“I hope that people read the bill because it has wide ranging implications that a lot of the members don’t even think about and don’t even want discussed,” said state Sen. Tameika Isaac Devine, D-Richland. “But I think they have the numbers to pass it.”
What does this mean for South Carolina’s economy?
Carl Blackstone, the president and CEO of the Chamber of Commerce, said the bills’ sweeping breadth is likely to only make things more difficult for small businesses. Half of all small businesses fail within three years, Blackstone said.
“Many of the businesses in South Carolina have a nuance, whether they are veteran owned or minority owned,” Blackstone said. “We need clarity from the legislature about the types of programs. Because we have a program that helps small businesses that have trouble getting access to capital, is that DEI?”
In recent years, South Carolina has enjoyed an economic flourishing. In 2023, South Carolina had the fourth highest net migration of any state. South Carolina’s gross domestic product grew 4. 5 % in the first half of 2024, and new industries, like data centers and electric vehicle manufacturer Scout, have been held up as proof of the state’s economic renaissance.
But laws compelling how companies, including major multinationals, govern internal culture could dampen the perception that the state is open for business, according to business leaders and policy makers.
“I think that we’re going to see a lot of things that people rely upon in this state shutting down in our state. It’s going to set out state back years, if not
decades,” Devine said.
“I think this is going to have a significant impact on the economics in our state. I think we’re going to end up with an even more imbalanced system,” said Brenda Murphy, president of the South Carolina Conference of the NAACP. While women and people of color in South Carolina have made advances in terms of salary and opportunity, Murphy said this law would be part of a larger “rollback” of those gains even as state leaders are trying to encourage more people and businesses to move to the state.
“Our concern is really broader than DEI — this is just one of the symptoms,” Murphy said.
Were the bill to pass in its current form, the state should expect a challenge on First Amendment grounds, said Jay Bender, a Columbia media lawyer.
“The government cannot do indirectly what it cannot do directly, it cannot circumvent the constitution by having this provision in there,” said Bender, who has represented The State. “If I have a company and want to have training for employees that recognizes history or differential treatment for different categories of person, I have a right to do that.”
