June 27, 2025 - Issue #18
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ABOUT PROJECT FORWARD
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Led by BRIDGE, Project FORWARD is a cross-industry initiative,
designed to chart our collective path forward and meet the
current moment head-on. In partnership with top experts in
academia, law and our board members, we are dedicated to
equipping, educating, and empowering leaders in diversity,
equity and inclusion (DEI), marketing, and business to
continue to drive inclusive innovation and sustainable growth.
Every Friday, Project FORWARD provides critical updates on
executive orders (EO) and legislative developments, featuring
legal interpretations from
Stacy Hawkins, Esq., Diversity & Employment Practices
Consultant and Rutgers Professor of Law, and
Jessica Golden Cortes, Partner, Labor + Employment Group, Davis+Gilbert LLP. We
will also include the BRIDGE POV and tangible actions to
consider.*
We encourage our community to remain informed and proactive.
If you have questions or insights you’d like to share, please
email
[email protected].
FOR PAST ISSUES OF PROJECT FORWARD WEEKLY GUIDANCE PLEASE VISIT HERE.
*These Project FORWARD updates should not be construed as
legal advice or counsel. They are for educational and
instructive purposes only, to aid our understanding about
how best to actively continue our mission in response to
this moment.
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PREVIOUSLY ISSUED EXECUTIVE ORDERS
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For continued reference these are the EOs targeting DEI and
LGBTQ+ protections that have been issued:
We will continue to monitor activities that relate to these
EOs either directly or indirectly.
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PROXY SEASON 2025: A DEFINING LINE ON DEI
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The 2025 proxy season has now formally closed, concluding
what became a clear referendum on corporate diversity. This year’s season followed the standard rhythm: early
filings beginning in late February, peak activity throughout
April and May, and final votes wrapping by mid-June. What set
this cycle apart was the volume—and the resounding rejection—of proposals aimed at
dismantling diversity, equity, and inclusion commitments
inside major companies.
Anti-DEI proposals, many of them coordinated by politically
motivated organizations including National Center for Public Policy Research (NCPPR),
the National Legal and Policy Center (NLPC), and Strive Asset
Management, focused on stripping diversity metrics from
executive compensation, ending inclusive hiring disclosures,
and reframing DEI as a risk to business performance.
Yet in vote after vote, shareholders rejected that premise
outright. Across companies the support for these proposals
rarely broke 2%. The pattern held firm: capital markets want
companies to stay the course on DEI.
This wasn’t an accident.
In many of these meetings, CEOs and boards directly
addressed the proposals and reaffirmed the strategic
relevance of DEI to innovation, talent access, and long-term
value creation.
Investors didn’t just vote down the resolutions—they sent a
message that leadership on inclusion is now a fundamental
expectation, not an optional position.
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BRIDGE POV
The 2025 proxy season is not a peak of backlash, but a
clarifying moment. These shareholder votes made clear that anti-DEI proposals
were being pushed from the outside in,
as an ideological attack, disconnected from financial
performance, risk oversight, or shareholder priorities.
Investors showed discipline. They distinguished between politicized noise and what
materially drives competitive advantage and
loudly affirmed that politics is not a business
strategy.
For companies,
this creates a new level of mandate. DEI is no longer a
discretionary conversation. It’s a governance issue, a
credibility issue, a reputational issue and, increasingly, a
leadership signal.
The political environment remains volatile. But investor
expectations are not. Boards should take this moment to double
down on clarity and consistency: not just protecting DEI
infrastructure, but actively operationalizing it as part of
how the company wins.
WHAT COMES NEXT: PREPARING FOR PROXY SEASON 2026
Now is the time for companies to quietly prepare for 2026. The
political environment remains unpredictable, but investor
expectations are not. The path forward demands focus,
discipline, and consistency. Three actions matter most.
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Sharpen the DEI–Performance Link: Investors
aren’t looking for ideals—they’re looking for results.
Boards should ensure that DEI commitments are clearly
communicated, supported by metrics, and directly tied to
risk and growth. This means updating public reporting,
auditing KPIs, and showing how inclusion strategies support
business outcomes.
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Engage Shareholders Year-Round: Waiting
until the proxy hits the ballot is too late. Governance
teams should begin proactive briefings with institutional
investors and proxy advisors now. The goal is to build
trust, clarify intent, and make DEI strategy legible as part
of long-term value creation—not a flashpoint.
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Prepare for Pressure—and Respond with Strength: The backlash may evolve, but it’s not going away. Executive
teams should be ready. That includes scenario planning,
coordinated board messaging, internal communications
strategy, and clarity on where the company stands. This is
not just about defense. It’s about showing that inclusive,
equitable systems are how the company leads.
As a framework, organizations should stay anchored in three
core DEI components:
risk mitigation, inclusive culture building, and measurable
business outcomes.
That’s where credibility lives—and where the future of
leadership is being defined.
While these dynamics have played out most visibly in public
company boardrooms, the implications are just as relevant
for the private sector.
Investors may not be casting formal votes, but
the expectations around performance, values alignment, and
leadership integrity apply across the market. The companies
that meet the moment—public or private—will be the ones
building long-term advantage.
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FTC ENTERS INTO CONSENT DECREE LIMITING POLITICAL
BOYCOTTS OF MEDIA PLATFORMS
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As a condition of Interpublic’s acquisition by
Omnicom, the FTC draws a line on advertising and
political targeting.
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OVERVIEW
As part of its approval of the Omnicom–Interpublic merger, the
Federal Trade Commission has entered into a
consent decree that prohibits both companies from
coordinating or initiating boycotts of media platforms based
on political or ideological viewpoints—including viewpoints expressed in the content those
platforms carry.
The decree stems from
allegations that Omnicom and Interpublic may have
previously engaged in practices that crossed the line under
the Federal Trade Commission Act, particularly in contexts
where conservative platforms were excluded from ad
buys. The FTC’s position is now explicit: advertising strategy
cannot be used to suppress or penalize political speech, even
when that suppression is indirect or reputational in nature.
There is one major caveat. The decree allows the companies
to honor explicit client requests to avoid particular
platforms—but only if the request originates solely from the
client, with no suggestion, influence, or filtering by the
agency. The burden of separation now lies with the agency to
demonstrate that decisions are client-led and
viewpoint-neutral.
LEGAL INTERPRETATION
The recent FTC settlement with Omnicom and Interpublic isn’t
happening in a vacuum.
It reflects a broader—and increasingly familiar—pattern:
federal regulators securing politically aligned concessions
from corporations as a condition of doing business.
This kind of pressure has surfaced across multiple agencies.
The FCC, for example, reportedly pushed Verizon to drop its
DEI initiatives in exchange for greenlighting its merger with
Frontier. Similar terms are now in play for the pending merger
between Charter and Cox, and past investigations into Comcast
and NBCUniversal have followed the same playbook.
At the heart of this trend are serious constitutional
questions.
These agreements, while technically “voluntary,” often require
companies to limit or forfeit free speech and free
association—rights protected under the First Amendment. So
far, targeted companies have largely accepted the terms in
order to move forward.
But if one refuses, it could trigger a defining legal
test.
Parallel challenges are already underway.
Lawsuits brought by Harvard and several law firms have
resulted in rulings suggesting that Trump Administration
efforts to penalize DEI programs likely crossed
constitutional lines.
What’s emerging is more than a conflict over political
speech—it’s a broader contest over institutional autonomy. The
ability of companies to define their own values, strategies,
and standards of engagement is increasingly being shaped not
by markets or stakeholders, but by the ideological aims of
regulators.
That tension is growing—and it’s likely to escalate.
BRIDGE POV
This consent decree marks a shift in how
regulatory power is being used in an attempt to shape
corporate behavior aligned along ideological lines.
The FTC’s position
misrepresents brand safety as potential viewpoint
discrimination
and attempts to restrict these two agencies from making media
decisions tied to political or ideological content. It’s a
deliberate attempt to chill values-based positioning at the
institutional level.
But here’s the caveat: the power still lies with the
brands. Clients
retain the authority and discretion to direct where their
dollars go—so long as the decision is theirs alone. That means
companies still control how they manage reputational risk,
uphold brand values, and align with the communities they
serve.
While the signal might be broader, it’s Important to note that
this specifically applies to Omnicom and IPG.
This is a moment for courageous leadership.
An opportunity to clarify internal governance, document the
basis for platform decisions, and reassert the role of
corporate voice—not as political expression, but as strategic
alignment with mission, audience, and trust. What companies
should not do is abdicate that responsibility—or allow
regulators to reshape it through indirect coercion.
At a certain point, that coercion may not just be
ideological. It may be actionable.
If government actors use regulatory leverage to punish
viewpoint-based business decisions,
we may be approaching the threshold of tortious
interference. That legal test is coming. But the leadership
test is already here.
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Codify Governance Protocols: Clarify who
makes decisions about media platforms, under what criteria,
and how those decisions are documented. Agencies can no
longer act on perceived client preferences—those preferences
must be explicit. Brands should ensure their governance
structure supports autonomy, withstands scrutiny, and
reflects mission-aligned judgment.
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Reaffirm Brand Standards—Internally and Externally: This is the moment to make clear what the brand stands for
and what it won’t compromise. That includes articulating how
reputational risk is evaluated, which platform behaviors are
inconsistent with brand values, and how those determinations
are tied to long-term trust, not short-term politics.
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Redefine the Agency Relationship: Brands
should revisit how they brief, direct, and document
decisions with media agencies. This isn't just about
compliance—it’s about making sure the agency is a
transparent executor of brand priorities, not a gatekeeper
or risk buffer. Companies must take full ownership of media
strategy and ensure that agencies operate with clarity
around brand-led, not agency-led, decisions.
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SUPREME COURT UPHOLDS TENNESSEE LAW RESTRICTING ACCESS TO
HEALTHCARE FOR TRANSGENDER MINORS
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Courts rule that states may prohibit
gender-affirming care
for youth under 18
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OVERVIEW
In a high-stakes ruling with national implications for youth
healthcare and LGBTQ+ rights, the U.S. Supreme Court has
upheld a Tennessee law that prohibits transgender minors from
accessing certain forms of gender-affirming medical care,
including puberty blockers and hormone therapy.
The law, enacted in 2023, restricts these treatments for
individuals under 18 when used specifically to treat gender
dysphoria. It was immediately challenged by transgender youth,
their families, and medical providers, who argued the law
violated the Equal Protection Clause by discriminating on the
basis of sex and gender identity.
A lower federal court initially blocked the law from taking
effect, but the Sixth Circuit reversed that injunction.
The Supreme Court has now affirmed the reversal, holding
that the law does not constitute sex-based
discrimination.
In the majority’s view, the statute classifies care based on
age and medical use—not identity—because the same treatments
remain legal for adults and for minors being treated for other
conditions.
LEGAL INTERPRETATION
This case has drawn close scrutiny for two major
reasons—its relationship to broader federal policy, and its
implications for how courts will treat laws targeting
transgender individuals going forward.
First, the ruling effectively legitimizes a broader policy
posture already underway. One of Trump’s early Executive
Orders in 2025 pledged to “Defend Women from Gender Ideology
Extremism and Restore Biological Truth to the Federal
Government.” That order, and subsequent federal agency actions
taken under it,
have directly targeted transgender individuals—particularly
in healthcare and education.
Some of those actions have been blocked in court, such as
the denial of federal funding for transgender healthcare.
Others, like the dismissal of transgender servicemembers
from the military, have been allowed to proceed.
Until now, most decisions have been preliminary.
But this Supreme Court ruling in Skrmetti is a final
decision on the merits, affirming that government action
restricting gender-affirming care for minors does not
violate the Equal Protection Clause.
That outcome signals that similar federal or state
actions—especially those concerning access to healthcare—are
unlikely to be declared unlawful by this Court.
Second, the decision stands in tension with the Court’s
2020 ruling in Bostock v. Clayton County, which held that
Title VII’s prohibition on sex discrimination in employment
extends to LGBTQ+ individuals. While Bostock applied specifically to Title VII, it left open
whether similar protections apply under other federal
laws—such as Title IX, which prohibits sex discrimination in
education—and under the Constitution’s Equal Protection
Clause.
To date, the Court has declined to hold that LGBTQ+
individuals are entitled to heightened constitutional
protection on par with race or sex classifications. Skrmetti
reinforces that reluctance.
Without that heightened scrutiny, it becomes far more
difficult to prove that laws targeting LGBTQ+ individuals,
including those affecting education or healthcare access, are
unconstitutional.
BRIDGE POV
While this ruling marks a legal shift with far-reaching
implications, it does not change what leadership requires. The Court may have upheld the state’s authority to restrict
access to care for transgender minors, but
it did not erase the responsibility of employers to
safeguard dignity, equity, and wellbeing in the workplace
and beyond.
In practical terms, this decision empowers states to enact—and
defend—laws that limit or stigmatize care for transgender
youth.
But, in reputational terms, it puts greater weight on how
private-sector institutions choose to respond. Silence can signal complicity. So can indifference. And
for organizations that serve or employ LGBTQ+ individuals
and their families, neutrality is not insulation—it’s
exposure.
Companies cannot rely on legal minimums to define
leadership.
Healthcare benefits, inclusive policy design, and
culture-building are all areas where the private sector
continues to lead. But
this moment calls for more than continuation. It calls for
a reassertion of values: that inclusion is not conditional,
that support for transgender employees and their families is
not negotiable, and that care—especially for youth—is not
political.
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Reevaluate Healthcare Coverage in All
Jurisdictions:
Ensure that benefits—including gender-affirming care for
dependents—remain consistent, compliant, and protected
across state lines. This may include expanding access
through national providers, reimbursing for out-of-state
care, or offering support through third-party advocacy
programs. Policy should reflect values, not just
regulations.
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Communicate Support Proactively, Not Reactively: Internal communications matter. Employers should clearly
reaffirm their commitment to LGBTQ+ employees and families,
including how benefits, protections, and support will remain
in place regardless of changing state laws. Waiting until
employees ask—or face harm—is too late.
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Strengthen Policy Infrastructure: Review
and reinforce nondiscrimination, medical leave, and
travel-support policies. Align these with federal standards,
but also go beyond them to build consistency across business
units and geographies. The goal is to ensure that
state-level restrictions do not fracture internal
protections or create risk exposure for employees or the
company.
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FEDERAL COURT ENJOINS TRUMP ADMINISTRATION BAN ON US
PASSPORT TRANSGENDER IDENTITY MARKERS
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Nationwide injunction blocks enforcement of State
Department policy restricting gender markers on
federal IDs
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OVERVIEW
Under the Trump Administration’s Executive Order on “Defending
Women from Gender Ideology Extremism and Restoring Biological
Truth to the Federal Government,”
the U.S. State Department implemented a new passport policy
prohibiting individuals from selecting a sex marker that
differs from their sex assigned at birth. This policy
explicitly bans transgender individuals from using gender
identity–based markers on their passports, including the “X”
designation previously available for nonbinary and intersex
individuals.
A coalition of transgender, nonbinary, and gender
non-conforming plaintiffs filed suit to challenge the new
policy.
On April 18, 2025, the federal District Court in Boston issued
a preliminary injunction, blocking enforcement of the policy
against the six named plaintiffs.
On June 17, the court expanded its ruling, certifying a
nationwide class and extending the injunction to prevent
enforcement of the policy against any individual in the
class.
The ruling halts implementation of the policy nationwide—at
least for now—preserving the ability of transgender and
gender-diverse individuals to obtain federal identification
that reflects their lived and legal identity.
LEGAL INTERPRETATION
The court’s certification of a nationwide class and the
extension of the preliminary injunction means that, for now,
all transgender, gender non-conforming, and intersex
individuals must be permitted to continue using gender
markers on U.S. passports that reflect their gender
identity—including the “X” designation. This protection remains in place pending a final decision on
the merits of the case.
However, the durability of that protection is not assured. In
light of the Supreme Court’s recent decision in
Skrmetti—upholding a state ban on gender-affirming care for
minors as referenced above—and its earlier ruling in U.S. v.
Shilling, which allowed the military to proceed with the
dismissal of transgender servicemembers,
there is reason to believe the Court would take a more
deferential view of the passport policy if the case reaches
it.
If the administration appeals, there is a possibility that the
Supreme Court would stay the injunction and allow the new
policy to take effect while the case proceeds. And
given the Court’s current posture toward
transgender-related equal protection claims, it is unclear
whether the plaintiffs will ultimately prevail on the
merits.
The ruling in Skrmetti suggests that as long as the government
can frame a policy as facially neutral and tethered to
administrative or security objectives, constitutional
challenges are likely to face an uphill battle.
BRIDGE POV
This case isn’t just about passport policy—it’s about the legitimacy of identity in public life. The
attempted ban on gender-affirming passport markers reflects
a broader federal push to erase recognition of transgender
and nonbinary individuals in legal and administrative
systems. That move carries both symbolic and practical
consequences—and it
places the burden of dignity, safety, and validation
squarely on the institutions individuals interact with every
day.
For the private sector, this ruling presents a moment of
clarity.
The legal right to self-identification may still be
contested, but the human and business case for affirming
identity is not.
Companies that operate across borders, manage global mobility,
or issue internal credentials
must decide what they recognize: the limitations of a
state-driven definition—or the lived realities of their
people.
Leadership in this context means resisting reduction. It
means ensuring that policies, systems, and employee
experiences reflect not just legal compliance, but core
commitments to inclusion, privacy, and trust. The courts may decide what a passport can say. But
companies decide what their systems recognize—and what kind of
belonging they enable.
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Align Internal Systems with Self-Identified Gender: Review how gender is collected, stored, and displayed
across HR platforms, ID badges, travel tools, and insurance
systems. Wherever legally permissible, systems should
reflect employees’ self-identified gender—not assigned sex
at birth. This includes honoring nonbinary designations and
allowing updates without undue administrative burden.
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Protect International Travelers from Identity Conflict: For global companies, mismatches between legal documents
and internal identity records can pose real risk during
international travel. Establish protocols to support
transgender and nonbinary employees crossing
borders—including pre-travel legal guidance, backup
documentation, and emergency support procedures. Don’t wait
for a crisis to build a response.
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Reinforce Inclusion Through Policy and Communication: Now is the time to publicly reaffirm your organization’s
commitment to transgender and nonbinary inclusion,
especially in the face of federal rollback efforts. That
includes updating nondiscrimination language, providing
access to gender-affirming benefits, and ensuring that
employee communications address the current legal climate
with clarity and care.
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DEPARTMENT OF JUSTICE & STUDENTS FOR FAIR ADMISSIONS
(SFFA) FILE MOTION TO DISMISS ACTION AGAINST US NAVAL
ACADEMY
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OVERVIEW
In June 2023, the U.S. Supreme Court ruled in Students for
Fair Admissions, Inc. v. Harvard University that Harvard’s
race-conscious admissions policy was unlawful.
However, the Court explicitly exempted military academies
from its ruling, citing the government’s interest in
maintaining a diverse officer corps.
Despite that carve-out,
SFFA filed suit in October 2023 against the U.S. Naval
Academy, challenging its use of race in admissions. In
December 2024, a federal district court in Maryland ruled in
favor of the Academy,
holding that the federal government has a compelling interest
in cultivating diversity within the military and that
deference is owed to military judgment on matters of national
security.
Following a change in Administration, the Department of
Justice opted to settle the matter. DOJ agreed to end the use
of race in admissions at the Naval Academy and, together with
SFFA, filed a joint motion to dismiss the case and vacate the
district court’s ruling.
A similar lawsuit against West Point, also brought by SFFA in
September 2023, remains pending in the Southern District of
New York. When SFFA sought an emergency injunction from the
Supreme Court to suspend West Point’s diversity admissions
policy while litigation proceeds, the Court denied the
request.
While the Court emphasized that the denial should not be
interpreted as a signal on the merits, many legal observers
viewed it as a tacit recognition of a potential military
exception to the Harvard precedent.
LEGAL INTERPRETATION
The District Court’s ruling in favor of the U.S. Naval
Academy effectively granted a narrow exception to the
Supreme Court’s decision in SFFA v. Harvard, allowing the
Academy to continue using race as a factor in admissions
based on the government’s interest in building a diverse
officer corps.
But that exception may not stand. If the joint motion by the
Department of Justice and SFFA to vacate the ruling is
granted, the District Court’s decision will be formally
withdrawn and carry no legal force or precedent.
Given the DOJ's willingness to settle the Naval Academy case
by ending race-conscious admissions practices voluntarily, it
is increasingly likely the same approach will be applied in
the parallel case involving West Point. A settlement there
would remove the question from judicial review—at least for
now.
If both cases are resolved without a final ruling, the Supreme
Court will not be forced to address whether military academies
warrant an exception to the general prohibition against
race-based admissions in higher education.
That leaves the question unresolved—and the precedent from
SFFA v. Harvard effectively extended by default into
military contexts.
BRIDGE POV
The DOJ’s decision to settle this case wasn’t about legal
defeat—it was about legal avoidance. By agreeing to withdraw the policy and dismiss the
case,
the administration has mooted the central question: whether
military academies are constitutionally permitted to
consider race in admissions. In doing so, it avoided giving
the courts an opportunity to litigate the issue and
potentially affirm a narrow, security-based exception to the
broader Harvard ruling.
But that choice comes with tradeoffs. By vacating the lower
court’s ruling, the administration erased a potentially
influential precedent. The Fourth Circuit’s decision in favor
of the Naval Academy—recognizing a compelling governmental
interest in officer corps diversity—will carry no legal weight
going forward. The issue now remains unresolved.
For the private sector, this is less a warning than a cue:
don't wait for the courts to define your space. The business case for building representative leadership
remains strong—and so does the public expectation to act on
it.
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Advance Diversity Through Resilient, Mission-Aligned
Criteria: Re-examine leadership development, early-career talent
programs, and selection processes to ensure they remain
equity-driven while legally durable. Focus on
multi-dimensional criteria—experience, geography,
first-generation status, community engagement—that address
opportunity gaps without relying on race alone.
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Preserve Progress with Clear, Values-Driven
Communication: Clarify your organization’s commitment to diversity and
representation as a strategic priority, not a legal risk.
Avoid walking back inclusive policies due to public pressure
or political shifts. The absence of legal precedent is not a
reason for silence—it’s an opportunity to lead on your own
terms.
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Stay Ready for a Changing Legal Landscape:
Just because this case was dismissed doesn’t mean the
question is settled. Legal uncertainty is now part of the
terrain. Equip your HR, legal, and DEI teams with frameworks
for designing race-aware programs that withstand evolving
regulation and public scrutiny—especially in sectors where
workforce composition is tied to performance, innovation, or
trust.
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COMMUNITY EVENTS
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BRIDGE invites everyone to join for our
monthly Community Calls which take place on
the last Thursday of every month, gathering DEI marketing, and
business leaders committed to driving systemic change within
our organizations and the industry at large.
Our next call is
Thursday, July 31st from 12-1p ET.
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1276 Auto Park Way Suite D, PMB 183, Escondido,
CA 92029
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