Understanding and Managing Legal Risk in Corporate DEI
Rapid legal developments in the US related to diversity, equity & inclusion (DEI) practices, programs, and policies require continuous monitoring to ensure companies have accurate, up-to-date information regarding compliance and evolving regulatory standards. As the legal landscape develops in this area, companies are identifying and evaluating the specifics of their existing programs to determine compliance […]
Matteo Tonello is the Head of Benchmarking and Analytics at The Conference Board, Inc. This post is based on a Conference Board memorandum by Camille A. Olson, Partner, Seyfarth Shaw LLP, and Andrew Jones, Senior Researcher, ESG Center at The Conference Board, Inc.
Rapid legal developments in the US related to diversity, equity & inclusion (DEI) practices, programs, and policies require continuous monitoring to ensure companies have accurate, up-to-date information regarding compliance and evolving regulatory standards. As the legal landscape develops in this area, companies are identifying and evaluating the specifics of their existing programs to determine compliance with state and federal law, as well as overall program effectiveness. While “illegal DEI” remains undefined by the new administration, recent developments have provided some direction useful to the private sector.
This report compliments our February 2025 essay Navigating Legal Risk In Corporate DEI.
Key Insights
- Companies should harmonize regulatory and legal compliance with their broader inclusive workplace culture objectives. The ability to swiftly adapt to legal changes, proactively manage risk, and engage in transparent communication will be critical to sustaining lawful workplace programs while reaffirming a commitment to equal opportunity, merit, and access.
- Conduct scenario planning to ensure your leadership team is aware of developments and your communications strategy considers alternative outcomes. Engage with legal counsel and other resources to gain a broader perspective on applicable legal principles and evolving interpretations. Regular attorney–client privileged audits can strengthen organizational resilience against legal scrutiny.
- Ensure that employees and other key stakeholders understand the organization’s commitment to creating and maintaining a culture of fairness and inclusion. Provide employees with timely updates on any changes to existing workplace policies.
