3466.1 Assessment
Research Question (Clear, unambiguous) "What factors prompt some universities to invigorate diversity hiring practices, while others do not? What forces, internally or externally, top-down or bottom-up, drive changes in this aspect, if there is change at all? What kinds of institutional environment, in the higher education setting, are more conducive to a more diversified faculty body?"  Interesting questions, but too broad and wide ranging.  You need to focus.  You need to clarify "diversity."  You need to think about what kinds of comparisons you are considering (e.g., over time, across different institutions of the same kind, across groups of higher education institutions categorized in some way).
Relevant Literature The description of literature to review is sensible.
Causal Interpretations (clear, all parts defined, mechanisms, controls, plausible) The two suggested causes are both compositional: that a diverse student body creates a need for a diverse faculty or that a diverse faculty induces hiring for diversity.  Both of these are plausible, but they are limited to the idea that diversity stimulates diversity.
Data (variables, sample, comparison) The IPEDS data is a reasonable choice for examining possible patterns of diversity leading to greater diversity.  How you would obtain and add data on diversity initiatives is much less clear.
Research Value The general discussion of the research value is fine.  A full proposal also wants to consider how the project is providing new knowledge.
Overall While parts are a bit tricky and the outline a bit uneven, this seems an appropriate and plausible project for tracing and comparing diversity; the part about diversity initiatives seems less likely.