The anti-DEI movement picked up steam recently because of one person at the top.
Since President Donald Trump’s return to office, his administration has aggressively removed diversity, equity and inclusion (DEI) from the federal government, including any mention of “gender ideology” in “contracts, job descriptions, and social media accounts.” The new administration has also fired, transferred, or removed any federal personnel who worked on DEI.
Taking it one step further, on his second day in office, Trump signed an executive order instructing government agencies to investigate DEI programs at publicly traded corporations. Many of those corporations rely on government contracts to stay in business.
The Department of Government Efficiency (DOGE), a new government entity led by billionaire Elon Musk, states that “85 Diversity, Equity, Inclusion and Accessibility-related contracts totaling approximately $1 billion at several departments and bodies had been terminated,” according to a report from Reuters.
Perhaps to prove a point, Trump stated without evidence that diversity programs at the Federal Aviation Administration were to blame for the Jan. 30 crash in Washington between a passenger plane and a military helicopter.
Corporations drop DEI programs
Even before Trump took office, many companies saw the anti-DEI writing on the wall. For example, Walmart WMT , John Deere , Ford , Harley-Davidson HOG , Meta META , Lowe’s LOW , McDonald’s MCD , Target TGT , and Tractor Supply TSCO are moving away from their DEI policies, either by eliminating them completely, not talking about them, or disguising them.
Walmart, the largest U.S. retailer, claimed that their anti-DEI policies have been in “progress for a while.” At least 30 Walmart shareholders, including a number of large institutional investors, said that Walmart’s move was “disheartening.”
Meta reported it was dumping its DEI program, effective immediately. Joel Kaplan, vice president of global public policy at Meta, told Fox News that the tech company was “building teams with the most talented people” rather than promoting or tolerating discrimination on the basis of “inherent characteristics.” And in a memo from Janelle Gale, vice president of human resources, Meta told its employees the company was changing direction on DEI because the “legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing.”
Amazon is pausing some of its DEI programs, but didn’t specify which ones. Candi Castleberry, vice president of global DEI at Amazon, wrote a memo to employees explaining that it was “winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024.”
McDonald’s also gave up on its DEI targets, citing the Supreme Court’s decision to end affirmative action at universities. The fast-food chain said it would continue to report demographic information in its own annual report.
Costco and Apple push back on anti-DEI
But amid the rising anti-DEI movement, Costco COST and Apple AAPL are standing firm behind its programs.
Costco shareholders on Jan. 23 rejected a proposal from the National Center for Public Policy Research, a conservative think tank, to report on whether diversity programs negatively affect profits.
Before the vote, Costco’s board of directors defended DEI, stating that these programs “enhance our capacity to attract and retain employees who will help our business succeed.” The board recommended rejecting the proposed risk report and 98% of shareholders voted against the proposal.
Nineteen state attorneys general sent Costco President and CEO Ron Vachris a letter, warning him to stop supporting DEI programs, calling them “unlawful discrimination.”
At Apple, the board of directors also recommended shareholders vote against a similar recommendation from the National Center for Public Policy Research at its upcoming Feb. 25 shareholder meeting.
The think tank wants Apple to abolish its DEI “department, policies and goals.” But Apple’s board wrote to their shareholders that the company wants “to create a culture of belonging where everyone can do their best work.”
Apple shareholders are also expected to reject the proposal to eliminate its DEI policies. The company said the proposal attempts to “inappropriately” restrict and “micromanage” Apple. The company said it has “well-established compliance programs.”
Conclusion
The anti-DEI movement is growing with the backing of Trump and conservative think tanks and activists.
While many corporations see the value of DEI programs and stand behind their DEI efforts, there is little doubt that this issue will be debated in the boardrooms and at the highest levels of government in the coming days, months, and perhaps years. How many will cave to pressure from the government remains anyone’s guess.
Read more: Consider these DEI initiatives under a second Trump administration
