Wall Street Navigates Scrutiny on DEI Programs
JPMorgan Chase (JPM) has scaled back mentions of "diversity, equity, and inclusion" (DEI) in its annual report, reflecting the ongoing scrutiny faced by Wall Street firms over their DEI initiatives. Compared to last year's report, JPMorgan removed four instances of the phrase, including references to "diversity, equity & inclusion centers of excellence" previously touted as part of its "firm culture."
However, the phrase remains present in the report's section on reputation risks, acknowledging criticism from "activists, politicians, and other members of the public concerning business practices…with respect to matters of public policy (such as diversity, equity and inclusion initiatives)."
JPMorgan continues to provide a workforce breakdown by race, ethnicity, and gender, and its "diversity, equity & inclusion centers of excellence" remain in place, according to a spokesperson.
The revisions come amid growing pressure from conservative activists targeting DEI policies at major corporations. Last week, Goldman Sachs dropped its pledge to avoid taking public companies with all-white, male boards, citing "legal developments related to board diversity requirements."
Recent pressure has led to DEI retreats at companies like Meta, Walmart, McDonald's, and Ford. A Supreme Court ruling on affirmative action has also fueled efforts to eliminate diverse hiring practices.
In Washington, D.C., corporate diversity goals face scrutiny. Former President Trump signed executive orders ending federal DEI programs and calling for action against "illegal private sector DEI actions."
Jamie Dimon, JPMorgan's CEO, has highlighted the issue's complexity. He expressed concerns about spending on DEI programs, announcing plans for cutbacks as part of wider efficiency efforts. However, Dimon emphasized that the bank's commitment to Black, Hispanic, and LGBTQ communities remains unchanged.