Deloitte’s US settlement over alleged DEI-linked hiring and promotion raises a question: will global companies rethink how they approach diversity across their Indian workforce?
Deloitte has agreed to pay $21.5 million to settle a US Department of Justice (DOJ) investigation into its DEI (Diversity, Equity, Inclusion) practices. The DOJ alleged that Deloitte used race and sex in some hiring, promotion and staffing decisions while pursuing internal workforce targets. Deloitte has denied wrongdoing, and the settlement does not amount to an admission of liability.
The Deloitte case raises a question for multinational companies operating in India: if demographic targets are becoming a legal risk in the US, will companies rethink how they approach diversity hiring and promotions across their global workforce?
“It’s important to understand that DEIB (Diversity, Equity, Inclusion, and Belonging) is much wider than ‘target based hiring’. It’s core premise is to create a level playing field irrespective of the race, caste, sex, etc. The organisations have seen an impact. Marching Sheep’s research shows that in India organisations that are more diverse delivered almost 4.5% point higher profitability. The purpose of DEIB was always inclusion and belonging. So, I don’t see global employers abandoning inclusion. I see them continuing their journey towards building fair systems, inclusive leadership, equitable career progression, data-driven diagnostics, and cultures of belonging that deliver diversity organically,” said Sonica Aron, Founder & Managing Partner, Marching Sheep.