Business Diversity Principles, 83380-83382 [2023-26254]

Agencies

• DEPARTMENT OF COMMERCE

[Federal Register Volume 88, Number 228 (Wednesday, November 29, 2023)]
[Notices]
[Pages 83380-83382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 www.regulations.gov 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 [email protected]. Please 
direct media inquiries to Valerie Keys in the Office of Public Affairs 
at 202-802-8166 or [email protected].

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), https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters.
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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

[[Page 83381]]

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 
www.commerce.gov.

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 www.regulations.gov. 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

[[Page 83382]]

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]
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