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.
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 admitted. “It was one of those moments where you realize that someone truly sees and values your work.”
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.
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 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 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.”
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 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.
Originally termed as “affirmative action” and “equal opportunity,” these initiatives were designed to address the enduring effects of slavery and the institutionalized discrimination imposed by 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 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.
Nonetheless, as rapidly as these initiatives grew, a conservative backlash 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.
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 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 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 major turning point arrived in June 2023, when the Supreme Court ruled that race could no longer be a factor 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 Withdrawal: A Matter 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 conducting surveys on workplace issues—suggests that numerous companies initially adopted DEI initiatives to “appear favorable” following the Black Lives Matter movement, rather than from an authentic commitment to change.
Nevertheless, not all businesses are succumbing to political and legal pressure. A report by the conservative think tank Heritage Foundation pointed out that although DEI programs seem to be decreasing, “nearly all” Fortune 500 companies continue to incorporate DEI commitments in their official statements. Moreover, Apple shareholders recently chose 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.