• President Trump has issued executive orders aimed at dismantling federal diversity, equity, and inclusion (DEI) programs.
• Despite this, some major companies, including Costco and JPMorgan, continue to uphold their DEI initiatives.
• The corporate landscape is seeing a split, with many companies retreating from DEI commitments amid political pressure and changing legal norms.

In a significant shift for corporate policies, the diversity, equity, and inclusion (DEI) sector faces increasing pressures following a series of executive orders from President Donald Trump aimed at rolling back these initiatives. As companies grapple with the implications of these orders, a notable divide is emerging between those reducing their DEI commitments and those standing firm in their support.

On January 20, 2025, Trump signed an executive order titled “Ending Radical And Wasteful Government DEI Programs And Preferencing,” which directs all federal DEI personnel to be placed on leave and sets the stage for significant cuts to DEI initiatives across government entities. Additionally, his January 21 order—“Ending Illegal Discrimination and Restoring Merit-Based Opportunity”—revoked longstanding protections established under previous administrations aimed at promoting workplace equity and affirmative action, notably the Equal Employment Opportunity rules. This move has been interpreted as a shift back toward prioritizing a “colorblind” hiring approach, eliminating several decades of progress in combating workplace discrimination, according to critics.

In the face of these developments, many companies have reconsidered their DEI strategies. For instance, on January 24, Target announced a rollback of its diversity initiatives, which included ending its Racial Equity Action and Change program alongside its participation in external diversity surveys. Corporations like Walmart, Boeing, and Ford Motor Co. have similarly taken steps to reduce their DEI efforts in response to a conservative backlash spurred by Trump’s presidency and broader societal debates regarding race and gender in hiring practices.

However, not all companies are retreating. Despite pressure, Costco shareholders overwhelming rejected a proposal that would have required the retailer to assess the risks associated with its DEI programs, with nearly 98% voting against it, demonstrating strong internal support for its policies. In a similar vein, JPMorgan Chase's CEO Jamie Dimon vocally defended the bank's commitment to DEI at the recent World Economic Forum, arguing that these efforts lead to better business outcomes. He emphasized the importance of diverse perspectives in driving innovation and profitability.

Industry experts indicate that the backlash against DEI initiatives is not merely a political phenomenon, but a sign of deeper contentious societal attitudes towards diversity programs. According to a Time report, while a Pew Research Center survey revealed that a majority of U.S. adults view DEI positively, there is a stark contrast in perspectives depending on political affiliation, with Democrats significantly more supportive than Republicans.

As the corporate world navigates this polarized landscape, some, including CBS News, speculate that Trump's actions could lead to further scrutiny of DEI efforts in the private sector, potentially affecting funding and public perception of companies that remain committed to these initiatives. Proponents of DEI argue that abandoning these programs can erode workplace culture and affect employee morale, stressing that they are critical to retaining diverse talent in an increasingly competitive job market.

In summary, with Trump’s executive orders shaking the foundations of DEI in both the public and private sectors, the corporate landscape is witnessing a vital moment—whether to double down on inclusionary efforts or capitulate to growing political pressures. As the debate continues, the outcomes will likely set important precedents for the future of workplace equality across America. For ongoing updates on DEI policies and their impact, visit Forbes.