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.
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.
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.
Businesses like Meta, Google, Goldman Sachs, and McDonald’s have taken comparable actions, indicating a wider corporate retreat from diversity, equity, and inclusion (DEI) efforts.
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 taking office in January, Donald Trump has aggressively worked to dismantle DEI programs, advocating for a return to “merit-based opportunity” in America. He has ordered the federal government to eliminate DEI initiatives and launch investigations into private companies and academic institutions suspected of engaging in “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 nearly 200 civil rights staff on paid leave, and Trump ousted the nation’s top military general—a Black individual—after the defense secretary had earlier recommended his removal because of his connection to “woke” DEI strategies.
At first glance, it might appear that the U.S. has given up on improving outcomes for historically marginalized racial and identity groups. Yet, some experts propose that these programs may continue, though perhaps rebranded to match the evolving political environment of a country that has recently chosen a leader focused on contesting “woke” policies.
The Roots of the Backlash
Initiatives similar to DEI first gained traction in the U.S. during the 1960s, in reaction to the civil rights movement, which aimed to extend and safeguard the rights of Black Americans.
Initially framed under terms such as “affirmative action” and “equal opportunity,” these initiatives aimed to counteract the long-standing consequences of slavery and the systemic discrimination enforced under Jim Crow laws.
As social justice movements evolved to encompass women’s rights, LGBTQ+ advocacy, and racial and ethnic diversity, the terminology surrounding these efforts broadened to include “diversity,” “equity,” and “inclusion.”
Within corporations and government agencies, DEI efforts largely focused on hiring policies that framed diversity as an economic advantage. Advocates argue that such programs address disparities across various communities, though much of the emphasis has historically been on racial equity.
The push for DEI surged in 2020 amid the Black Lives Matter protests and increasing demands for social change. Walmart, for instance, pledged $100 million over five years to establish its Center for Racial Equity. Wells Fargo appointed its first chief diversity officer, while companies like Google and Nike already had similar leadership roles in place. Following these changes, S&P 100 companies created over 300,000 new jobs, with 94% of them going to people of color, according to Bloomberg.
However, as swiftly as these initiatives grew, a conservative backlash arose.
Stefan Padfield, the 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 differences.
More recently, critics have amplified their claims that DEI initiatives—initially intended to fight discrimination—are in themselves discriminatory, especially against white Americans. Sessions focusing on “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.”
Online platforms like End Wokeness and conservative personalities such as Robby Starbuck have leveraged this feeling, directing attention to companies for their DEI efforts. Starbuck has taken credit for changes in policy at firms like Ford, John Deere, and Harley-Davidson after revealing their DEI programs to his audience on social media.
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 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 reversal of DEI programs by major corporations prompts questions about the genuineness of their pledges to workforce diversity.
Martin Whittaker, CEO of JUST Capital—a non-profit conducting surveys on workplace issues—suggests that numerous companies initially adopted DEI initiatives to “appear favorable” following the Black Lives Matter movement, rather than from an authentic 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 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.
