{"id":8621,"date":"2025-05-09T17:53:47","date_gmt":"2025-05-09T15:53:47","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=8621"},"modified":"2025-05-09T17:53:47","modified_gmt":"2025-05-09T15:53:47","slug":"inclusion-policies-have-mostly-benefited-white-people","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2025\/05\/09\/inclusion-policies-have-mostly-benefited-white-people\/","title":{"rendered":"Inclusion Policies Have Mostly Benefited White People"},"content":{"rendered":"

Diversity, equity, and inclusion programs were among the first targets of President Trump\u2019s executive orders. Many major companies quickly followed suit. The irony is striking: statistics show that such initiatives have primarily benefited white women, while positions of power in corporations remain firmly in the hands of white men. DEI or not, racial barriers remain intact.<\/em><\/p>\n

 <\/p>\n

DEI\u2014diversity, equity, and inclusion\u2014programs began in U.S. workplaces with three main goals: first, to create fairer hiring processes by encouraging recruiters to consider all qualified candidates regardless of background; second, to establish support networks for minority employees to improve their retention; and third, to promote diverse representation in marketing to reach broader consumer audiences.<\/p>\n

Falling Out of Favor<\/strong><\/h3>\n

These programs have typically been well-received by workers, distinguishing themselves from affirmative action policies mandated by the U.S. government during the civil rights era to combat centuries of racial segregation. DEI initiatives are instead voluntary efforts by companies to address workplace disparities. They are usually presented under corporate social responsibility or as smart business strategies.<\/p>\n

Here are a few stats. A 2022 GoodHire survey found that 81% of respondents would consider leaving their job if their employer lacked a strong DEI commitment. Economist Maliha Singh from Eightfold found that a 10% increase in Black or Hispanic employees can reduce a company\u2019s turnover rate by 4.4%, while a 10% increase in female presence can reduce it by 1.4%. McKinsey & Company\u2019s 2018 and 2020 studies showed that companies with the most diverse boards are 43% more likely to achieve higher profits. Moreover, companies with higher gender diversity in management are 25% more likely to outperform their competitors.<\/p>\n

Today, however, support for these programs is waning, with clear divides along political, racial, and ethnic lines. The Pew Research Center surveyed over 6,000 people in 2023 and late 2024. More than half of Black respondents believe DEI is working as intended. Hispanic and Asian respondents agree, albeit at lower rates. Among white respondents, only 30% of women and 14% of men say these programs have been beneficial.<\/p>\n

The same divide exists politically: over 75% of Democrats say the focus on diversity has been helpful, compared to just 30% of Republicans.<\/p>\n

 <\/p>\n

Do DEI Programs Work?<\/strong><\/p>\n

\"\"
Note: The chart shows the percentage of U.S. adults who believe DEI programs help or harm specific workplace groups. Sample size: 6,204 adults surveyed in September 2024. Source: Pew Research Center.<\/figcaption><\/figure>\n

 <\/p>\n

White Men and Women in the Workforce<\/strong><\/h3>\n

White men may worry about supposed disadvantages caused by DEI programs, but they still occupy over 75% of senior executive roles and 60% of board seats in corporate America. In the largest U.S. companies, only 6% of CEOs are non-white. Young white men face real challenges\u2014rising loneliness, delayed independence, and declining academic performance\u2014but the evidence linking these issues to DEI programs is weak.<\/p>\n

One revealing statistic comes from the U.S. Department of Labor: of the 7 million jobs created through affirmative action policies, 6 million went to white women. The trend continues. McKinsey research shows white women hold about 30% of top senior roles, while Black and Latina women hold just 4% and 3%, respectively.<\/p>\n

Even federal programs aimed at supporting women-owned businesses have largely benefited white women, many of whom have leveraged partnerships with minority-owned firms. Meanwhile, Black women entrepreneurs still struggle to secure capital and contracts.<\/p>\n

Racial Barriers Persist<\/strong><\/h3>\n

An April 2024 New York Times<\/em> study revealed that, despite decades of DEI initiatives, racial bias in hiring persists. When researchers sent identical r\u00e9sum\u00e9s with different names, applicants with typically Black names received 9.5% to 15% fewer callbacks than those with white-sounding names.<\/p>\n

Even more telling: economists Derrick Hamilton and William Darity Jr. found that the median net worth of Black families with a college-educated head of household is just two-thirds that of white families where the head of household didn\u2019t finish high school. These gaps suggest that DEI may have improved symbolic representation but has yet to address fundamental economic disparities rooted in the historic exclusion of Black Americans from wealth-building opportunities.<\/p>\n

DEI has spawned a lucrative $8 billion-a-year industry. Ironically, it\u2019s dominated by white-led consulting firms like McKinsey, Korn Ferry, and PwC. The same goes for top DEI positions: one report found that 76% of diversity officers are white, while only 3.8% are Black.<\/p>\n

A Shift in Political Climate<\/strong><\/h3>\n

The politicization of DEI is now a familiar tool in U.S. campaigns. Republican candidates portray it as \u201creverse discrimination\u201d undermining meritocracy, while Democrats defend it as a corrective for historical injustice.<\/p>\n

The polarization intensified during the 2024 presidential campaign. Republican-led states passed laws restricting DEI in public institutions. After taking office, Trump issued executive orders 14151, 14168, and 14173 to eliminate federally funded DEI programs and block grants or funding for institutions continuing to support DEI initiatives (see also Paola Profeta\u2019s article in this issue).<\/p>\n

Companies like Amazon, Walmart, McDonald\u2019s, Disney, Pepsi, and Citigroup shut down their DEI departments. Consider the shift: in 2018, Deloitte reported that companies promoting inclusive cultures had 22% lower turnover. Yet in February 2025, Deloitte scaled back its own DEI efforts. Still, some firms\u2014including Apple, Costco, and JPMorgan Chase\u2014have held firm. As Uber CEO Dara Khosrowshahi told the Financial Times<\/em>, \u201cWe believe that building a diverse, global team that considers all sides of the business is beneficial. It\u2019s simply good business strategy.\u201d<\/p>\n

The political battle obscures a more complex reality. Economic challenges\u2014wage stagnation, job loss from automation, rising housing costs\u2014have especially hurt young people, particularly white men. For those unwilling to tackle these systemic problems, DEI and immigration policies become convenient scapegoats for public discontent.<\/p>\n

This dynamic reflects broader trends tied to economic anxiety and evolving labor markets\u2014trends not limited to the U.S., but also present in many other parts of the world.<\/p>\n

The Economic Value of Diversity<\/strong><\/h3>\n

Beyond the narratives spun by supporters and critics, there are solid economic reasons why businesses should support DEI. A McKinsey study found that companies with diverse leadership are 36% more profitable than their less diverse counterparts. In other words, when boards and managers embrace DEI, it\u2019s often because diversity improves innovation and market understanding.<\/p>\n

Many now-standard corporate policies\u2014such as flexible hours, parental leave, and mental health support\u2014emerged in the U.S. under the DEI umbrella. Although they benefit all employees, they remain more accessible to those in well-paid positions\u2014who are still predominantly white.<\/p>\n

Following the 2023 Supreme Court ruling banning the use of race in university admissions, U.S. institutions and companies have shifted focus from representation to the idea of \u201cbelonging.\u201d Some are now using data-driven approaches to identify specific barriers facing underrepresented groups. But unless power imbalances are addressed, this may simply rebrand DEI without reforming it.<\/p>\n

A Path Forward<\/strong><\/h3>\n

The U.S. DEI experience offers valuable lessons. Successful programs require clear metrics, accountability mechanisms, and strategies to manage backlash. Most importantly, they must address the hard question of who holds power\u2014and how it\u2019s distributed.<\/p>\n

Genuine progress takes more than inclusive marketing or periodic training sessions. It demands a critical look at who benefits from DEI initiatives and how they can be redesigned to create real opportunity for historically marginalized groups.<\/p>\n

Without that reflection, DEI risks becoming a corporate PR exercise, rather than a genuine commitment to a society where opportunities are truly open to all.<\/p>\n

 <\/p>\n

Jos\u00e9 M. Fern\u00e1ndez is professor and chair of the Department of Economics at the University of Louisville.<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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