The Shifting Landscape of Diversity, Equity, and Inclusion in the US

From DEI to "Belonging": A Change in Name, or a Change in Heart?

In Union County, South Carolina, Elise Ashby, director of a local non-profit, is fighting food insecurity. Her organization delivers boxes of fresh produce to residents in a county grappling with poverty and limited access to supermarkets. In 2023, Ms. Ashby received a significant grant from the Walmart Foundation, part of a program supporting community-based non-profits led by people of color. This funding was a lifeline, a sign that her work was recognized and valued.

Just two years prior, such programs were commonplace, championed by corporations in the wake of George Floyd's murder and the subsequent reckoning with racial injustice. Today, the landscape is drastically different. Walmart, along with other corporate giants like Meta, Google, and Goldman Sachs, has scaled back its DEI initiatives, signaling a dramatic shift in corporate priorities.

"I cried a little bit," Ms. Ashby recalls, reflecting on the grant. "It was just one of those times where, like, somebody actually sees what you're doing.” Now, the future of such programs, and the communities they serve, hangs in the balance.

The Political Backlash Against "Woke"

This corporate retreat coincides with a renewed political assault on DEI. President Trump has aggressively targeted DEI programs, directing the federal government to dismantle its own initiatives and investigate private companies and academic institutions suspected of engaging in "illegal DEI." This has created a chilling effect, prompting organizations to re-evaluate their commitments to diversity.

The backlash against DEI is rooted in conservative opposition to critical race theory and a growing narrative that such programs are discriminatory against white Americans. Social media campaigns and activist pressure have further amplified these concerns, leading to boycotts and policy changes at major corporations like Anheuser-Busch.

The Evolution of Diversity Initiatives: From Affirmative Action to DEI and Beyond

DEI programs have a long and complex history, evolving from the civil rights movement of the 1960s. Initially focused on addressing the legacy of slavery and Jim Crow laws, these initiatives later expanded to encompass gender equality, LGBTQ+ rights, and broader inclusion efforts. In the corporate world, DEI often emphasizes diversity as a business imperative, aiming to address disparities and create more representative workforces.

The Black Lives Matter movement in 2020 spurred a surge in corporate DEI commitments. However, this momentum was quickly met with a conservative backlash, questioning the effectiveness and fairness of these programs.

Martin Whittaker, CEO of JUST Capital, observes that some companies that embraced DEI during the Black Lives Matter movement are now backtracking, having initially acted to "look good."

“Things that matter are measured, and when you stop measuring them, they stop happening,” says Michelle Jolivet, author of *Is DEI Dead?: The Rebranding of Inclusive Organizations*. “Then you do stop making progress.”

Measuring the Impact: Does DEI Actually Work?

The efficacy of DEI programs is a subject of ongoing debate. Some research suggests that certain initiatives, such as diversity training, can be counterproductive, fostering hostility and resistance among employees. Other studies indicate that DEI can be effective when focused on specific, measurable changes, such as revising performance evaluation criteria.

Siri Chilazi, a researcher at Harvard University, argues that systemic inequalities will not correct themselves without intervention. She points to studies demonstrating persistent racial and gender biases in hiring practices. However, she also acknowledges that many current DEI programs lack clear metrics and measurable outcomes.

Mrs. Chilazi also highlights the lack of data measuring the effectiveness of corporate funding for DEI initiatives: "This is an area where we actually don't have good research," she says.

The Future of Inclusion: Rebranding and Reframing the Conversation

While some corporations may be abandoning DEI in name, many are simply rebranding their efforts. Walmart, for example, has renamed its chief diversity officer to chief belonging officer. This shift in language reflects a desire to avoid legal challenges and political scrutiny while continuing to pursue inclusion goals.

However, this rebranding raises concerns about the future of these initiatives. Will a change in terminology lead to a genuine commitment to diversity and inclusion, or simply a superficial re-packaging of existing practices?

Elise Ashby's experience underscores the uncertainty surrounding the future of DEI. She fears a return to the days of struggling to secure funding and facing the systemic barriers that disproportionately impact Black-owned businesses. “Am I concerned about the future? Absolutely.”