Ethics & Compliance Learning
2025: The Year Companies Rethink DEI Initiatives?
Growing cultural and political scrutiny has positioned Diversity, Equity, and Inclusion (DEI) initiatives as a complex issue for corporations navigating both mixed public opinion and legal risks.
What’s happening now? While some well-known companies are scaling back their DEI programs, others are shifting focus or refining efforts to align with legal and cultural changes. These changes reflect a broader corporate reassessment of various programs’ impacts and missions.
Some companies have now released official statements on what they’re doing now in the DEI space, while others have shared details more informally. Below is a snapshot of some recent developments to watch.
Meta
Meta (formerly known as Facebook) has now scaled back its DEI programs, including those related to hiring, training, and supplier diversity. Meta has cited changes in the legal and policy landscape and the increasingly charged perception of DEI as influencing its decision. Meta says it is redirecting its focus to accessibility and engagement. (See info on Meta’s internal memo here.)
“The term ‘DEI’ … in part … is understood by some as a practice that suggests preferential treatment of some groups over others.” — Janelle Gale, Meta’s vice president of people, in an internal memo
Walmart
Last November, Walmart—which has 1.6 million workers——adjusted its DEI initiatives by not renewing a five-year commitment to a racial equity center. Walmart has withdrawn from the Human Rights Campaign’s Corporate Equality Index as part of a broader rollback of its DEI initiatives, including ending its racial equity center and supplier diversity considerations.
Amazon
Amazon is reviewing its DEI initiatives, now focusing, they say, on programs with more tangible and proven outcomes while fostering a more inclusive culture. This includes integrating DEI goals into existing processes and unifying employee resource groups under a single framework. (See info on internal memo here.)
“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture.” — Candi Castleberry, Amazon’s VP of inclusive experiences and technology, in an internal memo
McDonald’s
McDonald’s announced it will retire specific goals for achieving diversity at senior leadership levels and end a program that encourages its suppliers to develop diversity training. (See the company memo here.)
“Last year, we completed a comprehensive Civil Rights Audit (CRA) that looked at all aspects of inclusion across our system. We also engaged with shareholders to understand their expectations and assessed the overall landscape of shareholder proposals … and, finally, we benchmarked our approach to other companies who are also re-evaluating their own programs.” — McDonald’s memo
John Deere
John Deere announced ceasing sponsoring social or cultural awareness events like Pride parades and audit training materials to remove socially motivated messages. Employee resource groups will now focus on professional development, networking, mentoring, and supporting talent recruitment efforts. (See John Deere’s statement here on X.)
“…Deere is always listening to feedback and looking for opportunities to improve. That’s why we consistently prioritize internal policies that more closely align our business strategy to meet the needs of our customers. … We remain committted to listening to our customers, employees, and other key stakeholders.” — John Deere’s statement on their X account, July 16, 2024, with 6.5 million views.
Lowe’s
Lowe’s has scaled back its DEI policies, including ceasing participation in the Human Rights Campaign’s workplace inclusion survey for LGBTQ+ employees.
Tractor Supply
Tractor Supply announced the elimination of DEI roles and the retirement of current DEI goals. The company also will stop sponsoring non-business activities like Pride festivals and voting campaigns to refocus on core business efforts.
Harley-Davidson
In April 2024, Harley-Davidson ended its DEI initiatives, including eliminating hiring quotas and supplier diversity spending goals. (See their statement on X here.)
“…[We] have not operated a DEI function since April 2024, and we do not have a DEI function today. We do not have hiring quotas and we no longer have supplier diversity spend goals. … Training provided will be related to the needs of the business and be absent of socially motivated content – only legally required training has ever been mandatory at Harley-Davidson. — Harley-Davidson’s statement on X on August 19, 2024, with 2.6 million views.
Apple
Apple’s board is urging shareholders to vote against a proposal from the National Center for Public Policy Research to eliminate its DEI initiatives. The proposal—citing the Supreme Court’s affirmative action ruling—states DEI programs pose legal and reputational risks. Apple maintains its existing compliance protocols address such concerns and asserts the proposal is unnecessary and hinders the company’s ability to manage its operations. The shareholder vote is scheduled for February 25. (Information via Forbes.)
Final Thoughts
The evolving landscape of DEI initiatives presents both challenges and opportunities for organizations striving to balance compliance, public perception, and business goals. As companies reassess and adapt their strategies, the need for a thoughtful and effective approach is urgently critical.
Let’s Start a Conversation
SAI360 is here to help your organization navigate the evolving DEI landscape. Our team can provide insights and tailored solutions to align your DEI strategies with current cultural and legal expectations. Together, we can build a more inclusive and effective organizational culture.
Schedule a virtual coffee with a team member:
