As election season intensifies, workplace tensions will continue to rise. With the 2024 election nearing, corporate America is facing new challenges such as balancing diversity, equity, and inclusion (DEI) initiatives with the rising political tensions.
We are now seeing the opposite of what we saw in 2020. Looking back, companies across the U.S. were making pledges to DEI in the wake of George Floyd’s murder. However, today, many of those same organizations are backtracking on DEI commitments in response to growing pressure exacerbated by the presidential election this coming November. With this trend in mind, business leaders must address these turbulent times through respectful discourse and maintain civility in the workplace.
The Pendulum of Public Sentiment and Corporate Response
In the aftermath of George Floyd’s death, corporations like Ford Motor Company were very vocal in their support for racial justice and DEI initiatives. Simone Foxman, in an article for Bloomberg shared by the Seatle Times, reminds us that Ford’s then-CEO, Jim Hackett, expressed a strong commitment to leading societal change. However, just four years later, the company has changed its tune. In a memo to employees, current CEO Jim Farley stated, “The external and legal environment related to political and social issues continues to evolve.” Furthermore, the directive included several bullet points highlighting Ford’s change in DEI initiatives including not publicly speaking on “polarizing issues of the day.”
The shift seen at Ford is not an isolated incident. Other major corporations, including Lowe’s, Harley-Davidson, and John Deere, have similarly retreated from their DEI goals. According to Foxman, “The catalyst appears to be fear that they will become the next Anheuser-Busch InBev, whose Bud Light brand lost its title as the bestselling U.S. beer after including a transgender influencer in a marketing campaign. Robby Starbuck, a conservative activist leading the charge on publicly “exposing,” as he calls it, companies that have a base of conservative consumers and DEI policies, has been taking to social media to rile up his over half-million followers in calling for boycotts.” As reported by Politico, this backlash has placed DEI at the center of the 2024 presidential campaign, with some Republican candidates criticizing Vice President Kamala Harris as a “DEI hire” and former President Donald Trump questioning her racial identity.
The conservative push against DEI has been further amplified by legal challenges, such as the Supreme Court’s decision to overturn affirmative action in college admissions. This ruling has led companies to reassess their diversity initiatives, with many scaling back their commitments to protect themselves from potential lawsuits and regulatory complaints.
Balancing Political Tensions and Workplace Civility
We are already seeing the effects of the political debate spilling over into the workplace. SHRM’s latest Civility Index reveals a significant rise in uncivil behavior, with U.S. workers encountering more acts of incivility in their daily lives than just a few months ago. The Index shows that the workplace-level civility score has dropped, while societal-level civility has declined even further, highlighting the looming impact of political tensions on places of business.
Experts warn that as the election season progresses, these tensions are likely to worsen, leading to decreased productivity, lower morale, and higher absenteeism. According to Edward J. Beltran, CEO of Fierce, “the current social and political climate, marked by heightened tension and divisive rhetoric, is geared toward eliciting an emotional response.” He goes on further to say, “political turmoil and societal divisions spill over into professional environments, affecting behavior and interactions. As a result, employees bring these heightened emotions and reduced patience into the workplace, leading to more frequent uncivil interactions.” Richard Birke, chief architect of JAMS Pathways, adds that social media’s role as a personalized echo chamber amplifies these tensions, making face-to-face interactions more challenging and increases the likelihood of workplace conflict.
C-suite leaders must proactively address these challenges by fostering a culture of respect and open-mindedness. This involves implementing clear policies that define acceptable behavior, setting guidelines for political discussions, and providing training on conflict resolution and communication skills. By doing so, companies can create a work environment where diverse opinions are respected, and political discourse does not derail productivity.
The Role of Political Neutrality and Corporate Strategy
Some companies have taken a more radical approach to managing political discourse by enforcing policies of political neutrality in the workplace. One notable example is Coinbase, whose CEO, Brian Armstrong, made headlines in 2020 for banning political discussions at work; he also offered severance packages to employees who were uncomfortable with the policy. Armstrong posted to the company blog, “Everyone is asking the question about how companies should engage in broader societal issues during these difficult times, while keeping their teams united and focused on the mission.” He added, “Coinbase has had its own challenges here, including employee walkouts. I decided to share publicly how I’m addressing this in case it helps others navigate a path through these challenging times. In short, I want Coinbase to be laser focused on achieving its mission, because I believe that this is the way that we can have the biggest impact on the world.”
However, this approach does have its risks. Completely shutting down political discussions may alienate younger generations, who often seek to work for companies that align with their social and political values. As a result, companies that choose this path may face disengagement and higher attrition rates among their younger employees.
For most organizations, finding a middle ground will be the most fruitful strategy. This can involve offering forums where employees can openly discuss their views without fear of retaliation, while also ensuring that these discussions are conducted in a respectful manner. Corporate executives also play a critical role in modeling the behavior they want to see in their organizations by demonstrating how to engage in civil discourse and showing respect for other viewpoints.
The Economic Impact of Political Tensions and Incivility
Beyond the social and cultural implications, the rise in political tensions and workplace incivility has significant economic consequences. SHRM’s Civility Index reports that U.S. organizations collectively lose over $1.2 billion in productivity per day due to uncivil behavior at work. Additionally, absenteeism caused by incivility costs businesses an additional $828 million per day. These figures underscore the importance of addressing incivility and political tensions proactively to mitigate their impact on the bottom line.
Moreover, a July poll by Monster revealed that 51% of workers would consider leaving their job if their company openly expressed political beliefs they disagreed with, further highlighting the potential for political tensions to drive turnover and disrupt workforce stability.
Final Thoughts
Organizations are being challenged with striking the right balance between upholding DEI initiatives and managing political discourse in the workplace. While we do not know what the future holds for politics in America, we do know that business leaders can prepare for it by providing a respectful culture, setting clear expectations, and leading by example.
Resources: Seattle Times, Anti-DEI outcry online spurs flurry of big-name firms to retreat, Politico, DEI fight reignites, SHRM, As Political Tensions in the Workplace Ramp Up, Experts Call for Action on Civility, Forbes, Talking Politics In The Office Can Be Dicey During A Close Campaign
