DEI’s Prospects in the Face of US Opposition

In Union County, South Carolina, the cotton mills that once sustained the economy and offered jobs have vanished over time. Today, this area is designated as a “food desert,” indicating that numerous inhabitants reside a considerable distance from the nearest supermarket. Observing this problem, community non-profit leader Elise Ashby initiated a project in 2016. She partnered with local farmers to deliver affordable boxes of fresh fruit and vegetables across the county, which has a demographic where nearly 30% of the population is Black and approximately 25% are living below the poverty line.

At first, Ms. Ashby supported the project using her own savings and modest grants. Nonetheless, in 2023, her work gained considerable momentum when the Walmart Foundation—the charitable arm of a major national corporation—awarded her organization more than $100,000 (£80,000). This financial backing was included in a larger $1.5 million program designed to assist “community-focused non-profits led by individuals 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.”

A mere two years ago, initiatives like this received extensive support from large companies throughout the U.S., as the nation confronted systemic racism following the 2020 murder of George Floyd, a Black man who lost his life beneath the knee of a Minneapolis police officer.

Yet, several of these companies are now withdrawing from those pledges. In November, Walmart revealed it would end certain diversity programs, including the closure of its Center for Racial Equity, which had played a key role in providing Ms. Ashby’s grant.

Businesses like Meta, Google, Goldman Sachs, and McDonald’s have taken comparable actions, indicating a wider corporate retreat from diversity, equity, and inclusion (DEI) efforts.

This shift marks a notable cultural change, driven in part by fears of legal challenges, regulatory scrutiny, and social media backlash—pressures exacerbated by the new U.S. president.

Since assuming office in January, Donald Trump has vigorously attempted to dismantle DEI programs, promoting a revival of “merit-based opportunity” within the United States. He has directed the federal government to abolish DEI initiatives and commence inquiries into private companies and educational establishments suspected of participating in “illegal 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 almost 200 civil rights staff on paid leave, and Trump replaced the nation’s top military general—a Black man—after his defense secretary had previously implied he should be dismissed due to his ties with “woke” DEI policies.

At first sight, it might appear that the U.S. has forsaken efforts to better outcomes for racial and identity groups historically marginalized. However, some specialists propose that these efforts might continue, perhaps under alternative names that better align with the evolving political environment of a country that has recently elected a leader devoted to opposing “woke” policies.

The Origins 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 described with terms like “affirmative action” and “equal opportunity,” these initiatives were designed to address the enduring effects of slavery and the systemic discrimination perpetuated under Jim Crow laws.

As social justice movements expanded to include women’s rights, LGBTQ+ advocacy, and racial and ethnic diversity, the language describing these efforts widened to embrace “diversity,” “equity,” and “inclusion.”

In corporations and government bodies, DEI initiatives primarily concentrated on recruitment strategies that positioned diversity as a financial benefit. Proponents contend that these programs tackle inequalities across different communities, although the primary focus has traditionally been on racial equity.

The drive for DEI escalated in 2020 during the Black Lives Matter demonstrations and rising calls for societal change. For example, Walmart committed $100 million over five years to create its Center for Racial Equity. Wells Fargo named its first chief diversity officer, while firms like Google and Nike already had similar positions established. As a result of these developments, S&P 100 companies generated over 300,000 new jobs, with 94% of them awarded to people of color, per 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, argues that DEI programs fundamentally divide people along racial and gender lines.

More recently, critics have amplified their claims that DEI initiatives—initially intended to fight discrimination—are in themselves discriminatory, especially against white Americans. Sessions focusing on “white privilege” and systemic racial bias have faced significant criticism.

The foundation of this opposition originates from conservative pushback against critical race theory (CRT), an academic concept positing that racism is intricately woven into American society. Gradually, efforts opposing CRT in education broadened into wider campaigns aiming to penalize “woke corporations.”

Online platforms like End Wokeness and conservative personalities such as Robby Starbuck have leveraged this feeling, directing attention to companies for their DEI efforts. Starbuck has taken credit for changes in policy at firms like Ford, John Deere, and Harley-Davidson after revealing their DEI programs to his audience on social media.

A major and visible achievement for this movement occurred in spring 2023, when Bud Light encountered significant backlash for teaming up with transgender influencer Dylan Mulvaney. The resulting calls to boycott the brand and its parent company, Anheuser-Busch, led to a 28% drop 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 ruling raised questions about the legal basis of corporate DEI policies. In the wake of the decision, Meta notified employees that “the legal and policy landscape surrounding DEI has shifted,” shortly before announcing the end of its own DEI initiatives.

Corporate Retreat: A Question of Authenticity

The swift retreat of DEI programs among prominent corporations raises questions about the genuineness of their dedication to workforce diversity.

Martin Whittaker, CEO of JUST Capital—a non-profit that surveys Americans on workplace matters—holds the view that many businesses initially adopted DEI initiatives to “appear favorable” following the Black Lives Matter movement, rather than from an authentic dedication to transformation.

Nevertheless, not all corporations are succumbing to political and legal pressures. A report by the conservative think tank Heritage Foundation indicated that although DEI programs seem to be diminishing, “nearly all” Fortune 500 firms still incorporate DEI pledges within their official declarations. Furthermore, Apple shareholders recently voted to preserve the company’s diversity initiatives.

Public sentiment on DEI is split. A survey by JUST Capital indicates that backing for DEI has diminished, but support for related matters—such as equitable pay—remains robust. In parallel, a 2023 Pew Research Center survey discovered that a majority (56%) of working adults still perceive workplace DEI efforts as advantageous.