Corporate America’s diversity, equity and inclusion (DEI) programs are facing aggressive scrutiny—and professional services firms are not immune.  

Recent headlines are telling. Many, like Walmart, Google and some BigLaw firms, have retreated from the DEI efforts that were so widely publicized in the wake of George Floyd’s murder. Others, like Costco and Coca-Cola, aren’t shying away.  

But there are risks no matter how you approach the new landscape. Leaving DEI efforts intact may open some organizations to lawsuits and government enforcement actions. Doing away with them altogether, however, risks drawing negative attention to the organization. Either choice will likely incite backlash from employees, customers, and other stakeholders. Target, for instance, is currently being sued by shareholders who claim it concealed the risks of its DEI approach and facing boycott calls from consumers who support DEI.    

Whichever route your organization takes with its DEI decisions, communications will play a pivotal role in maintaining the trust of talent, as well as current and prospective clients. Amid ongoing uncertainty, a smart, multi-faceted communications strategy can lend stability to your firm, mitigate reputational risks, and lay the groundwork for what’s next.  

The Shifting DEI Landscape: Key Learnings for Communicators  

When it comes to DEI, it’s a murky time for employers of all shapes and sizes. The instability presents not only legal and workplace challenges, but a communications problem. How can you communicate authentically about a topic that remains in flux?  

Saying nothing—the path law firm K&L Gates chose before removing DEI language from its website—might exacerbate the problem. But saying something, however clearly, may backfire, too. A January statement about McDonald’s “Commitment to Inclusion,” for example, led to reports claiming that the fast-food giant had killed DEI—even though the statement itself was much more nuanced.  

Before laying out a plan, consider these three key learnings and how they may influence your communications.  

Put today’s climate in perspective. It can be tough to see outside of the whirlwind that is the current news cycle. But remember: the idea of creating an inclusive workplace and prioritizing diversity of perspectives was around long before 2020—and will likely be around in some form or another for years to come. Companies that are quick to walk back their DEI commitments perhaps never really believed in them in the first place. 

Those that do stand fast need to focus internally first. Regardless of how your firm wants to move forward, a big-picture perspective can help professional services organizations imbue these communications with a note of thoughtfulness and historical precedent. It’s genuine, for instance, to want to take a beat to reevaluate DEI programs as regulatory and other pressures shift—sometimes at blistering speed. You need to be honest about what a reevaluation entails and why you’re doing it.   

Disruption=opportunity. This reevaluation can be positive as every organization would probably do well to reexamine what’s working and what’s not when it comes to their DEI efforts. Honestly evaluating these programs is a tactic that most stakeholders can get on board with. It can also drive transparency in communications around DEI initiatives to audiences of all types, demonstrating that your organization is “doing the work” to make thoughtful decisions moving forward.  

Prioritize your people. As the backlash against McDonald’s shows, even the best intentioned communications can ignite hostility (the company’s Executive Vice President and Chief Legal Officer, Desiree Ralls-Morrison, suggested—probably correctly—that most critics hadn’t even read the full statement).  

High-profile organizations should expect as much in today’s climate. Yet while the public conversation is important, internal communications are where firm leadership has more control and should focus their attention. Despite the scrutiny facing DEI programs today, recent research by labor and employment law firm Littler reveals that these programs remain an important tool for attracting and retaining talent. 

Whichever direction they intend to go with on DEI, leaders should provide communications that keep employees up to date, acknowledge their concerns, reiterate that creating an inclusive workplace environment is still paramount, and offer a clear roadmap and timelines for what’s to come.  

Don’t forget: assume that anything you say internally can be leaked. While it’s understandable that some DEI communications will not be proactively external in nature, that doesn’t mean what you say internally should be in misalignment with your general public-facing posture. In fact, the internal to external progression of a stance or statement may be a smart, “people-first” strategy. 

Three Foundational Questions to Jumpstart Your DEI Comms  

Given the rapid-fire policy shifts, organizations are right in taking steps to avoid legal risks. Yet communications—internally and externally—must go hand-in-hand with any DEI pivots to mitigate reputational harm and any impacts to employee morale or recruitment efforts.  

To get started, consider the following three questions:  

What is the business case for your DEI programs?  

This will be critical not only from a legal perspective but a reputational one—especially when it comes to public-facing statements. In effect, it’s a return to pre-2020 DEI efforts.  

“Pre-George Floyd, most of this work was internal. There wasn’t a big external piece to it,” one Am Law 100 Chief Diversity Officer said in January. “George Floyd made it public, and very quickly all of the people who do this work were thrust out into the public space without a lot of warning or training, and now we’re all public figures on some ways. That’s a very new part of the job.” 

Be sure you can tangibly tie these efforts to business goals and that they align with your stated mission and values. Costco, which includes DEI in its “Code of Ethics,” has been successful in this regard. Its investors overwhelmingly defeated a shareholder proposal that would do away with the company’s DEI programs, which leadership recently said helps “bring originality and creativity to our merchandise offerings” and “enhance[s] our capacity to attract and retain employees who will help our business succeed.”  

Does your current and prospective talent understand the organization’s commitment? (Are you sure?)  

Pivots are only successful when stakeholders know what they’re pivoting from and to. This is where transparent communication about the findings (and why they were done in the first place) can play a role. Make sure your people understand what your commitment to DEI (or whatever you choose to call it) is moving forward, if at all.  

That can be easier said than done. For instance, many leaders may not fully have their fingers on the pulse. Finding ways to appropriately solicit feedback from employees and clients—and assess benchmarking data on other firms’ actions—is therefore critical.  

Do you have meaningful action items lined up?  

One lesson from the post-2020 era of DEI is that words without actions are sometimes just as consequential as the actions themselves. Stakeholders—especially internal audiences and consumers—are tired of hearing empty rhetoric, no matter where they stand. They want a clear sense of what actions will be taken moving forward and why. A recent study from Columbia Business School reveals “…if companies want to be seen as authentic allies, they must demonstrate a consistent commitment – with words that are supported by action.” 

A reevaluation of your DEI programs may buy you time, but eventually—whether you want to or not—you’ll have to communicate something. When you do, don’t show up with broad or overly ambitious statements that use a lot of grandiose language to say very little of substance. Be clear, brief, and targeted about what actions you’ve taken and will continue to take—and why.  

“A heartbreaking conundrum”  

That’s how Jocelyn Samuels, one of the Democrats removed from the Equal Employment Opportunity Commission, articulated the current challenge facing employers on the topic of DEI.  

But while obstacles abound, so do opportunities. Now is the time for professional services firms to reevaluate what’s working and what’s not—as well as who they are and what they stand for.  

None of this can be accomplished effectively without strategic, transparent, authentic, empathetic, and action-oriented communications from firm leaders. 

We’re here to help.