Tuesday, August 8, 2023

Is your corporate DEI program legal?

 From The WSJ:

  • Comcast settled a case accusing it of illegally favoring minority-owned small-business customers with grants and marketing advice. 
    • Comcast opened the program to all small businesses. 
  • Amazon has been sued in Texas over a program offering an extra $10,000 to Black- or Latino-owned delivery-service contractors. 
  • Starbucks directors and executives are being sued by a shareholder arguing they violated their duty to investors by supporting diversity policies. ...
“Anything a company’s doing that is treating someone differently because of their race, even if it’s a small part of the decision-making process, is going to be scrutinized,” said Dan Lennington, a former Wisconsin deputy solicitor general and deputy counsel for Wisconsin Institute for Law and Liberty, the legal group behind the Comcast lawsuit. ...
Companies have long relied on rationales similar to those buttressing affirmative action at universities—that there are benefits to diversity. By dismissing that rationale, the high court weakened the justification for other programs that promote it. 

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