Sidley Discusses the Evolving Corporate Diversity, Equity, and Inclusion Landscape

Against a backdrop of executive orders targeting diversity, equity, and inclusion (DEI) programs, anti-DEI shareholder proposals, and the post-SFFA v. Harvard legal landscape, companies face growing pressure to reassess their DEI initiatives. To navigate this environment, companies should assess their risk tolerance relative to peers and consider a comprehensive audit of existing DEI policies with counsel. They should also tie their programs to demonstrable business rationale, understand the perspectives of key stakeholders through surveys and listening sessions, maintain a consistent tone at the top, and establish a response team for potential public scrutiny, while monitoring evolving regulatory guidance.