Explainer

Diversity Targets

Advancing DEI Initiative

Diversity targets are specific, often numeric goals expressed by an organization to increase the representation of underrepresented groups. These targets can pertain to race, gender, or any other underrepresented group within the organization. For example, an organization might announce that it aspires to increase its representation of women leaders by 25% over a period of five years.

Diversity targets are separate from diversity quotas, which require a specific number or percentage of positions in hiring or promotions to be filled by an underrepresented group. Unlike quotas, which carry significant legal risk, we consider diversity targets to be lawful if designed carefully to be aspirational, and provided that employment decisions (such as hiring and promotion) do not consider race, sex, or any other protected characteristic. However, this is an evolving area of law, so we encourage leaders to seek legal counsel if they plan to adopt or maintain diversity targets in the current environment.

Since the Supreme Court's Students for Fair Admissions decision, there has been an increase in lawsuits challenging diversity targets. In these cases, the plaintiffs, who are typically white and/or men, claim that they experienced negative employment actions (such as not getting hired, getting fired, or getting passed over for a promotion) because of organizations’ efforts to achieve diversity targets. Many of these cases are in the early stages of litigation, so it is unclear if or how they will impact the current law on diversity targets. Nonetheless, organizations can take the following steps to mitigate the risk that diversity targets will be mistaken for quotas or mandates:

  • Describe the target using aspirational language (such as “aim,” “aspire,” and “strive”) rather than rigid language (such as “will,” “ensure,” or “require”). 

  • Ensure that staff are educated on legal practices and instructed not to consider protected characteristics such as race or sex in hiring and promotion decisions.

  • Adopt and consistently apply structured and fair hiring and promoting practices that eliminate barriers to entry for historically underrepresented groups.

  • Avoid implicitly or explicitly linking manager compensation, promotions, or benefits to achieving the diversity target.