SEVERAL major tech firms that previously led the industry in diversity, equity, and inclusion (DEI) efforts have started to withdraw, scale down or modify their diversity programs in response to these recent executive orders by re-elected Unites States president Donald Trump.
Meta, Alphabet (Google), and Amazon, have reduced their DEI commitments. Accenture who has a sizeable business process outsourcing operation in the Philippines also announced cutting back on their otherwise strong DEI programs.
CEO Julie Sweet, in a report in The Guardian stated that Accenture would begin “sunsetting” its diversity goals, along with career development programs tailored for specific demographic groups. The company has also decided to stop using DEI metrics to assess employee performance and will no longer submit diversity data to external benchmarking surveys. “We will evaluate external partnerships on diversity as part of refreshing our talent strategy,” Sweet noted in the memo.
In a report that appeared in the Associated Press, Google reaffirmed its commitment to equal opportunities, stating, “We’re committed to creating a workplace where all our employees can succeed and have equal opportunities, and over the last year we’ve been reviewing our programs designed to help us get there.” The company also referenced compliance considerations, adding, “As a federal contractor, our teams are also evaluating changes required following recent court decisions and executive orders on this topic.”
Trump’s EO’s have placed substantial legal and financial pressures on corporations that maintain DEI programs. These orders claim that many diversity policies violate federal civil rights laws by promoting race- or gender-based preferences in hiring and advancement. As a result, federal contractors in particular face heightened scrutiny, with potential financial penalties if their DEI initiatives are deemed noncompliant.
According to a report on MSNBC, one of the most significant threats to corporations is the possibility of litigation under the False Claims Act of 1863. This law imposes severe penalties on government contractors found guilty of making fraudulent claims, and it is now being used to target diversity policies perceived as discriminatory. With the risk of lawsuits and financial repercussions, many corporations are reconsidering their DEI commitments.
The shift away from DEI is not confined to the tech sector. Major corporations such as Walt Disney Co., McDonald’s, Ford, and Walmart have also begun scaling back their diversity efforts. The rationale for these changes varies, with some companies citing compliance concerns, while others suggest that prioritizing merit-based hiring and promotions could enhance workplace efficiency and productivity.
Proponents of the rollback argue that these policies foster a more neutral, performance-driven corporate culture, free from demographic quotas or identity-based considerations. They believe that eliminating DEI-focused hiring and promotion practices will lead to a fairer and more competitive workforce.
Critics however warn that dismantling DEI initiatives could have long-term negative consequences. Without intentional efforts to promote diversity, workplaces may become less inclusive, leading to decreased innovation and limited perspectives within organizations.
Additionally, companies that withdraw from DEI initiatives risk alienating employees, consumers, and investors who prioritize corporate social responsibility. A December 2023 McKenzie report “Diversity Matters Even More,” suggests that businesses with strong diversity commitments often perform better financially, foster more engaged workforces, and experience stronger brand loyalty.
