Corporate America is walking a fine line as the Trump administration intensifies its crackdown on diversity, equity, and inclusion (DEI) initiatives. While some companies have publicly scaled back their DEI programs to avoid political and legal scrutiny, others continue to support these initiatives, weighing both financial opportunities and potential backlash.
On his first day in office, President Donald Trump signed an executive order dismantling DEI programs across the federal government, followed by another order directing the Justice Department to identify and potentially sue companies with heinous and “discriminatory” DEI practices. This has placed additional pressure on corporations already navigating a highly polarized environment.
Many large companies—including Lowe’s, Ford, Walmart, Target, and Google—had begun rolling back DEI programs even before Trump’s election victory in November. Ford reaffirmed its commitment to an “inclusive workplace,” while Walmart emphasized its core values of “respect, integrity, service, and excellence” after scaling back certain DEI efforts. Google announced it would retire its hiring diversity targets, citing the executive orders and recent court rulings.
Defending DEI amid backlash
Despite political and legal pressures, some corporations remain steadfast in their commitment to DEI. Costco’s board unanimously rejected a proposal by a conservative think tank to report on DEI-related risks, with shareholders overwhelmingly voting against it. Apple has also resisted similar demands and will put the issue to a vote at its annual shareholder meeting on Feb. 25.
JPMorgan Chase CEO Jamie Dimon and Goldman Sachs CEO David Solomon have defended their companies’ DEI efforts, even as both firms face anti-DEI proposals. In a shareholder letter, Dimon emphasized that DEI initiatives lead to more innovation, “smarter decisions, and better financial results.”
Socially conscious brands such as Patagonia and Ben & Jerry’s have taken a strong stance, with the latter calling out companies that have rolled back their DEI commitments. For some businesses, DEI is not just about values—it’s also a strategic advantage. Francesca’s CEO, Andrew Clarke, linked the company’s financial turnaround to its commitment to inclusivity, citing a leadership team that is 69% women.
Shifting strategies and quiet support
Even as some companies scale back public DEI initiatives, experts believe many are quietly maintaining internal efforts. Amira Barger, a DEI executive and professor, noted that corporate DEI programs enhance talent retention and consumer loyalty, making them difficult to abandon entirely.
Some businesses are rebranding their diversity initiatives under different terms, using phrases like “belonging” or “cultural competency” instead of DEI. McDonald’s, for example, renamed its diversity team the “Global Inclusion Team” while retiring certain DEI goals. The company faced immediate backlash, but executives defended the move, stating they had already met targets in gender pay equity and supplier diversity.
As corporate America navigates the evolving DEI landscape, many companies are making calculated moves—some doubling down, others rebranding, and many opting to stay silent while continuing their efforts behind the scenes. The future of DEI remains uncertain, but one thing is clear: businesses are weighing every decision carefully in the face of political, legal, and financial consequences.
