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.
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 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.
Yet, several of these companies are now withdrawing from those pledges. In November, Walmart revealed it would end certain diversity programs, including the closure of its Center for Racial Equity, which had played a key role in providing Ms. Ashby’s grant.
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 transition signifies a significant cultural change, influenced partly by concerns about legal disputes, regulatory oversight, and backlash on social media—pressures intensified by the current 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 ousted the nation’s top military general—a Black individual—after the defense secretary had earlier recommended his removal because of his connection to «woke» DEI strategies.
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 with terms like «affirmative action» and «equal opportunity,» these initiatives were designed to address the enduring effects of slavery and the systemic discrimination perpetuated 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 businesses and government institutions, DEI efforts primarily targeted hiring strategies that portrayed diversity as a financial benefit. Supporters contend that these programs tackle inequalities across different communities, though a significant focus has traditionally 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, just as quickly as these initiatives expanded, a conservative backlash emerged.
Stefan Padfield, 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 lines.
Recently, detractors have amplified their assertions that DEI initiatives—originally crafted to fight discrimination—are themselves prejudiced, especially against white Americans. Training programs that emphasize «white privilege» and systemic racial prejudice have faced significant criticism.
This opposition originates from conservative pushback against critical race theory (CRT), an academic approach proposing that racism is intricately woven into American society. Over time, movements opposing CRT in educational settings transformed into broader endeavors to punish «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 verdict questioned the legality of corporate DEI policies. In the wake of the ruling, Meta notified its employees that «the legal and policy landscape surrounding DEI has shifted,» shortly before revealing the discontinuation of its own DEI programs.
Corporate Retreat: An Issue 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 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.
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.