Feb 12, 2025 Story by: Publisher
This article has been updated to include Goldman Sachs, who confirmed the investment firm was dropping a requirement that forced IPO clients to include women and members of minority groups on their board of directors.
In the aftermath of nationwide protests following the 2020 police killing of George Floyd, many corporations embraced diversity, equity, and inclusion (DEI) initiatives. However, a growing number of companies are now scaling back or discontinuing these efforts.
Conservative activists, bolstered by the U.S. The Supreme Court’s decision to outlaw affirmative action in college admissions has targeted DEI programs through legal challenges and social media campaigns. These efforts have scrutinized corporate sponsorships, employee-led affinity groups, and hiring practices aimed at historically marginalized groups.
DEI policies were initially designed to counteract discriminatory practices. Critics, however, argue that such initiatives unfairly single out participants based on factors like race, gender, or sexual orientation, and believe opportunities should be equally accessible to everyone.
Here’s how some major companies have adjusted their DEI strategies:
Goldman Sachs
Investment firm Goldman Sachs confirmed that it was dropping a requirement that forced IPO clients to include women and members of minority groups on their board of directors.
“As a result of legal developments related to board diversity requirements, we ended our formal board diversity policy,” said a Goldman Sachs spokesman in an email to The Associated Press. “We continue to believe that successful boards benefit from diverse backgrounds and perspectives, and we will encourage them to take this approach.”
Goldman Sachs said that it will still have a placement service that connects its clients with diverse candidates to serve on their boards.
Google is scrapping some of its diversity hiring targets, joining a lengthening list of U.S. companies that have abandoned or scaled back their diversity, equity and inclusion programs.The search engine’s online and mobile calendars no longer include reference to the first day of Black History Month, or Women’s History month, among other holidays and events.
A Google spokesperson said the changes took place in the middle of last year.
“Some years ago, the Calendar team started manually adding a broader set of cultural moments in a wide number of countries around the world,” the spokesperson said in an email. “We got feedback that some other events and countries were missing — and maintaining hundreds of moments manually and consistently globally wasn’t scalable or sustainable,” the spokesperson added.
The move, which was outlined in an email sent to Google employees on Wednesday, came in the wake of an executive order issued by President Donald Trump that was aimed in part at pressuring government contractors to scrap their DEI initiatives.
Like several other major tech companies, Google sells some of its technology and services to the federal government, including its rapidly growing cloud division that’s a key piece of its push into artificial technology.
Google’s parent company, Alphabet, also signaled the shift in its annual 10-K report it filed this week with the Securities and Exchange Commission. In it, Google removed a line included in previous annual reports saying that it’s “committed to making diversity, equity, and inclusion part of everything we do and to growing a workforce that is representative of the users we serve.”
The representation of Black people in the company’s leadership ranks rose from 2.6% in 2020 to 5.1% last year, according to Google’s annual diversity report. For Hispanic people, the change was 3.7% to 4.3%. The share of women in leadership roles, meanwhile, increased from 26.7% in 2020 to 32.8% in 2024, according to the company’s report.
The numbers aren’t much different in Google’s overall workforce, with Black employees comprising just 5.7% and Latino employees 7.5%. Two-thirds of Google’s worldwide workforce is made up of men, according to the diversity report.
Target
Target announced changes to its “Belonging at the Bullseye” strategy, including the discontinuation of a program created to support Black employees, enhance Black shoppers’ experiences, and promote Black-owned businesses. The retailer, headquartered in Minneapolis, also ended its three-year DEI goal cycles, which included hiring and promoting women and racial minorities and sourcing from diverse suppliers.
Additionally, Target will no longer participate in surveys like the Human Rights Campaign’s annual index and will reevaluate its corporate partnerships to align more directly with business objectives.
Meta Platforms
Meta, the parent company of Facebook and Instagram, is phasing out its DEI program. Policies related to hiring, training, and vendor selection have been eliminated, citing the Supreme Court’s affirmative action ruling as a pivotal factor.
An internal memo revealed Meta’s intent to focus on “fair and consistent practices that mitigate bias for all, no matter your background.” The company also ended its “diverse slate approach” for hiring, a policy requiring a diverse pool of candidates for every open role.
Joel Kaplan, Meta’s global policy chief, emphasized that the move aims to prioritize “building teams with the most talented people” rather than basing hiring decisions on protected characteristics.
Amazon
Amazon announced plans to wind down certain DEI programs. In a memo, senior HR executive Candi Castleberry noted that the company is focusing on initiatives with proven outcomes and fostering a more inclusive culture. She added that outdated programs would be phased out by the end of 2024.
McDonald’s
McDonald’s declared it would retire diversity goals for senior leadership and end a program encouraging suppliers to enhance diversity within their ranks. The fast-food giant will also pause participation in external surveys, including the Human Rights Campaign’s index.
Despite these changes, McDonald’s leadership affirmed its commitment to inclusion, stating that a diverse workforce remains a competitive advantage.
Walmart
Walmart decided not to renew a five-year commitment to a racial equity center established in 2020 and ceased participating in the Corporate Equality Index. The company also announced it would no longer use race or gender as criteria for supplier contracts or gather demographic data for grant eligibility.
Ford
In August, Ford CEO Jim Farley informed employees of changes to DEI policies, including withdrawing from the HRC index. While reaffirming the company’s commitment to a safe and inclusive workplace, Farley stated that resources would focus on customers, employees, and communities rather than “polarizing issues.”
Lowe’s
Lowe’s streamlined its employee resource groups into a single organization and ended sponsorships for events like Pride festivals. The company also withdrew from the HRC index following a review of its DEI programs prompted by the Supreme Court ruling.
Harley-Davidson
Harley-Davidson announced it would reevaluate sponsorships and training programs, shifting focus to business needs while eliminating socially motivated content. The company will no longer set hiring quotas or maintain supplier diversity spending goals.
Brown-Forman
The parent company of Jack Daniels ceased participating in the HRC index and adjusted its diversity strategy. Leaders noted that evolving business needs and legal changes prompted the decision. While removing quantitative diversity goals, the company emphasized fostering an inclusive environment.
John Deere
John Deere halted sponsorships for “social or cultural awareness” events and committed to reviewing training materials to exclude socially motivated messages. The company reiterated its stance against diversity quotas and pronoun identification policies.
Tractor Supply
Tractor Supply ended its DEI roles, discontinued corporate sponsorships unrelated to business objectives, and withdrew from its carbon emission goals. The retailer faced backlash from the National Black Farmers Association, which called for the resignation of its CEO.
As these companies revise their DEI policies, the changes reflect broader societal and legal shifts, highlighting the evolving landscape of corporate commitments to diversity and inclusion. Source: TIME