In 2020, Corporate America Embraced DEI — But 2025 Paints a Divided Picture

Following the murder of George Floyd, corporations pledged billions to Diversity, Equity, and Inclusion (DEI) efforts. Yet five years later, the business world finds itself split. While some tech companies stand by these commitments, others are retreating under legal and political pressure.

Trump’s Executive Orders: A Turning Point for DEI Programs

President Donald Trump's return to office brought sweeping executive actions that directly target DEI. Within hours, he ordered the dismantling of DEI efforts across federal agencies, pressuring corporate America to follow suit or face potential civil rights investigations.

Labeling DEI as “public waste” and “shameful discrimination,” Trump has pushed for a return to merit-based hiring. This shift is impacting how companies operate, especially in the tech sector.

What Is DEI — And Why Is It Contested?

DEI stands for Diversity, Equity, and Inclusion — a set of policies designed to foster inclusive work environments. These programs support individuals from underrepresented communities, ensuring equal opportunity and fair treatment in professional settings.

Supporters say DEI creates cultures of belonging and boosts innovation. Critics, however, argue that it prioritizes identity over merit and leads to what they call “reverse discrimination.”

Tech Companies Scaling Back on DEI

Under political scrutiny, many tech firms are scaling back DEI programs. Here's a look at some major names:

  • Meta (Facebook): Eliminated DEI programs, reassigned leadership, and ended diversity hiring requirements.
  • McDonald’s: Sunset its diversity goals and renamed its team to “Global Inclusion.”
  • Walmart: Removed DEI references, ended racial equity training, and withdrew from LGBTQ indices.
  • Lowe’s: Ended participation in LGBTQ workplace surveys and scaled back sponsorships.
  • Harley-Davidson: Shifted sponsorship priorities away from DEI-focused events.
  • Ford: Ended minority-focused quotas and disengaged from external DEI ratings.
  • Target: Terminated DEI reporting goals and reduced product lines supporting minority businesses.
  • Disney: Replaced DEI performance metrics with a “Talent Strategy” and shut down the “Reimagine Tomorrow” initiative.

Companies Standing by DEI

While some corporations retreat, others reaffirm DEI as vital to business success and ethical responsibility:

  • Apple: Rejected shareholder proposals to dismantle DEI and emphasized a “culture of belonging.”
  • Microsoft: Highlighted DEI’s role in innovation and pledged continued support in its diversity report.
  • Costco: Shareholders voted to maintain DEI, citing employee value and inclusive growth.
  • Delta Air Lines: Reaffirmed DEI during earnings calls, calling it “critical to business.”
  • Cisco: Emphasized the business value of a diverse workforce and committed to equilibrium.
  • Ben & Jerry’s: Called out corporate backpedaling and vowed continued social justice efforts.
  • E.l.f. Beauty: Maintains inclusive culture and leadership despite not having formal DEI programs.

Business Risks in a Politicized Climate

As public perception of DEI shifts, businesses face complex risks. Experts suggest that while short-term gains may come from appeasing political narratives, long-term brand loyalty may erode among socially conscious consumers. The challenge lies in maintaining neutrality while upholding values.

What’s Next for DEI in Corporate America?

The divide is expected to grow throughout this election year. With Trump’s policies reshaping federal expectations, companies must decide whether to uphold diversity values or pivot for political alignment. One thing is clear — DEI is no longer just about HR policies; it’s a battleground for corporate identity and consumer trust.