Washington, DC – The California Public Utilities Commission (CPUC) announced Thursday its approval of Verizon’s acquisition of Frontier Communications, after the telecommunications giant committed to a series of investments that align with the state’s diversity, equity and inclusion policies and laws. This is a historic win for diversity advocates and consumers who have been outspoken for months about the benefits of DEI programs for consumers, employees, and profitability. This resolution punctuates the business incentive of DEI and represents the first time a state agency has successfully held a major corporation accountable for retreating from DEI commitments and secured concrete, enforceable solutions with independent oversight.
Verizon committed $500 million to hire small businesses through California’s small business program and established a $10 million partnership with California State University to create recruitment pipelines for underrepresented communities. CPUC will hire an independent compliance monitor to ensure the company continues to comply with these diversity, equity and inclusion commitments.
In response, a coalition of national advocates issued the following statements:
Nadine Smith, President and CEO of Color Of Change:
“This announcement is a powerful reminder that when communities organize and state leaders do their jobs, corporations can be held accountable to the people they serve. A $500 million investment in diverse suppliers is not just a win for equity, but it’s also a signal that public institutions can and should demand real commitments that expand opportunity for working people and Black communities. Color Of Change has been proud to stand alongside state officials pushing for accountability, and we will continue to mobilize to ensure corporate promises translate into lasting impact.”
Alphonso David, President and CEO of the Global Black Economic Forum:
“This decision shows what is possible when regulators center the public interest and resist political agendas. The California Public Utilities Commission made clear that growth and consolidation cannot come at the expense of working people, low-income families, rural communities, or tribal nations. By attaching enforceable conditions around affordability, broadband access, workforce and supplier diversity, and small-business participation, California affirmed that economic opportunity and consumer protection are not competing values—they are mutually reinforcing. This is exactly the kind of accountable governance the Forum has been advocating for, and it sets an important standard for how businesses, state, and local governments can navigate the current political climate.”
Andrew Behar, CEO of As You Sow:
“Verizon’s shareholders applaud the California Public Utilities Commission’s decision. We have analyzed data from over 1,600 companies spanning five years and know that greater workforce diversity leads to financial outperformance. Investors have long asked Verizon to be a leader in this area; this decision will ensure that we build a culture that attracts and retains the best and the brightest employees who can rise through the ranks based on merit without bias. We see this as an example that will raise the bar for Verizon’s competitors and for all public companies.”
Glenn Harris, President of Race Forward:
“At Race Forward, we have always known real change can happen when public institutions have been transformed for equity and are in partnership with community to ensure the policies of corporations and other institutions are inclusive. We commend The California Public Utilities Commission for its win in holding a major, national corporation accountable to its stated commitment on diversity, equity, and inclusion and to federal and state law. This win signals that progress is still possible even in the face of pushback and opposition. We work with members of our Government Alliance on Race and Equity on systemic transformation by building capacity across sectors to advance equity and justice in policies and practices so all people have the opportunity to prosper.
Lisa Graves, Founder and Executive Director of True North Research:
“This is an important win for diversity, equity, and inclusion. California has shown that states can stand up for workers and consumers and resist Trump’s efforts to undermine employees' and customers' rights. More states and companies should follow suit to show they won’t be bullied into abandoning equal opportunity.”
Roberto Thornton, Managing Director of Investments & Impact at Adasina Social Capital:
“Verizon’s agreement with the California Public Utilities Commission to recommit to diversity in supplier sourcing and community training — aptly announced on Martin Luther King Jr.’s birthday — reaffirms a truth we have been amplifying at Adasina Social Capital: diversity, equity, and inclusion (DEI) is not just a moral imperative, but a strategic business asset. California’s response to this matter represents exactly the regulatory oversight we need nationwide. This news is a win for California, a win for Verizon, and a win for the future of DEI.”
Dan Howells, Climate Campaigns Director of Green America:
“The California Public Utility Commission's action shows Verizon - and companies like it - can be held accountable when they don't value the public they serve. Now instead of backtracking on diversity, equity and inclusion, Verizon will move forward with policies that benefit everyone. This sends a message to companies that want to participate in the 4th largest economy in the world: they need to respect the diversity that is the United States.”
