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 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.”
“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.”
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.
Nonetheless, numerous corporations are now withdrawing from these pledges. In November, Walmart revealed the cessation of certain diversity programs, which includes the closure of its Center for Racial Equity, a key player in funding the grant received by Ms. Ashby.
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 transition signifies a significant cultural shift, partly fueled by concerns over potential legal issues, regulatory examination, and negative reactions on social media—pressures intensified by the current 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 expanded to include women’s rights, LGBTQ+ advocacy, and racial and ethnic diversity, the language describing these efforts widened to incorporate “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 gained momentum in 2020 during the Black Lives Matter demonstrations and rising calls for societal reform. 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 companies like Google and Nike already maintained analogous leadership positions. After these developments, S&P 100 companies generated more than 300,000 new jobs, with 94% allocated to people of color, based on Bloomberg’s findings.
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 based on racial and gender lines.
Recently, detractors have amplified their assertions that DEI initiatives—originally crafted to fight discrimination—are themselves prejudiced, especially against white Americans. Training programs that emphasize “white privilege” and systemic racial prejudice have faced significant criticism.
The basis of this opposition originates from conservative pushback against critical race theory (CRT), an academic model proposing that racism is deeply ingrained in American society. Over time, campaigns against CRT in educational institutions evolved into wider attempts to target “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 occurred in June 2023, when the Supreme Court decided that race could no longer be considered in university admissions, effectively ending 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 Withdrawal: A Matter 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.
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.