Why are Meta, Amazon and more multinational companies changing their DEI practices now?
Tech giants Meta and Amazon are sparking debate about diversity practices in the workplace after announcing that they are ending their DEI (diversity, equity and inclusion) programmes. In Amazon’s internal memo, Candi Castleberry, vice president of inclusive experiences and technology, shared that the company has been “reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI”, and has been “winding down outdated programs and materials” to focus on proven programmes that foster inclusion.
Why did Meta end its DEI programmes?
More recently, Meta, the parent company of social media juggernauts Facebook and Instagram, announced sweeping changes in its approach to DEI. While it promises to apply fair practices “that mitigate bias for all”, Janelle Gale, vice president of people, shared in an internal memo, that Meta will cease its Diverse Slate Approach in hiring, as well as end its supplier diversity effort, which focuses “sourcing from diverse-owned businesses”. Meta is also dissolving its DEI team and moving its chief diversity officer to another role.
The January note specifically mentions that the “legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing”, referencing the US Supreme Court’s stance on DEI as background for the changes.
Apart from Amazon and Meta, a growing number of companies, including McDonald’s, Walmart and Ford, have opted to abandon DEI policies, signalling a shift in business perspectives.
Why are DEI programmes important?
DEI programmes gained significant traction following high-profile incidents such as the death of George Floyd and the emergence of the #MeToo movement, both of which sparked protests against deep-rooted inequities in society. These events, along with the growing support for LGBTQ+ communities, underscored the need to confront discrimination and enhance representation across all sectors.
In the workplace, DEI programmes ensure that people of varied genders, races, ages, ethnicities and socioeconomic status are welcomed, treated fairly and given the same opportunities. These programmes can include implementing hiring processes that attract diverse talent, conducting cultural competency training that widens the understanding of different perspectives or instituting financial programmes that address economic disparities.
Before the recent turnaround, many companies had already embraced DEI as a strategic priority, recognising its benefits for both people and the business. Apart from achieving high employee satisfaction, engagement and retention, companies also cultivated innovation as diverse teams offer different perspectives that can aid in decision-making.
As Jenifer Thien, a non-executive independent director on the boards of several public-listed companies in Malaysia, the UK and Singapore, said to Tatler: “The challenges businesses face today are unprecedented, and you can’t expect to solve these problems with a one-dimensional team. From my experience, when you have a group that is diverse in terms of whether it’s functional experience, expertise, ethnicity, age, and so on, that’s when you get the best outcomes. It brings to life the idea of being greater than the sum of its parts.”