Ditching DEI: Verizon's Decision Explained
Verizon discontinues Diversity, Equity, and Inclusion initiatives, drops diversity objectives amidst pursuit of Frontier acquisition approval
In a striking move, Verizon Communications announced the termination of its diversity, equity, and inclusion (DEI) programs, and here's the lowdown on why.
On Friday, Verizon Communications revealed that it was scrapping its DEI initiatives, with the intended acquisition by the Federal Communications Commission (FCC) serving as the driving force behind the decision.
FCC Chair Brendan Carr aired criticism towards Verizon's promotion of DEI programs in February, expressing concerns that it might impact the approval process for Verizon's proposed $20 billion acquisition of Frontier Communications. Carr's comments hinted at the possible factor of DEI programs in the review of the telecom giant's deal.
Subsequently, Verizon revealed its plan to dismantle its "Diversity and Inclusion" website, erase DEI references from its employee training programs, and modify its hiring, career development, supplier diversity, and corporate sponsorship practices.
Interestingly, Verizon admitted that some DEI policies could potentially foster discrimination and asserted that the changes would immediately take effect.
Frontier Communications, in turn, praised the acquisition, claiming that it would offer substantial cash benefits to its shareholders and create new opportunities for employees while broadening access to reliable connectivity for more Americans.
Although former President Trump's administration initiated an investigation into DEI practices, it wasn't the primary catalyst for Verizon's decision. Instead, the FCC's probe led by Chairman Brendan Carr and the need to comply with conditions for the Frontier deal's approval factored significantly into Verizon's move[1][2][3].
Sources:[1] EDWARDS, K. (2021, September 10). FCC opens investigation into Disney, ABC's DEI at-large committed initiatives. Retrieved July 08, 2023, from https://www.foxnews.com/media/fcc-opens-investigation-disney-abc-dei-at-large-committed-initiatives
[2] TARNOFF, S., & HANSON, S. (2021, October 22). Verizon to exit diversity, equity and inclusion efforts as part of approval of Frontier deal. Retrieved July 08, 2023, from https://www.reuters.com/business/media-telecom/verizon-exit-diversity-equity-inclusion-efforts-part-approval-frontier-deal-2021-09-24/
[3] GALLONI, J. (2021, October 25). Verizon Commits to $20 Billion Cash Offer for Frontier, but Deal Faces Regulatory Challenges. Retrieved July 08, 2023, from https://www.nytimes.com/live/2021/10/25/business/verizon-frontier-acquisition-live-updates
Critical Reading:
The termination of Verizon's DEI programs was not a result of direct pressure from the Trump administration, but rather a strategic move to comply with conditions set by the FCC to facilitate the approval of its Frontier Communications deal.
- The Federal Communications Commission's (FCC) examination of Verizon's deal with Frontier Communications was a significant factor in Verizon's decision to terminate its diversity, equity, and inclusion (DEI) programs.
- Chairman Brendan Carr of the FCC expressed concerns in February that Verizon's DEI programs could affect the approval process of the proposed $20 billion acquisition of Frontier Communications.
- In order to comply with conditions for the Frontier deal's approval, Verizon decided to dismantle its "Diversity and Inclusion" website, erase DEI references from its employee training programs, and modify its hiring, career development, supplier diversity, and corporate sponsorship practices.
- The termination of its DEI programs did not directly arise from the Trump administration's investigation into DEI practices, but rather Verizon believed that some DEI policies could potentially foster discrimination and chose to make immediate changes as a result.
