In Union County, South Carolina, the cotton mills that once supplied many jobs have vanished. Now, the county is labeled as a «food desert,» indicating residents are often distant from grocery stores. Acknowledging this challenge, local non-profit leader Elise Ashby initiated a project in 2016, working with farmers to deliver affordable boxes of fresh fruits and vegetables across the area, where around 30% of the population is Black, and about 25% face poverty.
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 moved me to tears,» she confessed. «It was one of those instances where 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.
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.
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 transition signifies a significant cultural shift, partly fueled by concerns over potential legal issues, regulatory examination, and negative reactions on social media—pressures intensified by the current U.S. president.
Since assuming office in January, Donald Trump has vigorously attempted to dismantle DEI programs, promoting a revival of «merit-based opportunity» within the United States. He has directed the federal government to abolish DEI initiatives and commence inquiries into private companies and educational establishments suspected of participating 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 removed the nation’s leading military general—a Black man—following prior recommendations from his defense secretary for his removal due to his connection 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 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 gained momentum in 2020 during the Black Lives Matter protests and escalating calls for social change. Walmart, for example, committed $100 million over five years to create its Center for Racial Equity. Wells Fargo hired its inaugural chief diversity officer, while firms like Google and Nike already had similar leadership positions established. After these developments, S&P 100 companies generated more than 300,000 new jobs, with 94% filled by people of color, as reported by Bloomberg.
Nonetheless, as swiftly as these initiatives grew, a conservative pushback 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.
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.
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 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 raised questions about the legal foundation of corporate DEI policies. After the ruling, Meta advised employees that «the legal and policy landscape surrounding DEI has shifted,» shortly before revealing the termination of its own DEI programs.
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 firms initially adopted DEI efforts to «appear favorable» following the Black Lives Matter movement, rather than from a true dedication to change.
Nonetheless, not every company is succumbing to political and legal pressure. A report by the conservative think tank Heritage Foundation remarked that although DEI programs seem to be waning, «nearly all» Fortune 500 companies still incorporate DEI commitments within their official statements. Moreover, Apple shareholders recently voted to uphold the company’s diversity efforts.
Public sentiment on DEI is polarized. A survey by JUST Capital indicates that backing for DEI has decreased, yet support for associated matters—like equitable pay—remains robust. Likewise, a 2023 Pew Research Center survey revealed that a majority (56%) of working adults still perceive workplace DEI initiatives as advantageous.
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