Corporate Diversity Program Retrenchments Continue Amidst Scrutiny
Introduction:
The recent withdrawal from corporate diversity, equity, and inclusion (DEI) initiatives continues, with Citigroup (C) and PepsiCo (PEP) announcing the rollback of their policies.
Citigroup:
* Eliminated requirement for hiring managers to consider diverse candidates.
* Restructured "talent management and engagement" team from "diversity, equity and inclusion and talent management."
* CEO Jane Fraser cited a changing environment and the need to "reflect the skills and perspectives needed to succeed."
PepsiCo:
* Discontinued the role of DEI officer.
* "Sunsetted" DEI workforce representation goals.
* Expanded supplier base.
* Plans to introduce a "growth inclusion" strategy aligned with the company's history of inclusivity.
Other Companies:
* Meta (META), Walmart (WMT), McDonald's (MCD), Ford (F), and Target (TGT) have also scaled back DEI efforts.
Legal and Regulatory Factors:
* 2023 US Supreme Court ruling (Students for Fair Admissions v. President and Fellows of Harvard College) against race-conscious admissions programs.
* Trump-era executive order ending federal DEI programs and prohibiting "illegal private sector DEI actions."
Goldman Sachs and JPMorgan Chase Adjustments:
* Goldman Sachs: Removed requirement for IPO clients to have women and minorities on boards of directors.
* JPMorgan Chase: Reduced references to DEI in its annual report, citing legal changes and a focus on reducing bureaucracy.
* CEO Jamie Dimon questioned the effectiveness of certain DEI programs and expressed concerns about wasted funds.