The Untold History of DEI: From Racial Sensitivity to Business Strategy

Understanding the history of Diversity, Equity, and Inclusion work is essential to grasp why DEI efforts look the way they do today. The journey begins in the 1960s and 70s with racial sensitivity training, designed to foster dialogue and reconciliation during turbulent social times.

These early trainings often used facilitated encounter groups that encouraged participants to confront biases. While innovative, they sometimes provoked backlash due to confrontational methods and lack of leadership support. Many programs were diluted or abandoned as a result.

Affirmative action policies sought to mandate representation and outcomes but faced significant legal challenges. The landmark 1978 Supreme Court Bakke decision outlawed quota systems, promoting race-neutral approaches and weakening affirmative action’s enforceability.

In response, corporations embraced the 'business case for diversity,' framing DEI as a strategy to enhance innovation, productivity, and profitability. This led to the proliferation of managing diversity programs and training workshops focused on navigating differences rather than mandating equity.

Despite these advances, many organizations struggled with accountability and measuring outcomes. Trainings became widespread but often failed to produce lasting cultural change.

Recognizing this history helps us understand the persistent tension between moral imperatives and profit motives, and why outcome-centered DEI is essential.

By learning from the past, organizations can avoid repeating mistakes and build more effective, accountable DEI strategies.

For detailed historical context and contemporary analysis, see the Harvard Business Review and Diversity Leadership Alliance articles 1 2 .