The recent federal appeals’ court decision to strike down the board diversity rules that NASDAQ and the Securities and Exchange Commission (SEC) have been pursuing is a victory for organizations who stand against these reductive and divisive policies. This decision rejects what would have been a dangerous precedent with implications for mission-driven organizations and how they pursue excellence and serve their communities.
Charitable organizations should take note of this ruling, the latest in a series of diversity, equity and inclusion (DEI) retreats in the corporate world. As the failure of these arbitrary check-the-box policies is laid bare, it’s reassuring that the nonprofit sector is liberated from the societal pressure to embrace these optics-driven rules that don’t translate to organizational success.
Senior Vice President Elizabeth McGuigan said:
“Philanthropy Roundtable applauds Wednesday’s victory against diversity, equity and inclusion mandates in the NASDAQ board-diversity rules case. The court’s decision to block NASDAQ from requiring corporate boards to report their racial and gender makeup reaffirms that individuals should not be sorted and evaluated based on their personal characteristics. While the NASDAQ proposal did not seek immediate quotas for boards, it would have forced individuals to disclose personal information they may not want to share and reduces people to the boxes checked on a form based on their race, gender or other immutable traits.
The NASDAQ disclosure regime, if allowed to stand, would have been a de facto mandate disguised as reporting and disclosure rules that violate personal privacy. When states like Illinois are mandating nonprofit board disclosure, this decision is a strong signal to DEI-proponents that we cannot afford to ignore the rich characteristics that people bring to the table like unique talents, backgrounds, perspectives and life experiences.”
For more on Philanthropy Roundtable’s work pushing back against DEI mandates and quotas, visit TrueDiversity.org.
