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.
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 brought me to tears,” she admitted. “It was one of those moments where you realize that someone truly sees and values your work.”
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 taking office in January, Donald Trump has actively sought to dismantle DEI programs, pushing for a shift back to “merit-based opportunity” in the U.S. He has directed the federal government to eliminate DEI initiatives and begin investigations into private companies and academic institutions suspected of “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
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 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.
However, just as quickly as these initiatives expanded, a conservative backlash emerged.
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 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 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 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 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 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 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.
