Here are 6 companies winding back DEI initiatives and if we’ll see more respond to the anti-woke backlash

There is an increasing number of companies winding back DEI (Diversity, Equity and Inclusion) initiatives, only a few years after implementing them. In June 2023, only 3 years after the murder of George Floyd, the US Supreme Court handed down its landmark judgement in Students for Fair Admissions v Harvard. It ruled that race-based affirmative action programs in college admissions processes – except military academies – violate the Equal Protection Clause of the Fourteenth Amendment.

Since then, companies have been winding back DEI initiatives out of fear they could wind up in court. The biggest of these is Walmart, which is also America’s largest private employer. If this isn’t a sign that this trend is for real, what is?

Less wokeness under Trump at government level, but at a corporate level?

The election of Donald Trump has been heralded as a referendum on DEI, with President-elect Trump promising to crack down on DEI-focused corporations that do business with the federal government. Business research group The Conference Board released a survey that found 60% of corporate executives find the DEI environment challenging…but fewer than 10% of organisations planned to scale back DEI. So maybe most the corporate world won’t be backing down, but the parts that are backing down will gain attention.

So let’s take a look at some of the companies retreating DEI, so investors who hate DEI can look at them (because their options may not be as plentiful as they think) and investors who like DEI can look elsewhere.

Here are 6 companies winding back DEI initiatives

Walmart (NYSE:WMT)

Earlier this week Walmart announced a number of changes, most notably that it will no longer give priority treatment to suppliers owned by ethnic minorities. It declined to renew a five-year commitment for a racial equity centre, and pulled out of a prominent gay rights index. It also announced it would no longer use DEI in corporate communications and no longer require racial equity training for staff.

Boeing (NYSE:BOE)

Boeing had a dedicated DEI department, but in early November got rid of it altogether. Most staff members will be purportedly reassigned, although the department’s head left the company. You could argue this was not so much a response to any anti-woke backlash as it was a plan to cut costs generally. It is set to burn through US$14bn in CY24 according to Bloomberg and is cutting 10% of its workforce for the rest of this year.

Ford (NYSE:F)

In late August, Ford issued a letter to its staff in which it told investors it did not use hiring quotas and sought to shift the focus of all employee resource groups to “networking, mentorship, personal and professional development, and community service. It would no longer be participating in the Human Rights Campaign’s Corporate Equality Index.

Tractor Supply (NDQ:TSCO)

This company did not just backtrack on DEI, but from environmentalism too – It announced in June it was withdrawing carbon emission reduction goals. While still promising it would ensure a respectful environment, it would eliminate DEI roles and retire current goals, and that it would no longer submit data to the Human Rights Campaign. Moreover the company said it would,’ Further focus on rural America priorities including ag education, animal welfare, veteran causes and being a good neighbour and stop sponsoring nonbusiness activities like pride festivals and voting campaigns’.

Lowe’s (NYSE:LOW)

First of all, we’re not talking about the Australian menswear shop. We’re talking about America’s answer to Bunnings. It started reviewing its programs immediately after the Supreme Court’s ruling. It pledged to stop supporting events like festivals and parades that are outside its business areas. It also decided to combine its resource groups into one umbrella organisation.

Molson Coors (NYSE:TAP)

The company abolished supplier diversity quotas, while still promising to make sure suppliers were representative of the company’s diverse customer base. It also withdraw from the HRC’s Index and rebranded its previously DEI-focused training programs into programs on key business objectives. It also told investors all charitable giving would be on supporting ‘core business goals’ such as alcohol responsibility and disaster relief efforts.

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