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.
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.”
“It moved me to tears,” she confessed. “It was one of those instances where 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.
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.
Businesses like Meta, Google, Goldman Sachs, and McDonald’s have taken comparable actions, indicating a wider corporate retreat from diversity, equity, and inclusion (DEI) efforts.
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 assuming office in January, Donald Trump has vigorously sought to dismantle DEI initiatives, promoting a return to “merit-based opportunity” in the United States. He has directed the federal government to abolish DEI programs and initiate investigations into private companies and academic institutions suspected of participating in “unlawful 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.
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 Roots 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.
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 evolved to encompass women’s rights, LGBTQ+ advocacy, and racial and ethnic diversity, the terminology surrounding these efforts broadened to include “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 gained momentum in 2020 during the Black Lives Matter demonstrations and rising calls for societal reform. 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 companies like Google and Nike already maintained analogous leadership positions. After these developments, S&P 100 companies generated more than 300,000 new jobs, with 94% allocated to people of color, based on Bloomberg’s findings.
However, as swiftly as these initiatives grew, a conservative backlash arose.
Stefan Padfield, the 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 differences.
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.
The roots of this opposition stem from conservative resistance to critical race theory (CRT), an academic framework that suggests racism is deeply embedded in American society. Over time, campaigns against CRT in schools evolved into broader efforts 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.
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 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 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.
Nonetheless, not all companies are yielding to political and legal pressure. A report by the conservative think tank Heritage Foundation noted that while DEI programs appear to be in decline, “nearly all” Fortune 500 companies still include DEI commitments somewhere in their official statements. Additionally, Apple shareholders recently voted to maintain 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.