In Union County, South Carolina, the cotton mills that once sustained the economy and offered jobs have vanished over time. Today, this area is designated as a “food desert,” indicating that numerous inhabitants reside a considerable distance from the nearest supermarket. Observing this problem, community non-profit leader Elise Ashby initiated a project in 2016. She partnered with local farmers to deliver affordable boxes of fresh fruit and vegetables across the county, which has a demographic where nearly 30% of the population is Black and approximately 25% are living below the poverty line.
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.”
Just two years ago, programs like this were widely backed by major corporations across the U.S., as the country reckoned with systemic racism following the 2020 murder of George Floyd, a Black man who died under the knee of a Minneapolis police officer.
However, numerous corporations are now withdrawing from these commitments. In November, Walmart shared plans to end certain diversity efforts, with the closure of its Center for Racial Equity, which had played a key role in financing Ms. Ashby’s grant, among them.
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.”
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.
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
Initiatives similar to DEI first gained traction in the U.S. during the 1960s, in reaction to the civil rights movement, which aimed to extend 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 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.
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, argues that DEI programs fundamentally divide people along racial and gender lines.
More recently, critics have intensified their arguments that DEI efforts—originally designed to combat discrimination—are themselves discriminatory, particularly toward white Americans. Training sessions that highlight “white privilege” and systemic racial bias have drawn heavy criticism.
The basis of this opposition originates from conservative pushback against critical race theory (CRT), an academic model proposing that racism is deeply ingrained in American society. Over time, campaigns against CRT in educational institutions evolved into wider attempts to target “woke corporations.”
Social media accounts like End Wokeness and conservative figures such as Robby Starbuck have capitalized on this sentiment, targeting companies for their DEI initiatives. Starbuck has claimed responsibility for policy shifts at companies like Ford, John Deere, and Harley-Davidson after exposing their DEI programs to his online followers.
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 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 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 firms initially adopted DEI efforts to “appear favorable” following the Black Lives Matter movement, rather than from a true dedication 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 opinion on DEI remains divided. A survey by JUST Capital suggests that support for DEI has waned, but support for related issues—such as fair pay—remains strong. Similarly, a 2023 Pew Research Center survey found that a majority (56%) of employed adults still believe that workplace DEI efforts are beneficial.