The future of DEI in the US amid growing opposition

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.

At first, Ms. Ashby financed the project using her own savings and minor grants. But in 2023, her work gained substantial support as the Walmart Foundation—the charitable arm of one of the country’s largest companies—awarded her organization more than $100,000 (£80,000). This funding was included in a larger $1.5 million initiative designed to assist “community-based non-profits led 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.”

A mere two years ago, initiatives like this received extensive support from large companies throughout the U.S., as the nation confronted systemic racism following the 2020 murder of George Floyd, a Black man who lost his life beneath the knee of a Minneapolis police officer.

Yet, several of these companies are now withdrawing from those pledges. In November, Walmart revealed it would end certain diversity programs, including the closure of its Center for Racial Equity, which had played a key role in providing 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 transition signifies a significant cultural change, influenced partly by concerns about legal disputes, regulatory oversight, and backlash on social media—pressures intensified by the current 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.

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.”

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.

However, as swiftly as these initiatives grew, a conservative backlash arose.

Stefan Padfield, executive director of the conservative think tank National Center for Public Policy Research, contends that DEI programs inherently separate individuals by racial and gender categories.

More recently, critics have intensified their arguments that DEI efforts—originally designed to combat discrimination—are themselves discriminatory, particularly toward white Americans. Training sessions that highlight “white privilege” and systemic racial bias have drawn heavy criticism.

This opposition originates from conservative pushback against critical race theory (CRT), an academic approach proposing that racism is intricately woven into American society. Over time, movements opposing CRT in educational settings transformed into broader endeavors to punish “woke corporations.”

Social media accounts like End Wokeness and conservative personalities like Robby Starbuck have leveraged this sentiment, focusing on corporations for their DEI efforts. Starbuck has asserted accountability for policy changes at firms like Ford, John Deere, and Harley-Davidson after highlighting their DEI programs to his digital audiences.

One of the most prominent triumphs for this movement took place in spring 2023, when Bud Light encountered significant backlash for collaborating with transgender influencer Dylan Mulvaney. Demands to boycott the brand and its parent company, Anheuser-Busch, led to a 28% drop in Bud Light sales, based on an analysis by Harvard Business Review.

Another major turning point arrived in June 2023, when the Supreme Court ruled that race could no longer be a factor in university admissions, effectively dismantling decades of affirmative action policies.

This verdict questioned the legality of corporate DEI policies. In the wake of the ruling, Meta notified its employees that “the legal and policy landscape surrounding DEI has shifted,” shortly before revealing the discontinuation of its own DEI programs.

Corporate Withdrawal: A Matter of Authenticity

The swift reversal of DEI initiatives among large corporations prompts questions regarding the genuineness of their dedication to workforce diversity.

Martin Whittaker, CEO of JUST Capital—a non-profit that surveys Americans on workplace matters—holds the view that many businesses initially adopted DEI initiatives to “appear favorable” following the Black Lives Matter movement, rather than from an authentic dedication to transformation.

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 is split. A survey by JUST Capital indicates that backing for DEI has diminished, but support for related matters—such as equitable pay—remains robust. In parallel, a 2023 Pew Research Center survey discovered that a majority (56%) of working adults still perceive workplace DEI efforts as advantageous.