IBM to pay $17M to settle US diversity practices probe
What's the story
IBM has agreed to pay $17 million as part of a settlement with the US government. The comes after an investigation into the company's diversity, equity, and inclusion (DEI) practices. This is the first case resolved under the Department of Justice (DOJ)'s "Civil Rights Fraud Initiative," which was launched last year to investigate DEI policies using civil anti-fraud laws.
Allegations
Accusations against IBM and the settlement details
The US government accused IBM of employing a "diversity modifier" that linked bonus compensation to meeting demographic targets, among other things. The settlement also revealed that IBM had either terminated or modified several programs and policies in question. However, the tech giant refuted these claims and denied any unlawful conduct on its part.
Policy perspective
Shift in federal stance on DEI initiatives
The White House has criticized DEI practices as being anti-merit and discriminatory toward certain groups, including white people and men. In light of this, President Donald Trump has signed executive orders mandating federal contractors and subcontractors to eliminate DEI from their operations. Following these directives, many US companies have either scaled back or modified their diversity policies.