Anti-woke: With Trump returning, US firms back off on DEI

In the United States, the terms diversity, equity and inclusion (DEI) have become so politicized and partisan that big corporations such as Meta, McDonald's, Walmart, Boeing and Ford are dialing down their policies. 

According to experts, this doesn't necessarily mean that businesses no longer care about these issues, but it shows they're rethinking their strategies to stay out of trouble. This follows rising lawsuits and online campaigns by conservatives claiming reverse discrimination. 

"Every corporate leader is now dealing with the fact that DEI in 2025 is going to be a lot more controversial, is going to be more of a risk, and is something that they have to manage," DEI strategist and author Lily Zheng told DW. 

What is DEI and who benefits from it?

In recent decades — and especially since the Black Lives Matter movement protests picked up following the police killing of George Floyd in 2020 — DEI has blossomed across the US. Many companies have implemented training to identify biases, mentorship programs for underrepresented groups, diverse hiring practices or transparent promotion criteria.

DEI policies aim to create fair environments not only in workplaces, but also in education and institutions. Addressing systemic inequalities and discrimination, they encourage representation and participation of people of different genders, races, abilities, sexual orientations and other identity markers. 

David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion, and Belonging at NYU, emphasizes that DEI is about "creating a level playing field for everyone." 

Apart from moral reasons, there is also a business case to be made for DEI policies, Glasgow told DW. Studies show that tapping into a wider range of talent leads to more innovation and creativity. Plus: it can help companies reach a more diverse consumer base. 

Progress comes in waves

But far from everyone is cheering for DEI.

"Ever since the Supreme Court decision on affirmative action in June 2023, there's been a significant uptick in anti-DEI lawsuits," Glasgow said. The ruling declared race-based admissions in colleges and universities unconstitutional and had a ripple effect across sectors.

Anti-DEI activists like Robby Starbuck are attacking such initiatives around the clock. In November 2024, he even claimed credit for ending Walmart's DEI program.

Donald Trump's former policy advisor and new cabinet nominee, Stephen Miller, has already filed lawsuits, including against Meta and Amazon, alleging DEI initiatives discriminate against white people. 

Some of these lawsuits have been successful. In September, the Fearless Fund agreed to permanently close its grant program for Black women entrepreneurs as part of a settlement with a conservative group led by activist Edward Blum. The lawsuit alledged the program violated the Civil Rights Act of 1866 by discriminating based on race. 

When Trump takes office in January, such lawsuits could gain even stronger footing, Glasgow believes: "He's going to appoint more judges that have conservative interpretations of anti-discrimination law. So, some of the lawsuits that we're tracking, I expect to be resolved in anti-DEI ways."

Glasgow acknowledges some critiques of DEI, such as approaches that rely on blame and shame, or efforts that lack rigor and effectiveness. "But I think there's also a broader backlash to progress on issues of social justice," he added.

The United States largest private employer, retailer Walmart, did not respond to DW's inquiry why they decided to phase out their racial-equity training. Another big company that took a step back from DEI said they could not comment because of the backlash they receive.

DEI strategist Zheng believes some business leaders are already scared of this riskier environment fearing "they're making decisions that unfortunately are going to have a big impact on probably their bottom line, their brand reputation, their employee retention, their morale."

A matter of rebranding? 

For now, a large majority of corporate America still has DEI policies in place, a study by nonprofit business research organization The Conference Board found. And around 80% of the companies surveyed plan to maintain or increase their DEI resources over the next three years.

Experts like Lily Zheng think that even companies that are rolling back and becoming quieter about their commitments might still uphold their values. "Maybe they're calling it belonging. Maybe they're focusing on fairness. But either way, the bulk of these existing commitments doesn't seem to be changing," Zheng said. 

Indeed, just weeks after Donald Trump's election win, Walmart updated its website and replaced a section it called "Belonging, diversity, Equity and Inclusion" simply with "Belonging." 

Commenting on Walmart's and other companies' shifting strategies, Glasgow believes they are not saying "we no longer care about having a diverse workplace," rather they're saying: "Here are certain kinds of DEI programs that we're no longer going to adopt."

However, Lily Zheng pointed out that the absence of clear goals around DEI "might result in reduced investments," and if leaders hesitate to take a stand and express their commitment to these values, Zheng warned, "we might lose control of the narrative."

Edited by: Uwe Hessler