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.»
«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.»
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.
Nonetheless, numerous corporations are now withdrawing from these pledges. In November, Walmart revealed the cessation of certain diversity programs, which includes the closure of its Center for Racial Equity, a key player in funding the grant received by Ms. Ashby.
Firms like Meta, Google, Goldman Sachs, and McDonald’s have undertaken comparable actions, highlighting a more extensive corporate retraction from diversity, equity, and inclusion (DEI) programs.
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 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.»
Within the early months of his second term, the Department of Veterans Affairs closed its DEI offices, the Environmental Protection Agency placed nearly 200 civil rights employees on paid leave, and Trump dismissed the country’s top military general—a Black man—after his defense secretary previously suggested he should be removed due to his association with «woke» DEI policies.
At first glance, it may seem that the U.S. has abandoned efforts to improve outcomes for historically marginalized racial and identity groups. However, some experts suggest these initiatives may persist, albeit under different names that align more closely with the shifting political climate of a nation that has just elected a leader committed to combating «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 expanded to include women’s rights, LGBTQ+ advocacy, and racial and ethnic diversity, the language describing these efforts widened to incorporate «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 drive for DEI escalated in 2020 during the Black Lives Matter demonstrations and rising calls for societal change. 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 firms like Google and Nike already had similar positions established. As a result of these developments, S&P 100 companies generated over 300,000 new jobs, with 94% of them awarded to people of color, per Bloomberg.
However, just as quickly as these initiatives expanded, a conservative backlash emerged.
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.
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.»
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 of the most visible victories for this movement came in spring 2023, when Bud Light faced widespread backlash for partnering with transgender influencer Dylan Mulvaney. Calls to boycott the brand and its parent company, Anheuser-Busch, resulted in a 28% decline 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 ruling raised questions about the legal basis of corporate DEI policies. In the wake of the decision, Meta notified employees that «the legal and policy landscape surrounding DEI has shifted,» shortly before announcing the end of its own DEI initiatives.
Corporate Retreat: An Issue of Authenticity
The swift retreat of DEI programs among prominent corporations raises questions about the genuineness of their dedication to workforce diversity.
Martin Whittaker, CEO of JUST Capital—a non-profit that surveys Americans on workplace issues—believes that many companies initially embraced DEI efforts to «look good» in the wake of the Black Lives Matter movement, rather than out of genuine 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.
