Former Merck CEO Ken Frazier and former American Express CEO Ken Chenault sound the alarm that companies considering retreats from their Diversity, Equity, and Inclusion initiatives may be forging a self-defeating path.
They believe giving up on DEI might be limiting opportunities for those at a disadvantage and would hurt business in the long run. Both leaders have voiced concerns over the growing trend of companies stepping back from DEI under political pressure.
Frazier emphasized that DEI is essential to cultivating hidden and diverse talent in America. “Businesses will miss the best talent unless they go out of their way to develop strategies for leaders who have faced discrimination,” Frazier said.
He stressed that meritocracy often ignores structural biases, and DEI provides a way to offer fairer opportunities.
Chenault added that abandoning DEI would reinforce inequality in corporate America. He noted that many underrepresented individuals face significant barriers due to their background or education, and without corporate DEI initiatives, progress will be stalled.
Business Impacts of DEI
Research has documented that companies with strong DEI programs show higher profits, employee retention, and motivation. These are initiatives not only to guarantee equity within the workplace but also are very significant for business sustainability.
A study conducted by Boston Consulting Group shows that firms with DEI policies attract a diverse talent pool, hence increasing innovation and profitability.
Co-founders Frazier and Chenault’s organization, OneTen, creates job opportunities for people without a four-year degree. They make the claim that, if America is to fix some of these historic and contemporary inequalities, DEI is absolutely essential.
