Are companies abandoning DEI initiatives under pressure from Trump and activists?
Shreedhar Rathi | Feb 04, 2025, 09:14 IST
( Image credit : AP )
Many large American companies, including Walmart and Amazon, have scaled back their DEI programs amidst political and legal pressures, while corporations like Goldman Sachs and Microsoft defend their initiatives as crucial for innovation and inclusivity. The divide reflects an ongoing national debate on the role of DEI in businesses.
Over the past year, many large American companies have scaled back their Diversity, Equity, and Inclusion (DEI) programs due to growing pressure from activists, legal concerns, and customer backlash.
Several major corporations, including Walmart, McDonald’s, Amazon, Ford, and Lowe’s, have reconsidered their DEI initiatives in response to a cultural shift and increased scrutiny from conservative groups and legal experts.
This shift has been partly influenced by President Donald Trump’s commitment to rolling back federal DEI programs. According to the New York Post, on his first day back in office, Trump signed an executive order eliminating DEI offices and programs within the federal workforce, arguing that these initiatives promote division.
Trump has also strongly opposed the expansion of DEI initiatives, notably criticizing the Federal Aviation Administration (FAA) following a deadly aviation crash that claimed 64 lives. Although no clear evidence linked DEI programs to the crash, Trump used the incident to reinforce his opposition to DEI policies in federal agencies.
Despite the trend of companies moving away from DEI initiatives, some corporations continue to support these programs and face significant pressure to maintain them.
For example, Apple has urged its shareholders to reject proposals calling for the elimination of its DEI programs, arguing that such measures would be detrimental to the company’s success. Similarly, Costco’s board of directors opposed a proposal requiring a risk report on its DEI efforts, with shareholders overwhelmingly voting against it.
Goldman Sachs and JPMorgan Chase have also defended their commitment to DEI. In response to shareholder proposals targeting DEI policies, Goldman Sachs emphasized that diversity fosters innovation and business success. JPMorgan Chase CEO Jamie Dimon echoed this sentiment, asserting that DEI initiatives are crucial for engaging with diverse communities, including Black, Hispanic, and LGBT groups.
Microsoft has also doubled down on its commitment to DEI, with Chief Diversity Officer Lindsay-Rae McIntyre reaffirming that these initiatives are essential for building a workforce capable of developing products and services for a global market.
The divide between companies scaling back DEI programs and those maintaining them highlights the ongoing national debate about the role of DEI in business. While some argue that these initiatives are necessary for inclusivity and innovation, others view them as politically charged and risky.
As President Trump continues to challenge DEI initiatives and advocate for alternative policies, it remains to be seen whether more companies will retreat from DEI programs or if those that have stood firm will continue to push forward with their diversity and inclusion efforts.
Several major corporations, including Walmart, McDonald’s, Amazon, Ford, and Lowe’s, have reconsidered their DEI initiatives in response to a cultural shift and increased scrutiny from conservative groups and legal experts.
This shift has been partly influenced by President Donald Trump’s commitment to rolling back federal DEI programs. According to the New York Post, on his first day back in office, Trump signed an executive order eliminating DEI offices and programs within the federal workforce, arguing that these initiatives promote division.
Trump has also strongly opposed the expansion of DEI initiatives, notably criticizing the Federal Aviation Administration (FAA) following a deadly aviation crash that claimed 64 lives. Although no clear evidence linked DEI programs to the crash, Trump used the incident to reinforce his opposition to DEI policies in federal agencies.
Despite the trend of companies moving away from DEI initiatives, some corporations continue to support these programs and face significant pressure to maintain them.
For example, Apple has urged its shareholders to reject proposals calling for the elimination of its DEI programs, arguing that such measures would be detrimental to the company’s success. Similarly, Costco’s board of directors opposed a proposal requiring a risk report on its DEI efforts, with shareholders overwhelmingly voting against it.
Goldman Sachs and JPMorgan Chase have also defended their commitment to DEI. In response to shareholder proposals targeting DEI policies, Goldman Sachs emphasized that diversity fosters innovation and business success. JPMorgan Chase CEO Jamie Dimon echoed this sentiment, asserting that DEI initiatives are crucial for engaging with diverse communities, including Black, Hispanic, and LGBT groups.
Microsoft has also doubled down on its commitment to DEI, with Chief Diversity Officer Lindsay-Rae McIntyre reaffirming that these initiatives are essential for building a workforce capable of developing products and services for a global market.
The divide between companies scaling back DEI programs and those maintaining them highlights the ongoing national debate about the role of DEI in business. While some argue that these initiatives are necessary for inclusivity and innovation, others view them as politically charged and risky.
As President Trump continues to challenge DEI initiatives and advocate for alternative policies, it remains to be seen whether more companies will retreat from DEI programs or if those that have stood firm will continue to push forward with their diversity and inclusion efforts.