Corporate Diversity Initiatives Retreat Amid Scrutiny
Amid intensifying scrutiny from the new Washington administration, major corporations Citigroup (C) and PepsiCo (PEP) have announced revisions to their Diversity, Equity, and Inclusion (DEI) policies.
Citigroup:
* CEO Jane Fraser eliminated the requirement for new hires to be selected solely from diverse applicant pools.
* The "diversity, equity, and inclusion and talent management" team will now be renamed "talent management and engagement."
PepsiCo:
* Eliminated the dedicated DEI officer position.
* "Sunsetted" DEI workforce representation goals.
* Expanded its supplier base.
* Announced an upcoming "inclusion for growth" strategy.
These changes align with a broader trend in corporate America, reflecting a shift away from DEI initiatives following legal and policy developments. The Supreme Court ruling in Students for Fair Admissions v. Harvard College and President Trump's executive order on federal DEI programs have contributed to this retreat.
Other notable companies that have recently adjusted their DEI approaches include Meta (META), Walmart (WMT), McDonald's (MCD), Lowe's (LOW), Ford (F), Tractor Supply (TSCO), John Deere, and Target (TGT).
JPMorgan Chase (JPM) has also revised its communications on DEI. The bank's annual report now contains fewer references to "diversity, equity, and inclusion," focusing instead on potential criticism related to DEI initiatives. CEO Jamie Dimon has expressed concerns about legal constraints and bureaucracy associated with DEI programs.
Alexis Keenan, Yahoo Finance