The Internet has been buzzing the past couple days about the clapback from Mark Cuban against Elon Musk, defending Diversity, Equity and Inclusion (DEI) against one of its biggest detractors. Elon Musk took to Twitter/X on Wednesday to declare DEI to be just “another word for racism”, doubling down an hour later by calling it an example of “the definition of racism“.

Elon Musk’s screed came on the heels of the bombshell article from billionaire Bill Ackman in The Free Press, where the Harvard alumnus minces no words in his condemnation of diversity:

“DEI is inherently a racist and illegal movement in its implementation even if it purports to work on behalf of the so-called oppressed.”

Bill Ackman – Free Press

Ackman continues by saying “Having a darker skin color, a less common sexual identity, and/or being a woman doesn’t make one necessarily oppressed or even disadvantaged” and decrying DEI as “an important contributor to our growing divisiveness”. I’d imagine he envisions Beyoncé when making such a statement.

Mavericks’ owner Mark Cuban’s response to Elon Musk is priceless.

Good businesses look where others don’t, to find the employees that will put your business in the best possible position to succeed. You may not agree, but I take it as a given that there are people of various races, ethnicities, orientation, etc that are regularly excluded from hiring consideration. By extending our hiring search to include them, we can find people that are more qualified. The loss of DEI-Phobic companies is my gain.

Mark Cuban on Twitter/X

Cuban notes that “equity” is no more than poising one’s employees for success, and inclusion meaning “making all employees…able to do their jobs” – principles that should, at least in principle, appeal to every C-suite leader.

The anti-diversity mindset is gaining traction in the legal arena. A new piece in Harvard Business Review from Kenji Yoshino and David Glasgow advises companies how to benefit from DEI and from workplace diversity while steering clear of legal issues. Some of their tips for businesses include:

While these are certainly worthwhile initiatives that will surely show benefit and generate valuable productivity gains and workforce cohesion, it is lamentable that diversity isn’t being praised in its own right. Companies with DEI policies outperform their counterparts. And Elon Musk’s Tesla itself highlighted its own DEI initiatives in its 2022 Impact Report.

The “anti-DEI movement” was once the domain of less savory, fringe elements in American society. As Fortune notes, “Edward Blum, the activist funding legal challenges to affirmative action, grants for Black women entrepreneurs, and fellowship programs for law firm associates, has been pursuing this mission for over 30 years.” But as time has gone on and led through the tumultuous 2020s, the movement has become more mainstream, seeing backers emerge from all corners of the woodwork. DEI was even blamed for train derailment.

“Meritocracy” is a deeply rooted myth in American society that needs to be examined more critically. Not only is merit trumped by any number of inborn demographic characteristics, it is routinely trumped by class, as every “nepo baby” accusation attests.

DEI will continue to be good for business as long as there are those of us who value those who look dissimilar to us, and make buying decisions similar to the way we see the world.

Removal of DEI would not invent some lofty, noble “meritocracy” out of thin air where merits were examined independently of the one who earned them. On the contrary, removal of DEI would be a de facto return to entrenched Eurocentric racism, acute xenophobia and homophobia, enacted in every workplace and classroom. It means there is no counterweight to the effects of similarity bias. It means there’s no recourse for an infinite sea of nepo babies. Detractors of DEI seem to rely on Schrödinger’s HR to justify their claims: assuming that the most qualified candidates will materialize out of thin air, while simultaneously claiming that going after these most qualified candidates deprives someone of a majority background.

Let’s make no mistake: diversity is part and parcel of American society and DEI policies are how companies and schools make that fact part and parcel of their daily working lives. Mark Cuban could not be more accurate, and Bill Ackman more mistaken.

DEI is only “divisive” when the majority is universalized – taking everyone’s concerns into consideration shows the value of DEI immediately. Everyone wants a chance, and those who realize most tangibly the effects of discrimination reward those who take stands against it. DEI will continue to be good for business as long as there are those of us who value those who look dissimilar to us, and make buying decisions similar to the way we see the world.

Defending DEI shouldn’t be a task – but it’s part of the agenda for 2024.

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