Corporate America’s DEI standoff: Why major companies are defying the backlash

• Major companies like Costco, Apple, Levi’s and Goldman Sachs rejected shareholder proposals to dismantle DEI programs, despite conservative activism, showing a divide between political rhetoric and corporate governance.
• Large institutional investors (e.g., BlackRock, Vanguard) side with management, signaling Wall Street’s belief in DEI’s financial benefits.
• While DEI opponents cite the Supreme Court’s 2023 race-based admissions ruling, it doesn’t apply to private companies. Meanwhile, Trump-era threats (e.g., federal contract losses) pressure firms like Meta to scale back initiatives.
• Anti-DEI groups use shareholder proposals to pressure companies (e.g., PepsiCo dropping minority representation goals), but many firms rebrand DEI efforts without abandoning core diversity commitments.
• Despite political backlash, 85 percent of executives remain committed to inclusion efforts. The debate hinges on whether corporate America’s stance holds under escalating legal and political scrutiny.

While the populist narrative claims that MAGA-aligned forces are dismantling diversity, equity and inclusion (DEI) initiatives across corporate America, some of the nation’s largest companies are refusing to back down. Shareholders at Costco, Apple, Levi’s, John Deere and Goldman Sachs have rejected proposals to scrap DEI programs, despite pressure from conservative activists.

In recent months, conservative think tanks like the National Center for Public Policy Research and the National Legal and Policy Center (NLPC) have spearheaded shareholder proposals demanding companies abandon DEI policies, citing legal risks and accusations of “reverse discrimination.” At Costco, more than 98 percent of shareholders voted against a proposal to audit DEI-related business risks, with the board arguing diversity strengthens customer satisfaction. Similar defeats unfolded at Apple, Levi’s and Goldman Sachs. (Related: Meta scraps DEI initiatives amid broader corporate retreat from diversity policies.)

Why DEI still has corporate backing

DEI programs encompass hiring practices, leadership training and supplier diversity efforts aimed at increasing representation for women, minorities, veterans and people with disabilities. Critics like Elon Musk, the Tesla and X CEO and close advisor to President Donald Trump, say DEI represents “reverse racism.”

Major institutional investors – BlackRock, Vanguard and State Street – control vast voting shares and typically side with management. Their resistance to anti-DEI measures suggests Wall Street sees financial value in these programs, regardless of political headwinds.

Opponents claim DEI violates the spirit of the Supreme Court’s 2023 ruling against race-based college admissions. However, that decision applies only to public institutions, not private corporations. Meanwhile, the Trump administration has aggressively targeted DEI, pressuring companies like Meta and Target to scale back initiatives under threat of lost federal contracts.

Yet, shareholder votes reveal a disconnect. While some firms quietly retreat, others – like Costco and Cisco – are digging in.

Conservative groups admit their proposals are less about winning votes and more about applying pressure. The NLPC withdrew a similar motion at PepsiCo after the company agreed to drop minority representation goals for managers.

Despite political rhetoric, DEI isn’t disappearing. Companies are rebranding initiatives—dropping the term “DEI” while maintaining diversity hiring pipelines. A Paradigm survey found 85 percent of executives remain committed to inclusion efforts, even if they’re less vocal.

In the coming weeks, Attorney General Pam Bondi is expected to submit a report with recommendations to “encourage the private sector to end illegal discrimination and preferences, including DEI,” including each agency’s list of up to nine civil compliance investigations. For now, corporate America’s message is clear: DEI may be controversial in politics, but in the boardroom, it’s still seen as good business.

The fight over DEI is far from over, but the latest shareholder votes prove corporate America isn’t capitulating to political pressure. One thing is certain: the debate over DEI will define not just workplaces, but the future of American capitalism itself.

President Donald Trump sends DEI to its end. Watch this video.

This video is from the TrendingNews channel on Brighteon.com.

More related stories:

DEI is collapsing across corporate America.

Universities scrap DEI programs amid federal pressure, even in California.

Disney’s mass layoffs signal the collapse of DEI-driven media.

PBS caves to Trump: ‘We have closed our DEI office.’

The eclipse of education: $600M in wasteful DEI grants scrapped.

Sources include: 

Breitbart.com

Edition.CNN.com

USAToday.com

Brighteon.com