Major U.S. Companies Scale Back Diversity Initiatives Amid Political Backlash

Corporate America reassesses DEI strategies in light of conservative activism and executive orders / AP Photo/Ellen Schmidt, File

In recent months, several prominent U.S. companies have begun to pull back on their diversity, equity, and inclusion (DEI) initiatives that gained momentum following the nationwide protests sparked by the police killing of George Floyd in 2020. This shift comes as a response to a coordinated campaign by conservative activists who have challenged workplace diversity programs through legal avenues and social media, along with recent executive orders from President Donald Trump aimed at dismantling DEI policies across both government and private sectors.

DEI programs are designed to address systemic barriers faced by historically marginalized groups in various fields. However, critics argue that some of these initiatives can lead to discriminatory practices by prioritizing candidates based on characteristics such as race, gender, and sexual orientation. As a result, corporate sponsorships, employee-led affinity groups, and diversity-focused hiring goals have become targets for these critics.

PepsiCo's Change in Focus
PepsiCo has announced the cessation of certain DEI initiatives, even as its competitor Coca-Cola continues to support its diversity efforts. In a memo to employees, CEO Ramon Laguarta stated that the company would no longer pursue specific goals for minority representation within its management or supplier network. Instead, PepsiCo will direct its sponsorship efforts toward events and groups that foster business growth, while its chief diversity officer will transition to a broader role emphasizing employee engagement and leadership development.

Goldman Sachs Adjusts Board Diversity Policy
Goldman Sachs has confirmed the discontinuation of its requirement for IPO clients to include women and minority group members on their boards. The firm indicated that the decision was influenced by legal developments surrounding board diversity mandates. While Goldman Sachs will no longer enforce this formal policy, it remains committed to promoting diverse perspectives and backgrounds in board compositions through a placement service that connects clients with diverse candidates.

Google Reassesses Leadership Representation Goals
Google has rescinded its 2020 goal to increase representation of underrepresented groups in its leadership by 30% over five years. The company signaled potential changes in its DEI approach in response to Trump’s executive order, which aimed to prohibit federal contractors from engaging in discriminatory DEI practices. Additionally, Google’s annual 10-K report has omitted language affirming its commitment to making DEI integral to its operations.

Target Discontinues Key DEI Programs
Target has modified its “Belonging at the Bullseye” strategy, including the termination of programs designed to support Black employees and promote Black-owned businesses. The retailer has concluded its DEI goals established in previous three-year cycles, which aimed to enhance the hiring and promotion of diverse candidates and recruit a more varied supplier base. Furthermore, Target will cease participation in surveys that evaluate the effectiveness of its diversity initiatives, including the Human Rights Campaign’s annual index.

Meta Platforms Shifts DEI Strategy
Meta Platforms, the parent company of Facebook and Instagram, has announced the discontinuation of its DEI program, which encompassed policies for hiring and vendor selection. This change follows a review prompted by the Supreme Court’s ruling that overturned affirmative action in higher education. Meta will focus on applying fair practices to mitigate bias across all backgrounds rather than maintaining a dedicated DEI team.

Amazon's DEI Program Reevaluation
Amazon has stated that it will pause some of its DEI initiatives, although specific programs affected were not disclosed. In a memo, senior HR executive Candi Castleberry noted that the company has been working to phase out outdated programs and aims to complete this process by the end of 2024. Amazon plans to concentrate on initiatives with proven outcomes to cultivate a genuinely inclusive culture.

McDonald’s Ends Specific Diversity Goals
McDonald’s recently announced the discontinuation of some diversity practices that were implemented four years ago. The company will no longer pursue particular goals for increasing diversity at senior leadership levels or require suppliers to engage in diversity training. McDonald’s will also pause participation in external surveys, although it asserts its ongoing commitment to fostering an inclusive workforce.

Walmart’s Decision on Racial Equity Center
Walmart confirmed it will not renew its commitment to a racial equity center established in response to George Floyd's death. The retailer will stop participating in the Human Rights Campaign’s Corporate Equality Index and will refrain from using race and gender as criteria for supplier contracts. Additionally, Walmart will not gather demographic data for financing eligibility assessments.

Ford, Lowe’s, and Others Follow Suit
Ford has halted its participation in the HRC’s Corporate Equality Index and reassessed its DEI policies after a year-long review. Lowe’s has combined its employee resource groups into a single organization and also exited the HRC index, along with ceasing sponsorship of external events not directly related to its business.

Companies like Harley-Davidson, Brown-Forman, John Deere, and Tractor Supply have also announced significant changes to their DEI programs, indicating a broader trend within corporate America to reassess or retreat from previously established diversity initiatives. These shifts reflect the influence of conservative activism and changing political landscapes on corporate policies, leading to a significant re-evaluation of how diversity and inclusion are approached in the workplace.