LINK There's a brewing backlash against DEI in corporate America — and a venture capital fund getting sued for racial bias for offering small business grants to black women only is now caught in the middle
A small, Atlanta-based, black women-led venture firm called Fearless Fund was one of them. And now it's at the center of a lawsuit filed by the conservative nonprofit American Alliance for Equal Rights – the same organization headed up by Edward Blum that clinched a victory against affirmative action in college admissions before the US Supreme Court.
The nonprofit claims in the lawsuit that a small business grant program run by Fearless Fund is racially discriminatory because black women are the only eligible participants, therefore violating a section of the Civil Rights Act of 1866, which bars racial bias in private contracts.
"Their motive is clear: they want to disrupt the vital work of Fearless Fund and similar institutions and organizations whose primary mission is to provide underrepresented communities with an economic engine to build, sustain and scale their businesses," said Fearless Fund in a press release.
In July, shortly after the affirmative action ruling, the attorneys general of 13 states issued a letter to companies in the Fortune 100 – the largest companies in the US ranked by revenue, which include Microsoft, Coca-Cola, and Walmart – "to refrain from discriminating on the basis of race, whether under the label of 'diversity, equity, and inclusion' or otherwise."
The fact that an enterprise is small is no excuse for engaging in racial discrimination.
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