US Companies Quietly Rebrand DEI as Backlash Grows
US companies endorsing DEI now face lawsuits and other setbacks under the Trump administration.
Businesses are no longer advertising DEI benefits, instead relying on third parties to recruit diverse talent.
Ford, Lowe’s, and others have pulled out of LGBTQ+ rankings.
Amid increasing scrutiny and under the policies of the current US administration led by President Trump, many US businesses are subtly reframing their diversity, equity, and inclusion (DEI) efforts without shunning them altogether.
This is a result of mounting political pressure on businesses as well as legal concerns and fear of backlash from conservatives and Trump. Exalting DEI, particularly when it involves race- or gender-based goals, is now a risky affair for companies.
To circumvent reprimand, they are resorting to recasting DEI programmes by removing the term "DEI" and replacing it with other similar terms, such as "employee engagement" or "inclusion and impact", to sound more neutral under the government's lens.
READ MORE: Mental Health in Spotlight as FC Barcelona Celebrates Diversity Month
Some firms even turn to third-party organisations to recruit diverse candidates, avoiding any mention of diversity on their websites. In other instances, companies are providing inclusive benefits—for example, healthcare for transgender employees—but rarely speak about these initiatives.
It has reached a point where being too open about supporting certain demographic groups can lead to lawsuits or political attacks. For example, if an institution is vocal about leadership roles being filled by women or people of colour, it may be considered unlawful under current scrutiny. Consequently, diversity goals are pursued quietly, without proclamation.
To avoid being singled out, even nonprofits have started dropping terms like “social justice” or “racial equity” from their names.
Besides, some organisations have withdrawn from LGBTQ+ rankings to avoid controversy. For instance, Ford, Lowe’s, and Harley-Davidson recently pulled out of an index by the Human Rights Campaign (HRC), seemingly to avoid irking conservatives. However, Lowe’s says it remains committed to diversity, even though it no longer advertises it.
ALSO READ: Texas House Passes Bill to Ban DEI Policies in Schools
A quintessential example of a silent shift in this context is Wells Fargo. In 2020, after pledging to increase the number of Black leaders following George Floyd’s murder at the hands of a US white police officer and being cleared of a probe during Trump’s first term for possibly setting illegal quotas, the company has now stopped publishing DEI reports and removed some DEI-related language from public filings.
For the present, their inclusion page focuses on veterans, people with disabilities and neurodivergent workers. At the bottom of the page, they mention an internship programme for students at historically Black colleges and universities in an indirect association with OneTen, a nonprofit that helps people, particularly people of colour, get employment without a college degree.
In the meantime, OneTen Chief Executive Debbie Dyson spoke highly of Wells Fargo and said they are a “wonderful partner.” She added, "If you still want to support hiring in a very broad way—without using certain words—OneTen and other organizations can definitely help you do it and not put a beacon on your forehead."
ALSO READ: Culture Wars Hit Corporations: Big Brands Disclose Risks from Consumer Backlash
On the whole, US companies have not given up on DEI completely but are now engaging in clandestine internal discussions. They are still hiring people from diverse backgrounds but no longer speak publicly about it or promote it on their websites, fearing lawsuits, unwarranted attention, and political backlash.
Ends/
Are you looking to expand your sustainable operations with the help of industry experts, setting aside the influence of Trump? Discover an extensive network of ESG and sustainability providers here, offering a wide choice of green services.
Follow KnowESG's Social and Governance News for regular news and views.
Also, check out our latest ESG Online Course updates
Source: WSJ
