Are DEI initiatives in danger in NC? What these Charlotte-area companies are doing

Long before diversity, equity and inclusion programs became a corporate staple targeted by conservative groups as divisive, Atrium Health was doing the work.

Fernando Little, Atrium’s chief diversity, equity and inclusion officer, said political backlash and growing uncertainty around DEI haven’t discouraged one of North Carolina’s largest employers from its mission.

“We are freeing ourselves from trying to figure out the politics of this and grounding ourselves in the mission and the work,” said Little about the fifth-largest nonprofit health system (after its merger with Advocate Health) in America that has carried some form of diversity program since 2009. “We’ve recognized we have a responsibility to our patients, our teammates, and our community. It is rooted in our mission around health, hope and healing.”

Diversity programs exploded across the country after George Floyd’s murder by police amid protests and a racial justice revolution that swept the country in 2020. Companies made pledges about racial equity, crafted entire units to diversify their workforce and invested financially in the interests of minority communities.

The state’s largest utility company, Duke Energy, for instance, admitted the racial reckoning America experienced motivated the company to examine its diversity efforts. The company said it committed more than $8 million to social justice and racial equity organizations, along with increasing its in-house diversity councils for employees to maintain what the company described as “an inclusive culture,” its website states.

“At Duke Energy, we firmly believe that a diverse workforce and inclusive culture make us a stronger company,” said Sharene Pierce, Duke Energy vice-president and chief diversity and inclusion officer. “A diverse workforce is not only a competitive advantage that positions our company for success, but it also connects us with our communities and helps us meet the ever-changing needs of our customers.”

Little indicated Atrium Health has used DEI to address health disparities, such as deploying mobile units to underserved communities and investing millions in health clinics. Internally, the practice is seen as a collaborative effort involving nearly all of Atrium Health’s 70,000 employees.

“It’s not just one initiative or program; it’s a mindset,” he said. “It’s all part of our inclusive culture that we try to uplift every day through a culture of belonging and respect and inclusion.”

However, in the years since diversity initiatives began, there has been a firestorm of debate and pushback over its place in corporate America and beyond.

DEI programs under fire in North Carolina, across U.S.

While diversity programs at companies such as Atrium Health are under no threat, it is difficult to ignore public and private entities weighing the value of those initiatives after legal challenges that have made them cumbersome to keep.

Some state legislatures have also approved bans on DEI in higher education and public offices in Florida, Texas, and Utah. Others have introduced at least 65 anti-DEI bills since 2023, according to the Chronicle of Higher Education.

In North Carolina, U.S. Rep. Greg Murphy, a Republican from Raleigh, introduced the “Educate Act” earlier this month, which would cut off federal funding to state medical schools that promote diversity, equity and inclusion.

That was after the Republican-dominated Senate voted to override a veto from Democratic Gov. Roy Cooper in June about how state employees can discuss race in the workplace, The News & Observer reported. N.C. Senate Bill 364 would prevent state government agencies and institutions from promoting certain concepts in the workplace, or including them in any training.

Lt. Gov. Mark Robinson, the Republican nominee for governor, has criticized DEI, particularly in higher education, saying the program encourages “radical ideology” that does not promote equal treatment.

“Despite its name, DEI has come to represent unequal treatment based on race and exclusion – especially toward conservatives,” Robinson wrote in a column published by Asheville-based North State Journal.

A North Carolina federal appeals court ruled in March that a white Novant Health executive was discriminated against after it was determined he was wrongly fired to make room for Black and female employees.

Novant Health, which was ordered to pay David Duvall $4 million and damages in back pay, told the Observer it “firmly stands by our commitment to diversity and inclusion and to assuring equal employment opportunities to all of our current and prospective team members,” despite the ruling.

‘DEI is the least society can do’

Jarvis Hall, a political science professor at North Carolina Central University, said the consternation around diversity programs has been fueled by political rhetoric.

“For some, the drastic changes that have taken place socially and culturally in America has been too much for some people to take,” said Hall. “We are talking about racial issues and gender issues and gender identification.

“For some, they feel like American society and culture is changing too much and too quickly, and they’re being left out.”

Hall said the focus on limiting DEI in the workplace mirrors actions taken by legislative bodies to ban specific reading or subject matters throughout public school systems that deal with race and gender.

“I view DEI as the least society can do to correct these wrongs,” he said. “Change can be very tough. Transformation can be tough. What DEI is attempting to do is transform America into what it claims to be.”

Katie Mooney, the managing director at Seramount, a professional services and workplace research firm that advises 450 corporations on diversity strategies, told the Observer in an email that she predicts “that DEI backlash will intensify” as the November general election approaches.

“Many of our partners have the same issues keeping them up at night, including the political backlash to DEI, corporate cutbacks, and how that will impact DEI at their organizations, as well as the attracting and retaining of underrepresented talent,” she said.

“Our research has shown that 80 percent of organizations are taking a wait-and-see approach when it comes to DEI, while only 10 percent are cutting back. The good news is that the other 10 percent are doubling down on their efforts.”

And some of the largest Charlotte-based companies contacted by The Charlotte Observer say they continue investing in diversity programs amid the noise. The Observer attempted to speak with Bank of America, Honeywell and Lowe’s officials but did not receive a response about where they stand on DEI initiatives.

Charlotte companies reaffirm DEI work

Wells Fargo outlines in its most recent diversity, equity and inclusion report that 46% of its 238,000-person workforce is racially and ethnically diverse. The company said it is “committed to advancing diversity” even in the current political climate.

Wells Fargo is headquartered in San Francisco, but has its largest employment base in Charlotte.

“As a company, our approach has not changed. We are committed to advancing diversity, equity, and inclusion both inside our company and in the communities where we live and work,” Wells Fargo said in a statement. “We also believe having diverse representation and perspectives, equity, and inclusion across the bank are critical to our ability to serve the evolving needs of our colleagues, customers, and communities.”

The North Carolina Chamber is the state’s largest, broad-based business advocacy organization. Its website features sections promoting women in leadership and even upcoming DEI conferences that aim to foster workplace retention and “create psychological safety.”

Kate Payne, a spokeswoman for the Raleigh-based entity, said it will continue to encourage businesses to continue diversity efforts.

“As we work to maintain our competitive position as a top state for business, North Carolina employers are investing in people, and they will continue to do that in the way that best supports their business, regardless of political climate,” she said.