Corporations Retreat from Diversity Programs Amid Mounting Scrutiny
Citigroup (C) and PepsiCo (PEP) have announced revisions to their Diversity, Equity, and Inclusion (DEI) policies, reflecting a broader industry trend amidst increased scrutiny from US authorities.
Citigroup
CEO Jane Fraser has eliminated the requirement that new hires be selected from diverse candidate pools. The "Diversity, Equity and Inclusion and Talent Management" team has been renamed "Talent Management and Engagement."
PepsiCo
CEO Ramon Laguarta has announced the elimination of the dedicated DEI officer, the sunsetting of DEI workforce representation goals, and the expansion of the supplier base. The company plans to implement an "Inclusion for Growth" strategy that aligns with its commitment to fostering an inclusive workplace.
Anti-DEI Activism
Anti-DEI activist Robby Starbuck claims that PepsiCo's policy changes were prompted by his plans to publish an article on the company's "woke" initiatives.
Other Notable Retreats
Several prominent US businesses have made similar withdrawals from DEI initiatives, including Meta (META), Walmart (WMT), Ford (F), McDonald's (MCD), John Deere, and Target (TGT).
Legal and Policy Influences
This trend follows the 2023 US Supreme Court ruling in Students for Fair Admissions v. President and Fellows of Harvard College, which prohibited race-conscious admissions programs. Additionally, President Donald Trump's executive order ended federal DEI programs and sought to combat "illegal private sector DEI actions."
Goldman Sachs and JPMorgan Chase
Goldman Sachs (GS) has dropped the requirement for IPO clients to include women and minorities on their boards.
JPMorgan Chase (JPM) has removed most mentions of DEI from its annual report and acknowledges potential criticism for its DEI initiatives.
CEO Perspectives
JPMorgan CEO Jamie Dimon has expressed skepticism about certain DEI programs and emphasized his desire to reduce bureaucracy.