DE&I and Pride Month: Insurance Considerations

Many DE&I (Diversity, Equity, and Inclusion) programs sponsor Pride Month activities. As Pride Month draws to a close, there’s a current litigation trend to be aware of in the DE&I space.

Articulating a Stance

Organizations on both extremes of DE&I issues — those who take hard public stances and those who haven’t articulated a stance yet — are seeing an increase in D&O (directors and officers) liability suits.

Because corporate law imposes fiduciary duties on both the board of directors and senior management to consider the interests of all the stakeholders, organizations can find themselves in uncomfortable predicaments. If they take a DE&I stand too strong, they may alienate some stakeholders. Conversely, if they don’t take a strong stand, they may upset stakeholders. Both scenarios can lead to lawsuits.

• Does the organization’s actions match its stated DE&I policies?
• Is the organization taking enough action to meet legal requirements?
• How well do the DE&I decisions serve the interests of the firm and its stakeholders?

Keep these questions in mind as you reflect on Pride Month and how you support DE&I year-round.

Amplifying LGBTQ+ Voices for Pride Month

Pride Month, observed during entire month of June, draws attention to the significance of LGBTQ+ inclusion, raises awareness, and commemorates the 1969 Stonewall Uprising. It embraces identity acceptance and belonging, celebrates diversity, challenges stereotypes, and advocates against discrimination. Observing this month in a meaningful way is an important element of a DE&I strategy.

Many organizations take this opportunity to encourage education, discourse, and collaboration. They:

• Plan a variety of Pride Month events like panels, movies, celebrations, and parade participation
• Partner with LGBTQ+ organizations and host speakers who can share their experiences and insights
• Elevate employee perspectives by inviting LGBTQ+ employees to share their stories and experiences
• Provide educational resources and workshops to help employees learn about LGBTQ+ history, challenges, and contributions

Through these opportunities, participants get training on LGBTQ+ terminology, issues, and allyship to better understand and support the community.

Affirming DE&I Year-Round

What happens after Pride Month can influence a court’s opinion in a discrimination suit.

Genuine support for LGBTQ+ employees doesn’t stop when Pride Month ends. Inclusive employers integrate LGBTQ+ themes into everyday discourse. They engage in support and advocacy throughout the year.

Furthermore, Diversity, Equity, and Inclusion are pillars to be engrained into the very fabric of well-led organizations. The following DE&I initiatives help foster a welcoming environment for all:

• Attract a diverse candidate pool by advertising job postings on platforms and in communities that serve underrepresented groups
• Mitigate unconscious bias through blind resume screening
• Implement mandatory training for employees and leadership on unconscious bias, microaggressions, and inclusive language
• Educate about the impact of bias in hiring and general decision-making
• Review policies and benefits for inclusivity and equity (consider including gender-neutral language, disability accommodations, and flexible work arrangements)
• Implement formal mentorship programs to boost the career development and advancement of underrepresented employees
• Encourage leaders to advocate for diverse talent
• Create management policies that hold leaders accountable; unwavering adherence to DE&I by top leadership is vital for fostering an equitable and inclusive work environment
• Evaluate DE&I initiatives regularly through surveys, focus groups, and employee feedback to gauge effectiveness (utilize insights to adapt and enhance the programs as needed)

Business Implications

Ideally, employers implement robust DE&I strategies as part of a caring culture, but there is also a clear business case. Creating a sense of community and belonging makes it easier to attract and retain top talent. Additionally, when your organization embraces diversity, promotes equality, and combats prejudice with strong DE&I initiatives, you are likely reducing the potential for discrimination / employment practices liability claims and litigation.

DE&I efforts are fundamental to the success and vitality of organizations and everyone within. Celebrating Pride Month fosters a culture of acceptance that enhances your employer brand and organizational reputation, while providing important allyship.

Because people are your organization’s greatest asset, it's crucial to prioritize inclusivity and uphold the rights and wellbeing of all employees.