Donald Trump’s executive orders aimed at dismantling diversity, equity, and inclusion (DEI) programs have sent shockwaves through corporate America, with many Fortune 500 companies reevaluating their commitments to these initiatives. Goldman Sachs, Disney, and Target are among those that have made efforts to erase programs deemed potentially discriminatory or illegal.
However, new research from Columbia Business School suggests that simply releasing statements about DEI or making tokenistic donations will not be enough to win over consumers. The study analyzed 348 statements on allyship from Fortune 500 companies and found that a genuine commitment to DEI is only achievable when organizations demonstrate an ongoing commitment of resources.
According to assistant professor Rebecca Ponce de Leon, companies must be transparent about their values and adhere to them even as societal attitudes change. Target, a retail giant once known for its support of DEI initiatives, recently reversed course by eliminating hiring goals for minority employees and ending a partnership program with Black-led brands, sparking widespread outrage from customers.
This backlash highlights the importance of leaders being clear about their values and staying true to them. As Ponce de Leon notes, even if public opinion changes or politics shift, a company’s commitment to DEI is only as strong as its willingness to sustain it over time.
Source: https://fortune.com/2025/02/20/companies-that-ax-their-dei-programs-now-could-destroy-their-reputation-for-years-to-come-according-to-a-new-study