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.
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.”
“It brought me to tears,” she confessed. “It was one of those instances when you understand that someone genuinely recognizes and appreciates your efforts.”
Only two years prior, initiatives like this received widespread support from leading corporations throughout the United States, as the nation grappled with systemic racism after the 2020 murder of George Floyd, a Black individual who lost his life beneath 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.
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 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 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.
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
Programs resembling DEI first gained traction in the U.S. during the 1960s as a response to the civil rights movement, which aimed to broaden and safeguard 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 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 based on racial and gender lines.
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 personalities like Robby Starbuck have leveraged this sentiment, focusing on corporations for their DEI efforts. Starbuck has asserted accountability for policy changes at firms like Ford, John Deere, and Harley-Davidson after highlighting their DEI programs to his digital audiences.
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 Retreat: A Question of Authenticity
The swift reversal of DEI initiatives among large corporations prompts questions regarding the genuineness of their dedication 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.
