In Union County, South Carolina, the formerly prosperous cotton mills that once employed numerous residents have vanished. Today, the county is labeled a “food desert,” indicating that a significant portion of its inhabitants reside at a distance from the closest supermarket. Addressing this challenge, community non-profit leader Elise Ashby initiated efforts in 2016, working alongside farmers to deliver affordable boxes of fresh fruits and vegetables across the county, where roughly 30% of the citizens are Black and nearly 25% experience poverty.
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.”
“It brought me to tears,” she confessed. “It was one of those instances when you understand that someone genuinely recognizes and appreciates your efforts.”
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, 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.
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 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 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.”
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.
Initially, it might appear that the U.S. has forsaken efforts to enhance outcomes for historically marginalized racial and identity groups. However, some experts propose that these initiatives could continue, though under different titles that resonate more closely with the evolving political landscape of a nation that has just chosen a leader determined to oppose “woke” policies.
The Origins of the Backlash
Programs modeled after DEI initially gained traction in the United States during the 1960s, as a reaction to the civil rights movement, which aimed to enhance and safeguard the rights of Black Americans.
Originally described through terms like “affirmative action” and “equal opportunity,” these programs sought to address the enduring impacts of slavery and the institutional 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.”
In the realm of corporations and government bodies, DEI initiatives primarily concentrated on recruitment practices, portraying diversity as a financial benefit. Proponents claim that these programs tackle inequities across different communities, even though the focus has traditionally 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, 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.
In recent times, critics have amplified claims that DEI efforts—initially intended to fight discrimination—are themselves discriminatory, especially against white Americans. Training workshops that emphasize “white privilege” and systemic racial bias have faced significant criticism.
The foundation of this opposition originates from conservative pushback against critical race theory (CRT), an academic concept positing that racism is intricately woven into American society. Gradually, efforts opposing CRT in education broadened into wider campaigns aiming to penalize “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.
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 juncture came in June 2023, when the Supreme Court decided that race could no longer be a consideration in university admissions, effectively overturning decades of affirmative action practices.
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 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 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.
