In Defense of DE&I
From Fearless Fund to the First Amendment
As the backlash against the racial reckoning of 2020 continues to unfold, attacks on Diversity, Equity, and Inclusion (DE&I) initiatives across the nation are underway. At the heart of this storm stands Fearless Fund, the venture capital firm targeted for one of it’s initiatives focusing support for Black Women and their businesses.
In August, 2023, the American Alliance for Equal Rights, led by Edward Blum, sued the Fearless Fund alleging its grant program for Black-women-owned ventures violates the Civil Rights Act of 1866, legislation passed after the legal end of slavery meant to establish some protections for Black Americans.
The suit, still unfolding in Georgia, is a follow up to Blum’s win at the US Supreme Court in July 2023 where his organization was successful in convincing a conservative-majority court to strike down affirmative action in college admissions.
Changes to DEI language & programming are well underway in response to the many lawsuits filed since the end of Affirmative Action in July, 2023.
Fortune.com article by Alexandra Olson, Haleluya Hadero, Anne D’Innocenzio and the AP - 2024
The Fallout
The blatant discrimination exposed in these lawsuits, and the ripple effects it has had in academia, nonprofits, government contracts, and private businesses, are mirrored by hateful online rhetoric demanding the end of DEI efforts. These attacks represent a concerted attempt to undo the hard-won gains made towards inclusivity and a return to historically exclusionary social orders, ones deeply woven into the fabric of our nation's past.
And in some ways, the intimidation factor is working. Even before the Fearless Fund case has been adjudicated, scores of private businesses, public programs, and nonprofit entities have begun pivoting away from, or re-working Diversity goals and initiatives. Indeed, the new legal precedent has organizations like PwC, one of the Big Four accounting firms, fearful of being sued and simply doing away with vital programs intended to level professional playing fields for historically marginalized minority groups. Others, like Tides, a national NPO dedicated to empowering a wide range of marginalized communities, hopes to innovate within DEI structures, attempting to subvert backlash while still empowering those proximate to social justice issues.
Breaking It Down
Of course, these trends are nothing this nation and marginalized folks have not seen before. While histories of discrimination may repeat themselves, one thing is certain: the fight for equity will not yield. Today, a fresh tidal wave of voices rises in defense of diversity, equity, and inclusion. This chorus is fueled by the unwavering conviction that systems designed to privilege some and disadvantage others will not stand. DE&I is not just a trend; it’s the bedrock of thriving, inclusive economies. No matter the buzzwords or acronyms, the push for equity and access will not be stopped. The spirit of equality will not be silenced.
Defending the diversity component of DEI has an undeniable impact on the fight to protect equity gains. This blog is meant as a roadmap for those desiring to be part of the solution, those who refuse to let progress regress.
Among the champions of equity, non-profits and private organizations are rising to the occasion and standing shoulder to shoulder in defense of DEI. Whether through amicus briefs or innovating how we think about DEI, they are proving that the war on progress can’t stop the relentless march toward a more equitable future.
Diversity as Superpower
According to the Fearless Fund, women of color business founders received only 0.39% of the $288 billion that venture capital firms deployed in 2022 (see more here). This stark statistic underscores the crucial need for targeted initiatives like those offered by Fearless Fund. Clearly, Black women entrepreneurs are underfunded despite undeniable potential.
We say undeniable potential, because when it comes to financial performance, diversity reigns supreme. In 2020, Bloomberg reported that hedge funds led by underrepresented groups, including minorities and women, achieved a remarkable 6.6% return average, nearly double that of their counterparts averaging returns of only 3.9%. This trend extends to venture capital as well. In 2016 authors David Rock and Heidi Grant at the Harvard Business Review published an article with the following title: Why Diverse Teams Are Smarter (November 04, 2016). In that article, it’s stated that VC firms with greater gender diversity saw a significant 9.7% increase in profitable exits and a 1.5% boost in annual returns. These findings demonstrate that diversity in leadership drives success. You might say they even suggest diversity is a superpower.
Fearless Fund and the First Amendment
In late 2023, two leading non-profit organizations, the Council on Foundations and Independent Sector, filed an Amicus Brief in support of Fearless Fund. The brief asserts that the fund's activities are protected by First Amendment guarantees of free speech and association. It underlines the crucial role of non-profit organizations in addressing social inequities and fostering more equitable societies.
This legal battle offers a critical opportunity to reaffirm the fundamental right of both non-profits and individuals to pursue social justice objectives through targeted grantmaking and support. This is particularly important when statistics paint clear pictures of systemic inequities.
This court case isn't just about one fund; it's about the fundamental right to dismantle injustice and to build stronger, more equitable systems.
National Minority Supplier Diversity
In November, 2023, the The National Minority Supplier Diversity Council (NMSDC) launched a fundraising partnership with Fearless Fund. This included a full-fledged social media campaign marked by the hashtag #WeAreAllFearless. The effort goes to the very core of the NMSDC vision, to be the leading organization for driving socioeconomic equity and generational wealth in communities of color.
Through this campaign, regular people like you and I can share on social media, spread awareness, and raise funds for Fearless Fund’s nonprofit. According to Fearless Fund CEO Arian Simone, campaign proceeds go to cover Fearless Foundation operations, grant programs, and educational efforts designed to serve women and entrepreneurs of color.
The Civility Connection
At Civility Localized, Diversity, Equity, Inclusion, and Belonging are central to our work and ethos. They are, in fact, embedded in our Core Company Values. More than that, Civility Localized is an NMSDC certified business. We recognize that the social, political, and legal ramifications of lawsuits like this one will have direct impacts on our for-profit firm, the non-profits and government offices we contract with, as well as the the entrepreneurs, neighborhoods, and communities we serve.
That’s why our student intern Tiandra Evans shared her perspective on the end of affirmative action in the summer of 2023, in a blog post you can read here.
It’s also why our founder Christine Edwards shared her thoughts on the impact the SCOTUS decision has had on small businesses in blog posts, newsletters, and local publications like Charlotte’s PRIDE Magazine.
We continue to stand with Fearless Fund and encourage readers to check out their social media campaigns, the amicus brief in support of their non-profit, and more.
What You Can Do
Join the fight. Educate yourself, engage your community, and support organizations striving for equitable futures. Like, follow, and share posts with the hashtag #weareallfearless on social media. Read and share the Amicus Brief written by Council on Foundations and Independent Sector. If you are in a position of leadership within the nonprofit space, consider encouraging your own organization to sign on in support of this brief, or perhaps to author your own.
As community engagement specialists, Civility Localized maintains that creating inclusive, empowered communities requires both the explicit dismantling of systemic barriers, and the pro-active build-up of access.
That’s why we facilitate hard conversations with care and competency. These very conversations help us all grasp the significance of the moment, and foster calls to collective action in response. If your local government office or non-profit organization is ready to facilitate workshops, listening sessions, or community engagement with a focus on diversity, equity, and inclusion, consider a consultation with the Civility Localized team.
Thank you for reading, for sharing, and for chiming in. By engaging with DEI content, you empower real world action.
Keep advocating, keep sharing. We’ll keep you posted.
