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.”
“It moved me to tears,” she confessed. “It was one of those instances where you understand that someone genuinely recognizes and appreciates your efforts.”
Just two years ago, programs like this were widely backed by major corporations across the U.S., as the country reckoned with systemic racism following the 2020 murder of George Floyd, a Black man who died under 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.
Companies such as Meta, Google, Goldman Sachs, and McDonald’s have all made similar moves, reflecting a broader corporate pullback from diversity, equity, and inclusion (DEI) initiatives.
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 aggressively worked to dismantle DEI programs, advocating for a return to “merit-based opportunity” in America. He has ordered the federal government to eliminate DEI initiatives and launch investigations into private companies and academic institutions suspected of engaging in “illegal DEI practices.”
Within the early months of his second term, the Department of Veterans Affairs closed its DEI offices, the Environmental Protection Agency placed nearly 200 civil rights employees on paid leave, and Trump dismissed the country’s top military general—a Black man—after his defense secretary previously suggested he should be removed due to his association with “woke” DEI policies.
At first glance, it may seem that the U.S. has abandoned efforts to improve outcomes for historically marginalized racial and identity groups. However, some experts suggest these initiatives may persist, albeit under different names that align more closely with the shifting political climate of a nation that has just elected a leader committed to combating “woke” policies.
The Origins 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.”
In the realm of corporations and government bodies, DEI initiatives primarily concentrated on recruitment practices, portraying diversity as a financial benefit. Proponents claim that these programs tackle inequities across different communities, even though the 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.
However, as swiftly as these initiatives grew, a conservative backlash 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.
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 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.”
Social media accounts such as End Wokeness and conservative personalities like Robby Starbuck have leveraged this sentiment, focusing on companies for their DEI efforts. Starbuck has taken credit for influencing policy changes at firms like Ford, John Deere, and Harley-Davidson after revealing their DEI programs to his online audience.
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 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 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 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 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 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 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.
