A number of prominent companies have recently made changes to their diversity, equity, and inclusion (DEI) initiatives, scaling back or setting them aside. This shift comes in response to a campaign by conservative activists targeting workplace programs and recent executive orders by former President Donald Trump aimed at disrupting DEI policies in both the federal government and private sector.
DEI policies are designed to address systemic barriers faced by historically marginalized groups in various fields or roles. Critics argue that some programs in education, government, and business are discriminatory as they focus on factors like race, gender, and sexual orientation. Companies have been targeted for their corporate sponsorships, employee-led affinity groups, programs supporting minority or women-owned businesses, and goals to increase minority representation in leadership positions.
While making hiring or promotion decisions based on race or gender is generally illegal under Title VII of the 1964 Civil Rights Act, companies claim they are not engaging in such practices. Instead, they aim to diversify their workforce gradually through strategies like broadening candidate pools for job openings.
Several well-known companies have adjusted their DEI initiatives:
- PepsiCo has announced the end of certain DEI initiatives, including setting goals for minority representation in managerial roles and supplier base.
- Goldman Sachs has dropped a requirement for IPO clients to include women and minority group members on their boards.
- Google rescinded a goal to increase underrepresented groups in its leadership team by 30% within five years.
- Target is making changes to its 'Belonging at the Bullseye' strategy, including ending programs supporting Black employees and businesses.
- Meta Platforms, the parent company of Facebook and Instagram, is discontinuing its DEI program and focusing on fair practices for all employees.
- Amazon is winding down outdated DEI programs and aiming for a more inclusive culture.
- McDonald's is retiring specific diversity goals at senior leadership levels and pausing external surveys.
- Walmart is not renewing its commitment to a racial equity center and will no longer participate in the HRC's Corporate Equality Index.
- Ford has stopped participating in the HRC's Corporate Equality Index and is committed to fostering an inclusive workplace.
- Lowe's is combining its employee resource groups and will no longer participate in the HRC index.
- Harley-Davidson is reviewing its sponsorships and organizations, focusing on growing the sport of motorcycling and supporting specific groups.
These changes reflect a broader trend among companies reevaluating their DEI initiatives in response to legal developments and shifting priorities.
