President’s Letter: When Institutions Stand Firm

Dear friends,

Following an authoritarian breakthrough, much depends on whether powerful institutions stand for fundamental freedoms or “obey in advance” under pressure. Over the past 19 months, many leaders of these institutions behaved as though capitulation was the practical choice, while standing up for principles they once passionately espoused would carry an untenable cost. 

But what if the right thing to do is also a sound business decision? We now have evidence that shows the cost of resistance is often overstated. The financial risks that many leaders feared never materialized.

In a new research paper, UC Berkeley political scientist Jacob Grumbach examines what happened after major corporations faced political pressure to abandon diversity, equity, and inclusion (DEI) initiatives. 

Covered by The Guardian, his analysis shows that in the long run, companies that held their ground performed as well as — or in some cases better than — those that capitulated.

“‘No matter how we measure DEI in companies, we find the same answer,’ he said: holding on to DEI promises ultimately had no impact on financial performance.”

Often when we feel under threat, our instinct is to go it alone, lay low, and hope we don’t get singled out. But we have other choices. There is strength in numbers. Some of the most effective responses to the administration’s efforts to weaken our democracy have come from institutions that acted collectively — from hundreds of charitable foundations organizing through Unite in Advance, to Chicago’s civic leaders standing together through United for Chicago, to the powerful joint decision by news outlets refusing to comply with new Defense Department restrictions on their reporting. 

At a moment when democratic institutions are being tested, I hope you’ll read Grumbach’s research and consider the lessons it offers all of us as leaders and citizens whose choices will determine the future of our freedoms.

In solidarity,

Deepak Bhargava