Financial Leaders In 17 States Join Kimberly Yee To Call On Corporations To Toss DEI Policies
By Matthew Holloway |
Top financial officers from 17 states, 13 State Treasurers, one Commissioner of Revenue, and three state auditors, came together to issue a firm rebuke to members of Congress calling upon Fortune 1000 companies to “reaffirm their commitments to Diversity, Equity, and Inclusion (DEI).”
The letter, signed by Arizona Treasurer Kimberly Yee, stated, “We the undersigned are state financial officials responsible for state investment vehicles that hold ownership positions in your companies. We write concerning recent calls from Congressional members that your companies reaffirm their commitments to Diversity, Equity, and Inclusion (DEI). They commend DEI to you, claiming it is ‘good for business’ and ‘benefits employees, customers, and the bottom line.’ Significant evidence is mounting that precisely the opposite is true.”
Yee and her colleagues wrote in response to entreaties sent by a coalition of Democrat politicians, who wrote to the same firms in support of the radical-left DEI agenda. The Democrat coalition made unfounded claims that DEI programs create “a culture of equality” that “allows your companies to remain competitive,” as reported by the Daily Wire.
Jeremy Tedesco, Alliance Defending Freedom SVP of Corporate Engagement told the outlet:
“The divisive and discriminatory ideology at the root of DEI has caused some of our country’s most prominent companies, like Home Depot, Lowes, Ford, and Toyota, to pull back on their DEI programs. We should celebrate that and call on other companies to follow their lead. Sadly, some members of Congress have instead responded by urging companies to reaffirm their DEI commitments. Businesses should listen to their employees, customers, and shareholders, rather than politicians, and jettison DEI once and for all.”
The letter from the State Officers cites scholarly studies from Econ Journal Watch and Harvard Law School Forum on Corporate Governance that sharply disprove the Democrats’ claims that corporate DEI efforts improve bottom line earnings and debunk the McKinsey studies upon which the agenda is based. They state, “The authors of the Econ Journal Watch article reported that they were ‘unable to quasireplicate’ the McKinsey studies’ results and admonished that ‘they should not be relied on to support the view that US publicly traded firms can expect to deliver improved financial performance if they increase the racial/ethnic diversity of their executives.’”
The state officials highlighted key takeaways from a recent New York Times article for the industry leaders to consider when addressing the continuation of the controversial DEI measures: University student reactions and the birth of a “grievance culture,” and the delivery of a divisive culture as opposed to the goal of inclusivity. In a study that examined the University of Michigan’s DEI program as an exemplar of these policies, the author found in part:
“On campus, I met students with a wide range of backgrounds and perspectives. Not one expressed any particular enthusiasm for Michigan’s D.E.I. initiative. Where some found it shallow, others found it stifling. They rolled their eyes at the profusion of course offerings that revolve around identity and oppression, the D.E.I.-themed emails they frequently received but rarely read.”
The author noted, “Michigan’s D.E.I. efforts have created a powerful conceptual framework for student and faculty grievances — and formidable bureaucratic mechanisms to pursue them. Everyday campus complaints and academic disagreements, professors and students told me, were now cast as crises of inclusion and harm, each demanding some further administrative intervention or expansion.”
“Michigan’s own data suggests that in striving to become more diverse and equitable, the school has also become less inclusive: In a survey released in late 2022, students and faculty members reported a less positive campus climate than at the program’s start and less of a sense of belonging. Students were less likely to interact with people of a different race or religion or with different politics — the exact kind of engagement D.E.I. programs, in theory, are meant to foster.”
In the letter, the financial experts concluded that employees have widely expressed the same views of DEI programs with a Freedom at Work Survey conducted by Ipsos and released by Viewpoint Diversity Score, finding that 40% of respondents said the policies divide rather than unite the workplace. They added that legal exposure is also possible as Chief Justice Roberts observed, “The way to stop discrimination on the basis of race is to stop discriminating on the basis of race.” Adding that the race-based theories and practices baked-into DEI programs “fly in the face of our colorblind Constitution and our Nation’s equality ideal.”
Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.