Are We Seeing The Segregation Of Corporate America?

Here’s an excerpt from this week’s CEO newsletter, with Megan Poinski.

Americans can be a fickle lot–optimistic about their own futures, for example, while pessimistic about the direction of the country, according to the latest Harris Poll. But they have also traditionally been creatures of compromise who will put their country first in a crisis and prioritize civility over politics at work.

That may be changing as politics becomes more polarized and geopolitical crises like the Israel-Hamas War unleash rhetoric that demonizes people with opposing views. The keepers of corporate culture may have to reimagine what it means to bring your “whole self” to work and invest more time and resources in restoring civility as a core value in communication.

There are specific manifestations to worry about. In the same way that the death of George Floyd put a focus on institutionalized racism against Black people, events in the Middle East have put a focus on antisemitism and Islamophobia. While much of the attention has been on college campuses and the alleged hypocrisy of their DEI policies when it comes to antisemitism, there’s growing concern about politics and discrimination in the workplace, too. Jewish employees at TikTok have complained about antisemitism and hateful content on their employer’s platform. The Council on American-Islamic Relations (CAIR) has tracked a rise in anti-Palestinian rhetoric from U.S. employers, too.

Bill Schaninger, a senior partner with Modern Executive Solutions, sees a growing risk of segregation in Corporate America. (See the video above) In the same way that people self-select to congregate in certain neighborhoods or friend groups, they may increasingly choose to work only with people who hold their political beliefs.

The instinct is understandable when some employees hold fast to beliefs that alienate their colleagues. This is especially true for Trump supporters, more so than for Republicans who support Florida Governor Ron DeSantis or former UN Ambassador Nikki Haley, according to a recent Pew Institute study.

That, in turn, could lead to less diversity which many studies show to be detrimental to a company’s bottom line. It’s also detrimental to talent recruitment and retention, not to mention productivity And of course there can be legal repercussions in allowing rhetoric or behavior that creates a hostile work environment.

But the most compelling argument for prioritizing civility and inclusion at work is a moral one: companies that aim to serve a diverse array of consumers need to embrace that diversity in their workforce and their mission. 2024 will no doubt be a year where these discussions are brought into the C-suite and the boardrooms of companies that understand the business case for addressing a disturbing trend.