Israel-Hamas War Response Exposes New Corporate Diversity Hurdle

US corporate diversity teams are navigating uncharted territory as they grapple with how best to talk about the unfolding war between Israel and Hamas internally with their employees.

A slew of businesses including Amazon, Eli Lilly and Delta made public statements shortly after the Oct. 7 surprise Hamas attack that killed more than 1,400 people in Israel. Still, the corporate response to the conflict that has now seen thousands of Israeli and Palestinian deaths has been relatively muted so far when compared to other crises like the war between Russia and Ukraine. Some companies appear unwilling to be too specific in their comments because of the cultural and political complexity of the situation and fears that a statement might be perceived as too polarizing by employees, customers or other stakeholders.

The risk of inciting contention emerged early in the academic world after controversial statements made by students and faculty. Employees at large companies have also started to air concerns about actions that their employers are taking, or lack thereof. On Thursday, Citigroup Inc. said it fired an employee who posted an antisemitic comment on social media.

Diversity, equity and inclusion teams and human resources offices are trying to craft a more nuanced response to the crisis and defray workforce tensions, as well as make their employees feel heard. But most Western companies don’t have a deep understanding of the historical roots of the conflict and the cultural sensitivities in the region, corporate diversity experts said, and will need to adapt to best handle the geopolitical turmoil.

Companies need to “acknowledge that it’s not just business as usual, knowing the pain across the globe,” said Lisa Toppin, a consultant who was previously chief diversity officer of biotech giant Illumina.

“One would think that if the situation in Ukraine called for a very strong statement, why would this not call for something equally strong or stronger,” said Doug Chia, president at Soundboard Governance, adding that corporate statements, or lack thereof, are going to be scrutinized by employees, stakeholders and the general public.

Diversity Focus

Companies are bracing for friction, both externally and internally. Rideshare business Lyft sent out an email to users condemning antisemitism and “all other forms of discrimination on the basis of religion or country of origin.” The company urged Lyft drivers and customers to report any harassment or discrimination that they experience.

“We haven’t seen an increase in incidents, but we are monitoring the situation very closely,” Lyft said last weekend.

Before the war broke out, over two dozen companies including Google and Adidas had already signed onto a pledge against antisemitism proposed by the Anti-Defamation League. The pledge calls for workplaces to update their policies and procedures to address antisemitism at work and more broadly, for example by incorporating the focus into diversity, equity and inclusion efforts.

“There’s no more important time for corporate CEOs to speak out forcefully and without equivocation against antisemitism,” said Jonathan Greenblatt, CEO of the Anti-Defamation League, which on Oct. 11 renewed its online call to CEOs to commit to its pledge.

While many businesses have found themselves fielding questions about conflict in the Middle East and elsewhere in the past, the war has highlighted an urgent need for diversity teams to step up.

“Particularly American-based DEI teams tend not to have a lot of subject matter knowledge” on a swath of geopolitical matters, said Bo Young Lee, president of non-profit AnitaB.org’s advisory services who was previously Uber’s chief diversity officer. “Generally speaking, you’re going to see DEI teams are going to have to invest in a much more long-term strategy” about interreligious and interracial dialogue, Lee added.

Overall, when businesses are responding to geopolitical events, it’s important that whatever statements they make are founded on a real internal commitment, and don’t ring hollow.

“Look at your corporate values and if they implore you to speak or make a statement, follow that lead,” said Lee.

There’s specific action DEI teams can take, like holding space for employees to share and speak about how the war is affecting them, Toppin said. “They need a safe space to share where they are and to be supported,” she said.

Corporate efforts to help those affected by the war must accommodate employees of all backgrounds, the Council on American-Islamic Relations urged.

Businesses are ignoring their own diversity, equity and inclusion policies by disregarding Palestinian people directly or indirectly harmed by the conflict, the Council said on its website, adding that companies should also condemn anti-Palestinian racism and Islamophobia.

“While companies have sought to create spaces of belonging for Israeli employees through the release of statements, their Palestinian ones, who are also significantly affected by the conflict, are frequently left without a sense of support at their place of work,” the Council said on its website.

Employees First

Companies are also grappling with the physical needs of employees in the region, as well as longer-term workforce implications of the war.

“What can you do for your teams in the immediate event of someone being hurt, but also thinking through that longer term,” said Simon Margrave, a partner at Control Risk’s crisis and security consulting practice.

Predicting resource needs can be tricky since the conflict is still unfolding, but businesses must also think about helping employees in the region who may face potential scarcities of essential goods such as baby formula, candles and long-life milk, as well as difficulty accessing cash, Margrave said. He added that he’s spoken to clients also about counseling or other services for emotional as well as physical trauma.

Companies are taking of stock of whether they have expatriates, Israeli or Palestinian employees that need help, as well as if there’s any business travel that would be too risky, Margrave said. And then there are operational and business concerns over supply chains or what to do about facilities in the area.

Margrave is advising clients to inform their staff who aren’t directly affected by the war about what action the company is taking. “You might have employees in London or DC or wherever who may not be directly caught up in events, but they may have colleagues over there and are concerned about what’s happening.”

Roughly two weeks into the conflict, some companies are communicating more at length about the impact the war has had on their operations and workforce.

India-headquartered software company Cyient’s non-executive chairman Krishna Bodanapu said on an earnings call on Oct. 16 that the company has contacted all of its clients, suppliers and employees in the region to confirm that they and their families are safe.

“The Israel-Hamas war is a new variable that we have to be aware of,” Bodanapu said.

Ultimately, companies will need to prepare for what could be a long road ahead of not only physical risks, but disquiet within their workforces.

“For companies, any time there’s a situation where there are acts of violence, their first concern should be thinking about their employees and the people that they have in these regions and the trauma it might have caused to other people not in the region,” said Chia of Soundboard Governance.