Anti-DE&I rhetoric became almost a battle cry for “go woke, go broke” crusaders in 2024, causing some companies to limit DE&I efforts moving forward, and others to continue initiatives in stealth mode, with different terminology.
Activists like Robby Starbuck and Christopher Rufo, and public figures including President-elect Donald Trump and Elon Musk, have promised to end DE&I, spreading misinformation that the initiatives are racist and don’t support merit hiring. Beyond the public discourse, 14 states have signed laws limiting the initiatives at universities or state governments.
Some companies have made changes to their DE&I practices in an attempt to limit scrutiny, and the Society for Human Resource Management (SHRM) removed the “equity” language from its inclusion and diversity efforts, in a move that angered many HR leaders.
Despite the splashy headlines and proclamations that DE&I is DOA or that companies are “retreating,” it appears that most employers are continuing their efforts, according to an October report from the Conference Board. Three-quarters of companies said they have a dedicated DE&I leader, while 71% of workers said that diversity initiatives help improve their feeling of belonging.
Backing off. In November, Walmart became the largest, most high-profile company to say it was walking back some of its DE&I initiatives. Like most of the other roughly 10 companies that changed course this year, Walmart said it will no longer participate in the Human Rights Campaign’s workplace index or the Disability:IN Disability Equality Index, as we previously reported.
Automakers Ford and Toyota announced changes to their initiatives earlier in the fall. Ford changed its employee resource group policies, opening them to all employees, and Toyota said it will no longer sponsor cultural events that aren’t focused on “workforce readiness,” Bloomberg reported.
Tractor company John Deere and farm retailer Tractor Supply were the first companies to make changes, after pressure from Starbuck. The companies, with customers largely in rural areas, have gone further than some others by limiting the focus of their ERGs, HR Brew reported.
Quick-to-read HR news & insights
From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.
Quiet. Other employers are pushing ahead, but doing so quietly, so as to not draw attention to themselves. For example, Amazon quietly released an in-depth racial equity audit earlier this fall, while Meta has continued with several DE&I initiatives, despite news of DE&I cuts last year.
Several companies that are continuing their DE&I work are changing what they call the initiatives, to make it more palatable to people uncomfortable with the acronym, as we reported earlier this year.
“Language in DE&I work is evolving to become more inclusive, precise, and action-oriented. As practitioners, we are moving away from general terms like ‘diversity’ and ‘inclusion’ to more specific language such as ‘equity,’ ‘belonging,’ and ‘anti-racism,’” Amira Barger, EVP and head of DE&I communications at Edelman, told the PR trade publication, Ragan.
Doubling down. Despite the high-profile rollbacks, there are several companies and business executives, including Microsoft and billionaire Mark Cuban, that believe diversity is vital to business strength and growth.
Citigroup, which has approximately 229,000 employees globally, has also said it’s still committed to DE&I. “It’s time to kill the notion that there’s a tradeoff between diversity and meritocracy,” Jane Fraser, CEO at Citi, said in a quote on the company’s website, which notes the firm is “committed to diversity, equity, and inclusion.”
And beauty retailer Sephora has said that diversity is core to the company’s success, including its 14% LGBTQ+ employee representation. Job seekers view Sephora as an employer of choice that gives “specific attention” to traditionally underrepresented communities, George-Axelle Broussillon Matschinga, VP of DE&I at Sephora, previously told HR Brew.
Consulting firms like Accenture, EY, and Deloitte have continued with their own diversity initiatives, all under different names. “I cover 150 countries. From a global perspective, we know what our priorities are,” Emma Codd, global chief diversity officer at Deloitte, told HR Brew in November. “They’re [DE&I initiatives] really important to us as an organization.”