CEO action framework

The problem: You are faced with competing regulations, demands, and a multitude of opinions and priorities and need guidance on what – if any – actions you should take.

The US Presidential Executive Orders and US Supreme Court decisions loom against a conflicting backdrop of EU, UK, Canadian, and other global policy shifts, causing you to assess the ongoing needs of employees, shareholders, clients, consumers, and communities across the socio-political, geographic, and cultural spectrum. Together we will plan a way forward for workforce inclusion to propel our organizations forward.

While the current legal, political, social, and economic climate centered in this guide is heavily US-focused, global organizations also must be prepared with the data and guidance to also address your broader global context and the expansive set of stakeholders to whom you are responsible and on whom you rely.

The approach

Consider these 3 possible paths.

Fight: Change nothing and hold your ground.

Maintain: DEI efforts as-is, including emphasis on lifting women and other historically marginalized groups to empower and advance historically marginalized groups.

Risks:

Targeting by anti-DEI advocates.
Social backlash from internal and external stakeholders on the right.
Potential loss of subsets of customers and clients, particularly in “red state” areas of the US.
Legal risks which should be assessed with appropriate experts

Flight: Pull the plug and roll back programs.

Shut down initiatives targeted at increasing gender and racial equity, diversity in representation, and cultures of inclusion.

Defund DEI programs and partners.

Eliminate internal DEI roles.

Risks:

Social backlash from internal and external stakeholders on the left.
Talent drain and turnover, particularly among women, people of color, and LGBTQ+ employees.
Loss of market share, particularly in “blue state” areas of the US and among women, people of color and LGBTQ+ consumers and clients.
Misalignment with non-US markets.
Higher risk of bias in AI and AI misuse and abuse.
Increased employee incidents (i.e., code of conduct violations, etc.)
Legal risks which should be assessed with appropriate experts.

Finesse: Sustain commitment and shift strategy and messaging.

Shift from lifting historically marginalized groups to creating a level playing field for all talent by removing barriers, according to the Meltzer Center for Diversity, Inclusion, and Belonging.

Focus on talent optimization and inclusive cultures.

Lean on the Values, Open, Close (VOC) framework (see below).

Risks:

If done right, risk is minimized.

For private sector companies, Catalyst suggests a Finesse approach.

By maintaining your commitment to organizational values and continuing to open avenues of opportunity and close gaps through removing biases and barriers from the system, you can maintain a consistent and credible approach that will weatherproof your organization against the inevitable storms ahead, while appropriately managing risk. And, by sustaining commitment to building diverse workforces and inclusive workplaces, you are positioning your organization for long-term business success.

Next steps:

Treat this like any other strategic business decision, product launch, or strategy pivot:

Weigh the risks. Confer with your GC, DEI and talent leaders, communications leaders, and trusted partners like Catalyst. You will never 100% satisfy all the stakeholders—internal and external alike—who are pulling you in all directions. So, listen to all perspectives and then make the decisions that are right for your business; take on the “right” risks for your organization; and lead from the top.
Choose the path that is best for your organization and inform all stakeholders. Be prepared to articulate and execute the decision with clarity, consistency, and conviction. Hold your leaders accountable for the same – a unified tone from the top is essential. Use the Values, Open, Close (VOC) framework below as a guide.
Communicate. Follow the VOC framework below and consult our Executive talking points for inclusive workplaces resource.

Making it happen:

To mitigate risk and maximize impact, your approach—and the messaging around it—should follow the Values, Open, Close (VOC) framework:

Values

Maintain and leverage your organizational values.

Lean on your organizational values starting with winning in the marketplace or your organization’s business-imperative equivalent. Leverage business case data from our Executive Talking Points for Inclusive Workplaces resource to help connect the dots.
Connect to behavioral values like respect, inclusion, and collaboration that ensure all employees are held to appropriate conduct standards and contribute to a positive workplace culture.

Open

Ensure no one is left out or left behind by your organization’s efforts to win the war for talent, win in the marketplace, and be a great place to work for all employees.

Build or modify programs and initiatives to be open to all participants.
The goal should be to ensure fair and open access to opportunities for all talent.

Close

Focus on leveling the playing field by closing holes in the system and closing opportunity gaps that, if allowed to persist, would be evidence of a malfunctioning meritocracy.

Emphasize the closing of gaps by removing artificial barriers that stand in the way of your ability to maximize all talent and maximize your business potential.
- This is achieved through efforts such as eliminating bias from systems and processes across the employee lifecycle.
Lean into an emphasis on opportunities to close innovation gaps, productivity gaps, and revenue gaps by enabling all talent to advance and thrive through your organization.

Appendix:

Consider these additional resources to guide your next steps.