The evolving story of DEI in America

In Union County, South Carolina, the once-thriving cotton mills that provided livelihoods for many have long disappeared. The county is now classified as a “food desert,” meaning that many of its residents live far from the nearest grocery store. Recognizing this issue, local non-profit leader Elise Ashby took action in 2016, collaborating with farmers to distribute discounted boxes of fresh produce throughout the county, where approximately 30% of the population is Black and around 25% live in poverty.

Ms. Ashby originally financed the project using her own savings and minor grants. In 2023, her work saw a substantial advancement when the Walmart Foundation—the charitable arm of a leading national corporation—awarded her organization a grant exceeding $100,000 (£80,000). This financial support was included in a larger $1.5 million program designed to assist “community-based non-profits spearheaded by people of color.”

“I was moved to tears,” she confessed. “It was one of those instances when you understand that someone genuinely recognizes and appreciates what you do.”

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.

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 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 taking office in January, Donald Trump has actively sought to dismantle DEI programs, pushing for a shift back to “merit-based opportunity” in the U.S. He has directed the federal government to eliminate DEI initiatives and begin investigations into private companies and academic institutions suspected of “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 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.

Initially, it might appear that the U.S. has forsaken efforts to enhance outcomes for historically marginalized racial and identity groups. However, some experts propose that these initiatives could continue, though under different titles that resonate more closely with the evolving political landscape of a nation that has just chosen a leader determined to oppose “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 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 grew to include women’s rights, LGBTQ+ advocacy, and racial and ethnic diversity, the language associated with these endeavors expanded to cover “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 swiftly as these initiatives grew, a conservative pushback 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.

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.

One of the most prominent triumphs for this movement took place in spring 2023, when Bud Light encountered significant backlash for collaborating with transgender influencer Dylan Mulvaney. Demands to boycott the brand and its parent company, Anheuser-Busch, led to a 28% drop in Bud Light sales, based on an analysis by Harvard Business Review.

Another significant juncture came in June 2023, when the Supreme Court decided that race could no longer be a consideration in university admissions, effectively overturning decades of affirmative action practices.

This verdict questioned the legality of corporate DEI policies. In the wake of the ruling, Meta notified its employees that “the legal and policy landscape surrounding DEI has shifted,” shortly before revealing the discontinuation of its own DEI programs.

Corporate Retreat: An Issue 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 conducting surveys on workplace issues—suggests that numerous companies initially adopted DEI initiatives to “appear favorable” following the Black Lives Matter movement, rather than from an authentic commitment to change.

Nevertheless, not all businesses are succumbing to political and legal pressure. A report by the conservative think tank Heritage Foundation pointed out that although DEI programs seem to be decreasing, “nearly all” Fortune 500 companies continue to incorporate DEI commitments in their official statements. Moreover, Apple shareholders recently chose 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.