Two of the most influential Black business leaders in the US are calling on companies to rethink scaling back their diversity, equity, and inclusion (DEI) efforts, according to CNN.
Ken Frazier, who served as CEO of Merck from 2011 to 2021, was the first Black CEO of a major pharmaceutical company. Ken Chenault, CEO of American Express from 2001 to 2018, was only the third Black CEO of a Fortune 500 company.
The leaders warned that reducing DEI efforts could limit opportunities for future generations of leaders facing racial and socio-economic challenges. Their concerns come when DEI initiatives face increasing political and legal pressures.
A Path to Developing Hidden Talent
Frazier and Chenault stress that DEI is not just about fairness but also about identifying untapped potential.
They caution that such decisions could prevent the rise of talented individuals who are often overlooked because of systemic biases tied to race, neighborhood, and education.
“At its best, DEI is about developing talent and finding hidden talent in a world where not everyone has an equal chance to exhibit their abilities,” Frazier explained in a recent interview.
“Businesses will miss the best talent unless they go out of their way to develop strategies” for cultivating leaders who have faced discrimination – especially those based on America’s “tortured history around race.”
Both leaders point to their own careers as examples of why DEI is necessary.
Frazier, for instance, attributes his rise at Merck to targeted mentorship and progressive promotion strategies that broke away from traditional, and often biased, meritocratic standards.
DEI Under Fire, But Essential for Business
Despite pushback, research shows that DEI programs benefit businesses.
According to the Boston Consulting Group, companies with successful DEI programs have higher employee motivation and retention rates.
Frazier and Chenault emphasize that businesses committed to DEI are better positioned to attract diverse talent, which in turn can boost innovation and profitability.
However, not all companies are maintaining these initiatives. Many have retreated under political pressure, particularly after the Supreme Court’s 2023 ruling that ended affirmative action in college admissions.
Frazier notes that while some firms are abandoning DEI, those with integrated diversity practices will continue to benefit.
“For companies that have truly embedded DEI into their business, it’s part of the fabric,” he said.
Feature Image Credit: Jemal Countess/Getty Images for TIME
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