Corporate Diversity Programs Face Scrutiny and Rollbacks
Background:
Corporate diversity programs (DEI) have come under increasing scrutiny from the current US administration. In response, several major companies have announced rollbacks of their DEI initiatives.
Citigroup:
* CEO Jane Fraser has removed the requirement for diverse candidate pools in new hires.
* The "diversity, equity and inclusion and talent management” team has been renamed "talent management and engagement."
* Fraser cited changing legal and political environments as reasons for the changes.
PepsiCo:
* No longer has a dedicated DEI officer or workforce representation goals.
* Will expand its supplier base.
* CEO Ramon Laguarta stated that the company will continue to hire and promote based on merit.
Other Companies:
* Meta, Walmart, McDonald's, Lowe's, Ford, Tractor Supply, John Deere, and Target have also made similar retreats from DEI programs.
Legal Context:
* The 2023 Supreme Court ruling in Students for Fair Admissions found Harvard University's race-conscious admissions program to be unconstitutional.
* President Trump's executive order ended federal DEI programs and prohibited agencies from promoting such initiatives in the private sector.
Goldman Sachs and JPMorgan Chase:
* Goldman Sachs has dropped the requirement for IPO clients to have diverse board members.
* JPMorgan Chase has removed most references to DEI from its annual report, citing legal changes and a desire to reduce bureaucracy.
CEO Perspectives:
* JPMorgan Chase CEO Jamie Dimon has expressed skepticism about bias training and DEI spending.
* Dimon stated that the company will accommodate legal changes but also intends to reduce bureaucratic waste.
Implications:
These rollbacks signal a shift away from corporate-backed DEI programs, reflecting changing legal and political landscapes. However, some companies maintain that they will continue to focus on diversity and inclusion within their workforces.