In Union County, South Carolina, the cotton mills that once sustained the economy and offered jobs have vanished over time. Today, this area is designated as a “food desert,” indicating that numerous inhabitants reside a considerable distance from the nearest supermarket. Observing this problem, community non-profit leader Elise Ashby initiated a project in 2016. She partnered with local farmers to deliver affordable boxes of fresh fruit and vegetables across the county, which has a demographic where nearly 30% of the population is Black and approximately 25% are living below the poverty line.
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.”
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.
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 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 almost 200 civil rights staff on paid leave, and Trump replaced the nation’s top military general—a Black man—after his defense secretary had previously implied he should be dismissed due to his ties 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 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 embrace “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 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.
Nonetheless, as rapidly 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 by racial and gender categories.
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 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 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.
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 came in June 2023, when the Supreme Court decreed that race could no longer be a consideration in university admissions, effectively dismantling decades of affirmative action policies.
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 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 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.
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.
