Opinion: Company DEI efforts worth the risk

On the heels of the U.S. Supreme Court’s decision limiting affirmative action in college admissions, there has been an increase in workers who do not identify as a historically underrepresented filing lawsuits challenging their employers’ diversity, equity, and inclusion (DEI) programs.

As a result, some businesses may wonder: Are DEI efforts worth the legal risk? For most businesses, the answer remains “yes.”

These “reverse discrimination” lawsuits often suffer from similar flaws. Some are premised upon untested and potentially unsound legal grounds. Others are factually rooted in allegations of employer misconduct and supervisory concerns, not DEI programs.

One federal court has already shown strong disapproval of opponents of DEI who use the courts to advance their agendas. In "National Center for Public Policy Research v. Howard Schultz (Starbucks)," a conservative think tank challenged Starbucks’ DEI hiring goals as alleged breaches of fiduciary duties to Starbucks shareholders.

Notably, the plaintiffs represented only 56 of Starbucks’ approximately 1.15 billion shares. In a strongly worded order, the federal district judge condemned the plaintiffs for “obvious vindictiveness” and pursuit of “personal interests rather than those of Starbucks,” and dismissed the case.

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