In Union County, South Carolina, the cotton mills that once supplied many jobs have vanished. Now, the county is labeled as a “food desert,” indicating residents are often distant from grocery stores. Acknowledging this challenge, local non-profit leader Elise Ashby initiated a project in 2016, working with farmers to deliver affordable boxes of fresh fruits and vegetables across the area, where around 30% of the population is Black, and about 25% face poverty.
Initially, Ms. Ashby funded the initiative with her personal savings and small grants. However, in 2023, her efforts received a significant boost when the Walmart Foundation—the philanthropic branch of one of the nation’s largest corporations—granted her organization over $100,000 (£80,000). This funding was part of a broader $1.5 million initiative aimed at supporting “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.
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.
Firms like Meta, Google, Goldman Sachs, and McDonald’s have undertaken comparable actions, highlighting a more extensive corporate retraction from diversity, equity, and inclusion (DEI) programs.
This transition signifies a significant cultural change, influenced partly by concerns about legal disputes, regulatory oversight, and backlash on social media—pressures intensified by the current 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 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 might appear that the U.S. has given up on improving outcomes for historically marginalized racial and identity groups. Yet, some experts propose that these programs may continue, though perhaps rebranded to match the evolving political environment of a country that has recently chosen a leader focused on contesting “woke” policies.
The Roots of the Backlash
Initiatives similar to DEI first gained traction in the U.S. during the 1960s, in reaction to the civil rights movement, which aimed to extend and safeguard 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.”
Within businesses and government institutions, DEI efforts primarily targeted hiring strategies that portrayed diversity as a financial benefit. Supporters contend that these programs tackle inequalities across different communities, though a significant focus has traditionally 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.
However, just as quickly as these initiatives expanded, a conservative backlash emerged.
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.
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.
One prominent success for this movement occurred in spring 2023, when Bud Light encountered significant backlash for collaborating with transgender influencer Dylan Mulvaney. Boycott calls targeting the brand and its parent firm, Anheuser-Busch, led to a 28% drop in Bud Light sales, according to an analysis by Harvard Business Review.
Another major turning point arrived in June 2023, when the Supreme Court ruled that race could no longer be a factor in university admissions, effectively dismantling decades of affirmative action policies.
This decision raised questions about the legal foundation of corporate DEI policies. After the ruling, Meta advised employees that “the legal and policy landscape surrounding DEI has shifted,” shortly before revealing the termination of its own DEI programs.
Corporate Withdrawal: A Matter 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.
Nonetheless, not all companies are yielding to political and legal pressure. A report by the conservative think tank Heritage Foundation noted that while DEI programs appear to be in decline, “nearly all” Fortune 500 companies still include DEI commitments somewhere in their official statements. Additionally, Apple shareholders recently voted to maintain 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.