Elon Musk and Mark Cuban exchanged barbs this week over the value of diversity, equity and inclusion (DEI) programs, reigniting debates over the role of identity in business.
Musk Calls DEI “Racist,” Cuban Pushes Back
The confrontation began when Elon Musk tweeted that diversity, equity and inclusion initiatives are “just another word for racism.”
“Best way to help inclusion is to stop calling people by their race or gender,” the CEO of Tesla and Twitter wrote.
Mark Cuban, billionaire owner of the Dallas Mavericks, fired back by touting his team’s commitment to DEI and bonus structure tied to gender and racial diversity goals.
“Our perspective is if you stop looking at people that are not like you, you will miss out on great talent and great leaders,” Cuban said. “The loss of ‘DEI-phobic’ companies is my gain.”
The online spat comes amidst growing scrutiny over the value and impact of corporate DEI initiatives.
What Sparked the Debate?
The debate was sparked earlier this week when Bill Ackman, founder of hedge fund Pershing Square Capital, questioned the hiring process of Harvard University’s first Black faculty dean, Claudine Gay.
Ackman suggested Gay’s appointment was influenced by her race and gender rather than qualifications. Elon Musk agreed, quoting Ackman’s tweet and calling DEI “racist.” Mark Cuban then jumped in to defend his own commitment to diversity hiring.
Musk Doubles Down on Anti-DEI Stance
Since his initial tweet, Elon Musk has doubled down on his opposition to corporate DEI programs:
- He called Cuban a “hypocrite” and asked when the Mavericks will hire “a short, Asian woman” player.
- He tweeted that DEI tells people “they are defined by their race/gender rather than character and who they are.”
- He argued that DEI efforts have increased racial tensions: “A year ago, Americans were increasingly positive regarding race relations, now Democrats view the issue as the country’s #1 problem.”
Musk also points to his hiring record at Tesla and SpaceX as evidence that he supports inclusion without formal DEI measures. Both companies employ higher percentages of women and underrepresented minorities than other tech firms.
Cuban Touts Mavs’ DEI “Best Practices”
Mark Cuban highlighted his $10 million commitment to address racial inequality after the George Floyd protests in 2020. He also noted that the Mavericks organization has established several DEI best practices:
- Executive bonuses are tied to boosting gender, racial and ethnic diversity among managers
- 40% of Mavs employees are women and 43% are people of color
- Unconscious bias training for all employees
- Zero tolerance anti-harassment policies
“DEI drives our organization to be better, smarter, stronger,” Cuban tweeted. “If you don’t get that, you don’t get business.”
He also implied that Tesla still has progress to make on inclusion, pointing to recent racial discrimination lawsuits against the electric car maker.
What’s Next in the Debate?
The public debate between two of the world’s most prominent entrepreneurs is likely to increase attention on the complex issues around corporate approaches to diversity, equity and inclusion.
Some key questions in the unfolding conversation:
- Are formal DEI policies and targets effective in reducing discrimination and boosting diversity? Or are they themselves a form of “reverse racism” as critics like Elon Musk suggest?
- What hiring and retention practices meaningfully support inclusion while maintaining high standards?
- Can organizations embed inclusive cultures without explicit DEI programs and policies? What are the limitations of trusting implicit biases will be overcome?
- How much transparency should there be around DEI goals and outcomes like representation rates and demographic pay gaps?
For now, corporate America’s embrace of DEI seems unlikely to slow even with detractors like Musk. But the perspectives of business leaders like him and Cuban will continue to shape how companies balance diversity commitments with hiring based on merit alone.
Public Opinion Split on Value of DEI
Surveys show US public opinion almost evenly divided on corporate diversity, equity and inclusion (DEI) efforts:
| Supports Company DEI Efforts | Opposes Company DEI Efforts |
|---|---|
| 49% | 47% |
Support is highest among younger, college-educated, urban Americans as well as Black and Hispanic adults. Opposition is generally higher among older, white, rural Americans without college degrees.
Views also differ sharply across partisan lines:
| Support | Oppose | |
|---|---|---|
| Democratically-leaning registered voters | 67% | 27% |
| Republican-leaning registered voters | 30% | 64% |
So there are still open questions whether prevailing public opinion will further accelerate or slow business world momentum around DEI commitments in the years ahead.
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