified for the role.

Republican presidential candidate Vivek Ramaswamy, a Harvard graduate, denounced Gay’s appointment as ‘a thinly veiled exercise in race and gender.’

DEI has also been criticized by businessman and Harvard donor Bill Ackman, who argued it has been ‘the root cause of antisemitism at Harvard.’

Ackman publicly pursued the removal of Gay following her disastrous congressional testimony.

Tech titan Elon Musk threw his support behind Ackman, writing ‘DEI is just another word for racism. Shame on anyone who uses it’ in response to a 4,000 word essay by Ackman on the subject.

‘DEI, because it discriminates on the basis of race, gender and many other factors, is not merely immoral, it is also illegal,’ Musk in a subsequent post on his X platform.

DEI, has been panned by conservative critics as pushing a left-wing ideology in educational institutions and businesses, exploded across the corporate sphere following the race marches of 2020.

Harvard president Claudine Gay alongside the president’s of UPenn and MIT were called before a congressional hearing in December to account for the rise of antisemitism on their college campuses

Ackman publicly pursued the removal of  Gay following her disastrous congressional testimony

Republican presidential candidate Vivek Ramaswamy have made repeated overtures about the drawbacks of DEI

Last year’s Supreme Court ruling overturning the use of affirmative action in universities has drawn attention to corporate diversity efforts.

Laws limiting the use of DEI policies in public schools have been introduced in Florida by Governor Ron DeSantis and in the universities of Texas by Governor Greg Abbott.

‘DEI is better viewed as standing for discrimination, exclusion and indoctrination,’ DeSantis said whilst signing his bill into law last May.

Adding: ‘And that has no place in our public institutions.’

Businesses are now trying to avoid any hiring programs that could draw legal scrutiny.

Firms are finding new ways to create diversity within their teams, such as Blackrock who are focusing on hiring for socioeconomic diversity, according to Fortune.

‘Companies are really starting to look at other ways to do the work without saying that they’re doing the work,’ said Cinnamon Clark, cofounder of Goodwork Sustainability, a DEI consulting firm.

Governor Ron DeSantis has declared Florida the state where ‘woke goes to die’

Clark predicts Businesses will be talking more about ’employee experience’ or ‘wellness,’ rather than focusing purely on diversity in 2024.

Kevin Delaney, co-founder of Charter, a research firm focusing on the future of work, believes the increasing intensity of national politics will also put the breaks on DEI for businesses.

‘It’s hard to imagine with the amped up rhetoric of an election year that people really want to stick out their neck more,’ he said.

DEI has become a key battleground in the ongoing Republican nomination race, and is likely to become a feature in the primaries.
Ramaswamy have made repeated overtures about the policy and fellow Republican presidential candidate DeSantis has declared Florida the state where ‘woke goes to die.’