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.
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 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 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.
At first sight, it might appear that the U.S. has forsaken efforts to better outcomes for racial and identity groups historically marginalized. However, some specialists propose that these efforts might continue, perhaps under alternative names that better align with the evolving political environment of a country that has recently elected a leader devoted to opposing “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.
However, just as quickly as these initiatives expanded, a conservative backlash emerged.
Stefan Padfield, the 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 differences.
More recently, critics have intensified their arguments that DEI efforts—originally designed to combat discrimination—are themselves discriminatory, particularly toward white Americans. Training sessions that highlight “white privilege” and systemic racial bias have drawn heavy 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.
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 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 ruling raised questions about the legal basis of corporate DEI policies. In the wake of the decision, Meta notified employees that “the legal and policy landscape surrounding DEI has shifted,” shortly before announcing the end of its own DEI initiatives.
Corporate Retreat: An Issue 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 firms initially adopted DEI efforts to “appear favorable” following the Black Lives Matter movement, rather than from a true dedication 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 opinion on DEI remains divided. A survey by JUST Capital suggests that support for DEI has waned, but support for related issues—such as fair pay—remains strong. Similarly, a 2023 Pew Research Center survey found that a majority (56%) of employed adults still believe that workplace DEI efforts are beneficial.
