While inclusion and belonging initiatives face continuing challenges in higher education, corporate America remains committed to these efforts, recognizing the critical role of DEI (diversity, equity, and inclusion) in driving business success.
“The State of Sustainability in 2024: DEI Will Survive,” a recent report by Teneo — a public relations and management consulting firm — shows that DEI remains a cornerstone of sustainability strategies for the majority of S&P 500 companies, reflecting the alignment between inclusive practices and economic outcomes. These findings highlight the importance of maintaining a strong pipeline of diverse talent, which higher education institutions are uniquely positioned to supply.
Teneo’s analysis of 250 corporate sustainability reports reveals that businesses continue to emphasize inclusion initiatives, albeit with some adjustments. While the use of the DEI acronym has decreased, from 99% of companies using the term in reports in 2023 to 94% in 2024, this change reflects a shift in how these efforts are framed.
“There has also been a noticeable addition of ‘culture’ or ‘belonging’ focused titling instead,” the report states, reflecting a strategic response to mitigate backlash.
Diversity in workforce demographics remains a priority, with 97% of companies including related data in their disclosures. Additionally, talent programs targeting people from underrepresented groups are a staple of corporate recruiting strategies, appearing in 67% of reports. Supplier diversity initiatives, disclosed by 78% of companies, also remain vital, underscoring the value of diverse partnerships in building resilience and innovation.
While there has been a slight decline in companies setting measurable DEI goals — from 47% in 2023 to 43% in 2024 — businesses continue to promote initiatives such as representation targets, supplier diversity, and hiring graduates from historically Black colleges and universities (HBCUs).
“Of the 250 companies analyzed, 24 omitted specific DEI goals from their disclosures, including 16 related to diverse representation, nine on supplier diversity and seven tied to diverse community investments,” the Teneo report reads. “Conversely, 13 companies introduced new DEI goals, including eight on representation, two on supplier diversity and six on broader initiatives such as HBCU recruiting efforts and pay equity.”
The connection between higher education and corporate efforts is both profound and essential. Colleges play a key role in preparing diverse graduates to meet the needs of today’s employers. However, legal and political restrictions, such as the U.S. Supreme Court’s decision to strike down race-conscious admissions along with state-level restrictions on DEI, threaten to disrupt this pipeline. This interdependence highlights the critical need for higher education to continue fostering inclusive environments.
Many businesses remain committed to goals tied to academic institutions, such as HBCU recruiting and investment in underrepresented communities, further underscoring the importance of diversity at every stage of the talent pipeline.
The economic benefits are well documented. A 2021 Brookings Institution report found that closing racial wage and employment gaps could have added $22.9 trillion to the nation’s GDP between 1990 and 2019. Each year that disparities exist, the U.S. forfeits approximately $1 trillion in potential revenue.
“The persistence of systemic disparities is costly, and eliminating them has the potential to produce large economic gains,” the Brookings report stated.
Corporations also see direct financial benefits. According to McKinsey & Company, companies with greater gender and racial diversity on executive teams outperform their less diverse counterparts by as much as 36% in terms of profitability. These findings reinforce the importance of inclusive hiring and leadership practices in achieving a competitive advantage.
Teneo’s report emphasizes that DEI communications must clearly demonstrate alignment with business priorities and highlight measurable outcomes to navigate ongoing scrutiny. This need for transparency presents an opportunity for higher education institutions to strengthen their partnerships with businesses by aligning programs with corporate hiring goals.
As higher education institutions continue to face mounting challenges, their role in enrolling and educating a diverse workforce remains pivotal. By continuing to foster inclusive environments, colleges and universities can meet the needs of businesses while contributing to a stronger, more equitable economy.
