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.”
“I was moved to tears,” she confessed. “It was one of those instances when you understand that someone genuinely recognizes and appreciates what you do.”
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, numerous corporations are now withdrawing from these commitments. In November, Walmart shared plans to end certain diversity efforts, with the closure of its Center for Racial Equity, which had played a key role in financing Ms. Ashby’s grant, among them.
Companies like Meta, Google, Goldman Sachs, and McDonald’s have taken similar steps, indicating a wider corporate retreat from diversity, equity, and inclusion (DEI) programs.
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 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 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.
Originally termed as “affirmative action” and “equal opportunity,” these initiatives were designed to address the enduring effects of slavery and the institutionalized discrimination imposed by Jim Crow laws.
As social justice movements grew to include women’s rights, LGBTQ+ advocacy, and racial and ethnic diversity, the language associated with these endeavors expanded to cover “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.
Nonetheless, as rapidly 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 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.
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 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.
A major and visible achievement for this movement occurred in spring 2023, when Bud Light encountered significant backlash for teaming up with transgender influencer Dylan Mulvaney. The resulting calls to boycott the brand and its parent company, Anheuser-Busch, led to a 28% drop in Bud Light sales, according to a Harvard Business Review analysis.
Another significant milestone came in June 2023, when the Supreme Court decreed that race could no longer be a consideration in university admissions, effectively dismantling 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 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.
Nevertheless, not all businesses are succumbing to political and legal pressure. A report by the conservative think tank Heritage Foundation pointed out that although DEI programs seem to be decreasing, “nearly all” Fortune 500 companies continue to incorporate DEI commitments in their official statements. Moreover, Apple shareholders recently chose to uphold the company’s diversity efforts.
Public opinion on DEI remains divided. A survey by JUST Capital suggests that support for DEI has waned, but support for related issues—such as fair pay—remains strong. Similarly, a 2023 Pew Research Center survey found that a majority (56%) of employed adults still believe that workplace DEI efforts are beneficial.
