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.”
“It brought me to tears,” she confessed. “It was one of those instances when you understand that someone genuinely recognizes and appreciates your efforts.”
Only two years prior, initiatives like this received widespread support from leading corporations throughout the United States, as the nation grappled with systemic racism after the 2020 murder of George Floyd, a Black individual who lost his life beneath the knee of a police officer in Minneapolis.
However, many of these corporations are now retreating from such commitments. In November, Walmart announced the discontinuation of some diversity initiatives, including plans to shut down its Center for Racial Equity, which had been instrumental in funding 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 shift marks a notable cultural change, driven in part by fears of legal challenges, regulatory scrutiny, and social media backlash—pressures exacerbated by the new 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 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
Programs resembling DEI first gained traction in the U.S. during the 1960s as a response to the civil rights movement, which aimed to broaden and safeguard 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 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.
Nonetheless, as swiftly as these initiatives grew, a conservative pushback arose.
Stefan Padfield, 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 lines.
Recently, detractors have amplified their assertions that DEI initiatives—originally crafted to fight discrimination—are themselves prejudiced, especially against white Americans. Training programs that emphasize “white privilege” and systemic racial prejudice have faced significant criticism.
The roots of this opposition stem from conservative resistance to critical race theory (CRT), an academic framework that suggests racism is deeply embedded in American society. Over time, campaigns against CRT in schools evolved into broader efforts to penalize “woke corporations.”
Social media accounts such as End Wokeness and conservative personalities like Robby Starbuck have leveraged this sentiment, focusing on companies for their DEI efforts. Starbuck has taken credit for influencing policy changes at firms like Ford, John Deere, and Harley-Davidson after revealing their DEI programs to his online audience.
One prominent success for this movement occurred in spring 2023, when Bud Light encountered significant backlash for collaborating with transgender influencer Dylan Mulvaney. Boycott calls targeting the brand and its parent firm, Anheuser-Busch, led to a 28% drop in Bud Light sales, according to an analysis by Harvard Business Review.
Another significant milestone occurred in June 2023, when the Supreme Court decided that race could no longer be considered in university admissions, effectively ending decades of affirmative action policies.
This decision raised questions about the legal foundation of corporate DEI policies. After the ruling, Meta advised employees that “the legal and policy landscape surrounding DEI has shifted,” shortly before revealing the termination of its own DEI programs.
Corporate Withdrawal: A Matter 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.
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 remains split. A survey by JUST Capital indicates that backing for DEI has diminished, yet support for related topics—such as equitable pay—remains robust. Likewise, a 2023 Pew Research Center survey discovered that a majority (56%) of working adults continue to perceive workplace DEI efforts as advantageous.
