Businessperson asserts DEI initiatives aid companies, counter to Musk’s claim that they’re ‘another term for racism
Elon Musk and Mark Cuban engaged in a dispute on Wednesday regarding the significance of diversity, equity, and inclusion programs in US companies, prompted by the resignation of Harvard’s first Black president.
Critics of Claudine Gay, who spoke out against “tired racial stereotypes” in the opposition to her presidency, suggested she had benefited from Harvard’s emphasis on diversity rather than her qualifications.
Musk, the world’s wealthiest individual with thousands of employees across Tesla, SpaceX, and X (formerly Twitter), asserted on his social network that diversity, equity, and inclusion (DEI) were “just another word for racism.”
Cuban, the entrepreneur and investor known for owning the Dallas Mavericks NBA team and featuring on the reality TV show Shark Tank, dismissed Musk’s stance. In a series of posts, he contended that such initiatives are beneficial for business, allowing companies to discover top talent, optimize employee performance, and enhance productivity by alleviating “unnecessary” stress.
“Successful businesses explore overlooked areas,” stated Cuban, 65. “You may not agree, but I assume that individuals from various races, ethnicities, orientations, etc., are consistently overlooked in hiring considerations.”
Musk’s response was triggered by an essay from Bill Ackman, the hedge fund magnate and Harvard benefactor, who had been a prominent critic of Gay. Ackman expressed his belief that diversity, equity, and inclusion efforts were “racist” and hazardous. He voiced concerns about “reverse racism” and “racism against white people,” viewing DEI as a potent movement that has permeated Harvard and the broader education system, which he felt needed opposition.
“Shame on anyone who uses” the term DEI, wrote Musk, 52, in response to Ackman on Wednesday. When a user expressed their disagreement, stating they didn’t think DEI was comparable to racism, Musk retorted: “Discrimination on the basis of race, which DEI does, is literally the definition of racism.”
Cuban countered that Musk was missing out. “By broadening our hiring search to include them, we can find people that are more qualified. The loss of DEI-phobic companies is my gain,” he remarked.
DEI programs, encompassing hiring initiatives and anti-bias training, aim to diversify organizations and address inequality.
Cuban expanded on his response to Musk by delving into the philosophical aspects of being a good employer. He emphasized that equity is a fundamental principle of business, urging employers to place their employees in positions where they can succeed. He stressed the importance of recognizing individual differences and leveraging strengths whenever possible.
Regarding inclusion efforts, Cuban explained that the focus is on creating an environment where all employees, regardless of their identity or self-perception, feel comfortable and capable of performing their jobs.
After Cuban’s tweets, Musk commented, “Cool, so when should we expect to see a short white/Asian woman on the Mavs?”
Later on Thursday, Ackman joined the conversation, completing the billionaire debate with a comment to Cuban: “That’s exactly what I thought until I did the work. I encourage you to do the same and revert. DEI is not about diversity, equity, or inclusion. Trust me. I fell for the same trap you did.”
Musk concurred with a simple, “Yup.”