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Major U.S. corporations, including Activision Blizzard Inc and Kellogg Co, have been targeted by legal claims from a group founded by former Trump administration officials, alleging that their diversity efforts violate anti-discrimination laws. America First Legal, led by figures like Stephen Miller, Mark Meadows, and Matthew Whitaker, lodged complaints with the U.S. Equal Employment Opportunity Commission (EEOC), urging investigations into alleged gender and racial preferences in hiring at Activision and Kellogg.
This move comes amid a growing trend of challenges to corporate diversity initiatives, following a U.S. Supreme Court ruling in June that restricted race-conscious college admissions policies. The legal complaints filed by America First address various hiring, promotion, and contracting programs within companies such as Starbucks, McDonald’s, Morgan Stanley, Anheuser-Busch, and Hershey. The group also sued Target Corp and Progressive Insurance for breaching shareholder duties through their diversity programs and inclusive marketing campaigns.
Experts suggest that these legal actions reflect the tension companies face between implementing diversity initiatives and facing conservative backlash. Critics argue that such lawsuits could deter companies from pursuing diversity goals. Rick Rossein, a professor at the City University of New York School of Law, emphasizes the potential psychological effect dampening the advancement of workplace diversity.
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Kellogg and Hershey responded with statements affirming their commitment to anti-discrimination policies and inclusivity. Activision and Morgan Stanley declined to comment, while the other targeted companies did not provide statements.
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The effectiveness of America First’s legal claims relies on the actions of the EEOC, which enforces federal anti-discrimination laws. While typically triggered by worker complaints, the five EEOC commissioners, appointed by the president, can also initiate their own complaints, leading to investigations and potential lawsuits. However, “commissioner’s charges” are relatively uncommon.
A Trump-appointed commissioner, Andrea Lucas filed numerous charges last year, stating that poorly-planned diversity programs might breach the law. She views the Supreme Court’s affirmative action ruling as a warning to employers against incorporating race or gender preferences into workplace policies. Lucas refrained from commenting on whether she plans to file charges related to diversity, equity, and inclusion (DEI) policies.
Gene Hamilton, Vice President and General Counsel of America First and a former Trump administration lawyer, contends that companies focusing on employee demographics violate the law. He argues that these corporations prioritize employees’ race and gender over the quality of their products.
The ongoing legal battles highlight the complex landscape of corporate diversity efforts, navigating legal boundaries while striving for inclusivity. The outcomes of these cases could have far-reaching implications for the balance between fostering workplace diversity and adhering to legal interpretations. As the legal proceedings progress, it remains to be seen how companies will adapt their diversity strategies in response to these challenges and potential legal outcomes.
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