The bet on diversity and inclusion It has been one of the big trends in the business ecosystem in recent years. However, in recent months many large companies, including McDonald’s, Walmart or Toyota, have reversed their DEI programs (diversity, equity and inclusion) in light of a cultural, social and political change in the United States.

The electoral victory of donald trump in the last elections, and which will result in his inauguration on January 20, has been the culmination of a shift towards conservatism that has been brewing in recent times. Some of the companies that have now modified their diversity policies have experienced pressure, especially on social networks, by conservative segments alleging that these policies are discriminatory.

Furthermore, some of the companies cite among their arguments court decisions that have established that some of the measures have led to positive discrimination towards certain historically marginalized social groups. Specifically, they refer to the ruling in the lawsuit by the Students for Fair Admissions organization against Harvard University, published in June 2023, which considers that positive action based on race as a way to maintain a diverse student body violated the Constitution of Harvard. the United States.

Specifically, DEI policies gained ground as a way to promote access to education or work and provide equal opportunities for all. Many of the programs were adopted in 2020 in response to citizen demands following the murder of George Floyd. A large part of society demanded greater racial equity and encouraged many companies to redouble their efforts.

However, certain ideological discourses that have increased their presence in recent times have pressured and pushed many organizations to reverse their initiatives, and companies They have given up trying to avoid reputational or image conflicts.

Companies that regress in diversity

This same week McDonald’s has communicated some changes to its diversity, inclusion and equity programs. Among them, it has indicated that it will withdraw specific goals – so-called quotas – to achieve diversity at senior leadership levels and that it will end a program that encourages its suppliers to develop diversity training. Additionally, the company’s diversity team will be renamed the Global Inclusion Team.

For its part, Walmart said in November that it is ending racial equity training programs for staff and evaluating programs designed to increase provider diversity. To date, Walmart has worked to increase the number of suppliers that are at least 51% owned or managed by women, minorities, veterans, or LGBTQ people.

The supermarket chain is also reviewing its ties to Pride and certain products marketed to children. In addition, it will not expand its Center for Racial Equity, a philanthropic commitment it made five years ago and to which it has allocated nearly $100 million to reduce racial gaps in education, work, health or justice.

Last August ford It also announced changes to its policies. These included the decision to stop participating in external cultural surveys and an annual Human Rights Campaign survey that measures workplace inclusion of LGBTQ+ employees.

J.Ohn Deere, Tractor Supply, Brown-Forman, Harley-Davidson or Morlson Coors are other companies that have also backed down on their efforts to promote diversity and inclusion. The elimination of quotas, the end of the presence of companies in studies on diversity, or the suppression of the identification of employee pronouns, or cutting budgets and teams destined for DEI are some of the measures that have been implemented under way.

It is also expected that the cooling of efforts on diversity and inclusion will continue, in both the private and public sectors, under the new administration of Donald Trump and institutions led by conservative profiles.

Critical voices against the rectification of companies in matters of DEI point out that organizations run the risk risk of losing talentespecially the one they attracted with their measures favorable to diversity; as well as key partners and collaborators for their businesses. On the other hand, the decline in diversity also could be reflected in communication and marketing and, consequently, in the representation of the users that companies intend to impact.

The end of DEI in 2025?

Despite everything, DEI policies will not die in 2025, although it will be a year in which a gap is created between those companies that are backing down and those whose commitments will not be altered. Among the latter, it is worth mentioning the case of the supermarket chains Costco, whose board of directors has urged shareholders to vote against a proposal that asked the company to evaluate the risks associated with its DEI policy.

The move demonstrates Costco’s confidence in its policies. The company believes that diversity plays a fundamental role in aspects such as its shopping experience or your sustainability goals, particularly in workforce diversity and supply chain equity.
Costco has a chief diversity officer and a supplier program that prioritizes partnerships with small, diverse businesses; and donates to organizations that support minority communities.

Costco’s positioning stands out among a growing trend that is backing down on diversity. The chain considers that equity and inclusion is a fundamental strategy to meet expectations changing needs of its clients and its teams, it does not consider it an expense, but rather an essential aspect of its way of connecting with the market and society.