In Union County, South Carolina, the cotton mills that once supplied many jobs have vanished. Now, the county is labeled as a “food desert,” indicating residents are often distant from grocery stores. Acknowledging this challenge, local non-profit leader Elise Ashby initiated a project in 2016, working with farmers to deliver affordable boxes of fresh fruits and vegetables across the area, where around 30% of the population is Black, and about 25% face poverty.
Initially, Ms. Ashby funded the initiative with her personal savings and small grants. However, in 2023, her efforts received a significant boost when the Walmart Foundation—the philanthropic branch of one of the nation’s largest corporations—granted her organization over $100,000 (£80,000). This funding was part of a broader $1.5 million initiative aimed at supporting “community-based non-profits led by people of color.”
“It brought me to tears,” she admitted. “It was one of those moments where you realize that someone truly sees and values your work.”
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.
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 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 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.
Initially, it might appear that the U.S. has forsaken efforts to enhance outcomes for historically marginalized racial and identity groups. However, some experts propose that these initiatives could continue, though under different titles that resonate more closely with the evolving political landscape of a nation that has just chosen a leader determined to oppose “woke” policies.
The Roots of the Backlash
Programs modeled after DEI initially gained traction in the United States during the 1960s, as a reaction to the civil rights movement, which aimed to enhance and safeguard the rights of Black Americans.
Originally described through terms like “affirmative action” and “equal opportunity,” these programs sought to address the enduring impacts of slavery and the institutional discrimination enforced 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 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 escalated in 2020 during the Black Lives Matter demonstrations and rising calls for societal change. 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 firms like Google and Nike already had similar positions established. As a result of these developments, S&P 100 companies generated over 300,000 new jobs, with 94% of them awarded to people of color, per Bloomberg.
However, just as quickly as these initiatives expanded, a conservative backlash emerged.
Stefan Padfield, executive director of the conservative think tank National Center for Public Policy Research, argues that DEI programs fundamentally divide people along racial and gender lines.
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 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.”
Social media accounts like End Wokeness and conservative figures such as Robby Starbuck have capitalized on this sentiment, targeting companies for their DEI initiatives. Starbuck has claimed responsibility for policy shifts at companies like Ford, John Deere, and Harley-Davidson after exposing their DEI programs to his online followers.
One of the most visible victories for this movement came in spring 2023, when Bud Light faced widespread backlash for partnering with transgender influencer Dylan Mulvaney. Calls to boycott the brand and its parent company, Anheuser-Busch, resulted in a 28% decline 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 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 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 companies initially embraced DEI efforts to “look good” in the wake of the Black Lives Matter movement, rather than out of genuine 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.
