DEI continues to adapt despite opposition in the US

In Union County, South Carolina, the formerly prosperous cotton mills that once employed numerous residents have vanished. Today, the county is labeled a «food desert,» indicating that a significant portion of its inhabitants reside at a distance from the closest supermarket. Addressing this challenge, community non-profit leader Elise Ashby initiated efforts in 2016, working alongside farmers to deliver affordable boxes of fresh fruits and vegetables across the county, where roughly 30% of the citizens are Black and nearly 25% experience poverty.

At first, Ms. Ashby financed the project using her own savings and minor grants. But in 2023, her work gained substantial support as the Walmart Foundation—the charitable arm of one of the country’s largest companies—awarded her organization more than $100,000 (£80,000). This funding was included in a larger $1.5 million initiative designed to assist «community-based non-profits led by people of color.»

«It brought me to tears,» she admitted. «It was one of those moments where you realize that someone truly sees and values your work.»

Only two years ago, initiatives like this were extensively supported by leading businesses throughout the U.S., as the nation came to terms with systemic racism following the 2020 killing of George Floyd, a Black man who lost his life under the knee of a police officer in Minneapolis.

However, many of these corporations are now retreating from such commitments. In November, Walmart announced the discontinuation of some diversity initiatives, including plans to shut down its Center for Racial Equity, which had been instrumental in funding Ms. Ashby’s grant.

Companies like Meta, Google, Goldman Sachs, and McDonald’s have taken similar steps, indicating a wider corporate retreat from diversity, equity, and inclusion (DEI) programs.

This change signifies a significant cultural transition, spurred partially by concerns over legal challenges, regulatory oversight, and social media backlash—pressures intensified by the new U.S. president.

Since assuming office in January, Donald Trump has vigorously sought to dismantle DEI initiatives, promoting a return to «merit-based opportunity» in the United States. He has directed the federal government to abolish DEI programs and initiate investigations into private companies and academic institutions suspected of participating in «unlawful DEI practices.»

During the initial months of his second term, the Department of Veterans Affairs shut down its DEI offices, the Environmental Protection Agency put nearly 200 civil rights staff on paid leave, and Trump ousted the nation’s top military general—a Black individual—after the defense secretary had earlier recommended his removal because of his connection to «woke» DEI strategies.

At first glance, it may seem that the U.S. has abandoned efforts to improve outcomes for historically marginalized racial and identity groups. However, some experts suggest these initiatives may persist, albeit under different names that align more closely with the shifting political climate of a nation that has just elected a leader committed to combating «woke» policies.

The Roots of the Backlash

DEI-style programs first gained momentum in the U.S. during the 1960s in response to the civil rights movement, which sought to expand and protect the rights of Black Americans.

Originally termed as «affirmative action» and «equal opportunity,» these initiatives were designed to address the enduring effects of slavery and the institutionalized discrimination imposed by Jim Crow laws.

As social justice movements evolved to encompass women’s rights, LGBTQ+ advocacy, and racial and ethnic diversity, the terminology surrounding these efforts broadened to include «diversity,» «equity,» and «inclusion.»

Within corporations and government agencies, DEI efforts largely focused on hiring policies that framed diversity as an economic advantage. Advocates argue that such programs address disparities across various communities, though much of the emphasis has historically been on racial equity.

The push for DEI gained momentum in 2020 during the Black Lives Matter protests and escalating calls for social change. Walmart, for example, committed $100 million over five years to create its Center for Racial Equity. Wells Fargo hired its inaugural chief diversity officer, while firms like Google and Nike already had similar leadership positions established. After these developments, S&P 100 companies generated more than 300,000 new jobs, with 94% filled by people of color, as reported by Bloomberg.

Nonetheless, as rapidly as these initiatives grew, a conservative backlash arose.

Stefan Padfield, executive director of the conservative think tank National Center for Public Policy Research, contends that DEI programs inherently separate individuals by racial and gender categories.

In recent times, critics have amplified claims that DEI efforts—initially intended to fight discrimination—are themselves discriminatory, especially against white Americans. Training workshops that emphasize «white privilege» and systemic racial bias have faced significant criticism.

The roots of this opposition stem from conservative resistance to critical race theory (CRT), an academic framework that suggests racism is deeply embedded in American society. Over time, campaigns against CRT in schools evolved into broader efforts to penalize «woke corporations.»

Social media accounts like End Wokeness and conservative figures such as Robby Starbuck have capitalized on this sentiment, targeting companies for their DEI initiatives. Starbuck has claimed responsibility for policy shifts at companies like Ford, John Deere, and Harley-Davidson after exposing their DEI programs to his online followers.

One of the most visible victories for this movement came in spring 2023, when Bud Light faced widespread backlash for partnering with transgender influencer Dylan Mulvaney. Calls to boycott the brand and its parent company, Anheuser-Busch, resulted in a 28% decline in Bud Light sales, according to a Harvard Business Review analysis.

Another significant milestone came in June 2023, when the Supreme Court decreed that race could no longer be a consideration in university admissions, effectively dismantling decades of affirmative action policies.

This decision cast doubt on the legal standing of corporate DEI policies. Following the ruling, Meta informed employees that «the legal and policy landscape surrounding DEI has shifted,» just before announcing the cancellation of its own DEI programs.

Corporate Retreat: An Issue of Authenticity

The rapid rollback of DEI initiatives among major corporations raises questions about the sincerity of their commitments to workforce diversity.

Martin Whittaker, CEO of JUST Capital—a non-profit that surveys Americans on workplace issues—believes that many companies initially embraced DEI efforts to «look good» in the wake of the Black Lives Matter movement, rather than out of genuine commitment to change.

Nonetheless, not every company is succumbing to political and legal pressure. A report by the conservative think tank Heritage Foundation remarked that although DEI programs seem to be waning, «nearly all» Fortune 500 companies still incorporate DEI commitments within their official statements. Moreover, Apple shareholders recently voted to uphold the company’s diversity efforts.

Public sentiment on DEI is polarized. A survey by JUST Capital indicates that backing for DEI has decreased, yet support for associated matters—like equitable pay—remains robust. Likewise, a 2023 Pew Research Center survey revealed that a majority (56%) of working adults still perceive workplace DEI initiatives as advantageous.