Notice2023-26254
Business Diversity Principles
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 29, 2023
Issuing agencies
Commerce Department
Abstract
The Department of Commerce is seeking public input on the draft Business Diversity Principles (BDP), which describe best practices related to diversity, equity, inclusion, and accessibility (DEIA) in the private sector, and on the impact of DEIA initiatives.
Full Text
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<title>Federal Register, Volume 88 Issue 228 (Wednesday, November 29, 2023)</title>
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[Federal Register Volume 88, Number 228 (Wednesday, November 29, 2023)]
[Notices]
[Pages 83380-83382]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26254]
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DEPARTMENT OF COMMERCE
[Docket Number: 231121-0276]
Business Diversity Principles
AGENCY: Office of the Secretary, U.S. Department of Commerce.
ACTION: Notice; request for information.
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SUMMARY: The Department of Commerce is seeking public input on the
draft Business Diversity Principles (BDP), which describe best
practices related to diversity, equity, inclusion, and accessibility
(DEIA) in the private sector, and on the impact of DEIA initiatives.
DATES: Comments must be received by January 5, 2024.
ADDRESSES: To respond to this Request for Information (RFI), please
submit electronic public comments via the Federal e-Rulemaking Portal.
1. Go to <a href="http://www.regulations.gov">www.regulations.gov</a> and enter DOC-2023-0003 in the search
field,
2. Click the ``Comment Now!'' icon, complete the required fields,
and
3. Enter or attach your comments.
Comments sent by any other method, to any other address or
individual, or received after the end of the comment period, may not be
considered.
FOR FURTHER INFORMATION CONTACT: Brandee Anderson, Senior Advisor to
the Deputy Secretary, at 202-880-4006 or <a href="/cdn-cgi/l/email-protection#0361626d676671706c6d43676c602d646c75"><span class="__cf_email__" data-cfemail="4e2c2f202a2b3c3d21200e2a212d60292138">[email protected]</span></a>. Please
direct media inquiries to Valerie Keys in the Office of Public Affairs
at 202-802-8166 or <a href="/cdn-cgi/l/email-protection#dbadb0bea2a89bbfb4b8f5bcb4ad"><span class="__cf_email__" data-cfemail="b2c4d9d7cbc1f2d6ddd19cd5ddc4">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
On January 21, 2021, President Biden signed Executive Order 13985,
Advancing Racial Equity and Support for Underserved Communities through
the Federal Government. On February 16, 2023, President Biden signed
Executive Order 14091, Further Advancing Racial Equity and Support for
Underserved Communities through the Federal Government. Under these
Executive Orders, the Biden-Harris Administration outlined an
``ambitious, whole-of-government approach to racial equity and support
for underserved communities'' that ``continuously embed[s] equity into
all aspects of Federal decision-making.'' Additionally, E.O. 14091
declared that ``the Federal Government shall continue to pursue
ambitious goals to build a strong, fair, and inclusive workforce and
economy'' and ``invest in communities where Federal policies have
historically impeded equal opportunity--both rural and urban--in ways
that mitigate economic displacement, expand access to capital . . . and
build community wealth.'' Equitable participation in our Nation's
economy provides a path to economic prosperity and intergenerational
wealth for Americans in underserved communities and ensures that the
economy benefits from the talent and potential across the country. The
Department of Commerce is committed to implementing Executive Orders
13985 and 14091 and is developing the Business Diversity Principles
(BDP) Initiative as part of its 2022-2026 Strategic Plan goal of
promoting inclusive capitalism and equitable economic growth for all
Americans. The BDP Initiative aims to foster a more equitable economic
landscape by encouraging businesses to learn from each other's
successes and adopt best practices and strategies that help promote
economic growth in underserved communities through diversity, equity,
inclusion, and accessibility (DEIA) initiatives. This Initiative seeks
to recognize the range of private sector efforts that focus on DEIA,
including but not limited to human resources, workforce development and
supplier diversity efforts. In recognition of the wide array of terms
used to describe these efforts, the Department will collectively refer
to these private sector initiatives that seek to advance equitable
economic development under the umbrella term ``Business Diversity.''
Research shows that these initiatives are essential to the
competitiveness of the Nation's businesses and overall American
economy.\1\ The Business Diversity Principles Initiative is an
opportunity for the Department to: (i) advance equity and support for
underserved communities, and (ii) invest in the Nation's
infrastructure, emerging and critical technology fields, and workforce
development. The Department of Commerce's mission is to create the
conditions for economic growth and opportunity for all communities. The
Business Diversity Principles advance this mission by enabling the
private sector to gain cross-industry insights, expand existing
efforts, and embed Business Diversity across their business operations.
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\1\ McKinsey & Company, ``Diversity Wins: How Inclusion
Matters,'' (May 19, 2020), <a href="https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters">https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters</a>.
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The Initiative seeks to help private sector institutions build on
their commitments to equity and economic development by providing a set
of best practices (the ``Business Diversity Principles'') and other
tools for operationalizing Business Diversity. The Department of
Commerce intends for the Business Diversity Principles to serve as the
first step in a longer term effort to convene private sector Business
Diversity leaders, amplify existing efforts, and inspire additional,
voluntary Business Diversity efforts. In addition to developing the
Business Diversity Principles, this RFI will help the Department shape
the next phase of the Initiative, which may include other public
engagement opportunities.
Goals of This Request for Information
This RFI invites the public to inform the content of the Business
Diversity Principles, share success stories and best practices related
to Business Diversity, and comment on the impact of DEIA initiatives.
Comments are invited from all interested parties, including private
sector employers, workers, Business Diversity subject matter experts,
educational leaders, civil rights advocates, and any other relevant
stakeholders. The goal of this RFI is to gather input that will be used
to refine the Business Diversity Principles and refine the next phases
of the Initiative, and develop resources to help the private sector
bolster, enhance and expand its Business Diversity efforts.
The Department of Commerce seeks input on the below draft Business
Diversity Principles as well as the impact of Business Diversity
initiatives.
[ssquf] Feedback on Draft Business Diversity Principles--The
Department developed the draft Principles based on input from the
private sector and subject matter experts, in addition to secondary
research on private sector best practices related to Business
Diversity. The draft Principles center on the following six pillars:
(1) executive leadership, (2) organizational strategy, (3) workforce
development, (4) human resources, (5) community investment, and (6)
business opportunities. The Department is interested in hearing from
members of the public on the draft Principles.
[ssquf] Existing Business Diversity Efforts--The Nation's economic
competitiveness depends on a highly skilled, diverse workforce capable
of meeting companies' current and future needs. Private sector Business
Diversity efforts seek to ensure that all workers, suppliers, and
communities are
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included in the organization's economic prosperity. The Department is
interested in hearing from members of the public and the business
community on existing Business Diversity efforts, including real world
examples of strategies and best practices relating to the Business
Diversity Principles.
Business Diversity Principles
Each of the following six principles presents a set of strategies
and objectives aimed at promoting equity and economic development.
These principles function as an organizational framework for best
practices and offer clear actions that institutions can take to drive
equity, innovation, and economic growth.
Executive Leadership: Strive for diverse c-suites and corporate
boards by developing clear strategies to increase diversity among the
organization's executive ranks. Understand and break down barriers to
executive roles for internal and external candidates. Ensure leaders
model equitable and inclusive behavior and possess key competencies,
such as empathy, cultural competence, and inclusive leadership. Ensure
leaders have the necessary resources to drive business diversity
efforts, such as toolkits, research, and access to DEIA professionals.
Recognize leaders' commitment to Business Diversity and hold them
accountable through performance evaluations and compensation.
Organizational Strategy: Use comprehensive assessments to evaluate
the current state of Business Diversity within the organization,
including demographic data across all levels and departments, company
policies, practices, and workers' perceptions. Develop and maintain
DEIA councils, which oversee the implementation of Business Diversity
initiatives and ensure alignment with overall company objectives.
Regularly share progress updates to promote transparency and
accountability.
Workforce Development: Cultivate and maintain a diverse talent
pipeline by partnering with educational institutions and community
organizations and allocating resources for workforce development
initiatives and accommodations. Remove barriers to entry, using
demographic data to understand workforce composition, identify gaps,
and shape organizational strategy. Equip workers, including those from
underserved communities, with the necessary skills for advancement.
Human Resources: Prioritize the promotion of internal talent,
regularly review promotion data to identify barriers, provide senior
leader sponsors for workers from underserved communities. Establish and
maintain employee resource groups for workers from underserved
communities. Clearly communicate potential internal career paths and
advancement opportunities. Foster work-life balance through HR
policies, such as flexible working arrangements, comprehensive parental
leave, support for caregivers, and inclusive benefits packages.
Business Opportunities: Create an inclusive supply chain that
expands opportunities for entrepreneurs from underserved communities at
all levels, from food service to construction to financial and
consulting services. Invest in mentorship and training programs that
help companies navigate industry challenges, build capacity for
procurement opportunities, and enhance skill sets. Facilitate access to
capital for companies through strategic partnerships and other
innovative approaches. Provide networking opportunities for
entrepreneurs from underserved communities and encourage recognized
certifications to enhance visibility and credibility. Implement
inclusive request for proposal processes that eliminate barriers and
ensure transparency and accountability.
Community Investment: Invest in capacity building and innovation
within communities and ensure the organization's community investment
initiatives are accessible to all and promote economic mobility. Use
scholarships, incubator programs, and other community-based initiatives
to break down barriers and expand opportunities for people from
underserved communities to access employment and business
opportunities. Understand the organization's target communities' needs
and barriers to access. Set measurable goals to track the success of
these initiatives.
Public Meetings
The Department may hold future workshops to explore in more detail
questions raised in the RFI. Notice and details about any potential
future workshop dates and registration deadlines will be announced at
<a href="http://www.commerce.gov">www.commerce.gov</a>.
Details About Responses to This Request for Information
When addressing the topics below, commenters may describe the
practices of their organization or a group of organizations with which
they are familiar. If desired, commenters may provide information to
describe programs and organizations, including information about type,
general demographics, size, and location. The provision of such
information is optional and will not affect the Department's full
consideration of the comment.
All relevant comments received in response to the RFI will be made
publicly available on <a href="http://www.regulations.gov">www.regulations.gov</a>. Comments containing
references, studies, research, and other empirical data that are not
widely published should include electronic copies of the referenced
materials. All submissions, including attachments and other supporting
materials, will become part of the public record and will be subject to
public disclosure. Personal information, such as account numbers or
Social Security numbers, or names of other individuals, should not be
included. Notwithstanding the foregoing, submissions labeled as
confidential business information, or otherwise sensitive or protected
information may be submitted and will not be subject to public
disclosure. Comments that contain profanity, vulgarity, threats, or
other inappropriate language or content will not be considered.
Specific Requests for Information
The following statements and questions cover the major topic areas
about which the Department seeks comment. They are not intended to
limit the topics that may be addressed. Responses may include any topic
believed to inform U.S. Government efforts to bolster, enhance, and
expand private sector Business Diversity efforts that drive economic
growth, regardless of whether the topic is included in this document.
This is a general solicitation of comments from the public.
Respondents are encouraged to respond to any or all of the following
questions and topic areas and may address related topics. Please
identify the questions or topic areas each of your comments address.
Responses may include estimates, if applicable. Please indicate where
the response is an estimate. Respondents may organize their submissions
in response to this RFI in any manner.
The Department is requesting information related to the following
topics:
Feedback on Draft Business Diversity Principles
1. Please provide your feedback on the Business Diversity
Principles. Do you have recommendations for revising these Principles?
2. How can these principles be improved or clarified to better
promote
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Business Diversity in the private sector? Are any best practices
missing, in your view?
3. Are there any specific elements of the Business Diversity
Principles that you would consider especially important?
Existing Business Diversity Efforts
1. To what extent are each of the Business Diversity Principles
aligned with your organization's current practices? Which of the
Principles represent the greatest growth opportunity for your
organization or private sector organizations overall?
2. Please share specific examples of successful Business Diversity
initiatives.
3. Please describe any strategies that have been effective in
promoting Business Diversity in your organization or industry.
4. Are there specific challenges or obstacles that organizations
frequently encounter when implementing Business Diversity initiatives?
How can these be overcome?
5. Do Business Diversity initiatives make your business more likely
to succeed commercially? How?
6. Do Business Diversity initiatives create value and encourage
growth for your business? How?
7. Would the cessation of Business Diversity initiatives harm your
business? How?
8. Does your industry have a history of exclusion, discrimination,
or inaccessibility to any group of actual or potential employees,
executives, business partners, customers, or other stakeholders? If so,
do Business Diversity initiatives help your business and/or industry
remedy the continuing effects of that exclusion, discrimination, or
inaccessibility? How?
9. Does the success of your business and/or industry enhance the
national and/or economic security of the United States? If so, do
Business Diversity initiatives contribute to your ability to advance
that national interest? How?
10. Can the impacts discussed in response to the above questions be
quantified or otherwise measured? How? To the extent available, please
provide data demonstrating those impacts.
11. What role do you believe the government should play in
promoting Business Diversity within the private sector?
12. How can the Department of Commerce and other federal agencies
support private sector Business Diversity efforts? What would be the
most important outcome from this effort?
13. How might the Business Diversity Principles help you in your
day-to-day operations? For example, might the Principles inform your
investment decisions, or purchasing decisions, advocacy focus, the type
of organization you would want to work for, or how you would allocate
business resources toward making a positive impact?
The Department of Commerce appreciates your valuable input and
looks forward to reviewing your submissions.
Dated: November 24, 2023.
Brandee Anderson,
Senior Advisor for Diversity, Equity, Inclusion, and Accessibility.
[FR Doc. 2023-26254 Filed 11-27-23; 8:45 am]
BILLING CODE 3510-20-P
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