Companies have ramped up their pledges to increase diversity over the last few years, and while they largely may not see these programs as a risk, research shows there has been an uptick in litigation relating to diversity issues filed against U.S. companies since 2020.

While experts highlight the many benefits companies reap from increasing workforce diversity, they also say boards should be aware of the possible legal risks that come with such programs. Sources tell Agenda that boards can take measures to help protect themselves and their companies while pursuing diversity strategies that can benefit their business.

…Meanwhile, since 2020, diversity targets have increasingly appeared in companies’ proxies. In 2019 and 2020, for example, only four and seven companies in the Russell 3000 mentioned diversity targets in their proxies, respectively, according to data from public company intelligence provider MyLogIQ.