Pressure Mounts: Are Top Companies Dropping DEI Policies?

Pixel-Shot / shutterstock.com
Pixel-Shot / shutterstock.com

A group of state officials and business leaders is asking Fortune 1,000 companies to rethink their workplace policies on Diversity, Equity, and Inclusion (DEI). This request comes during a heated debate between Democrats and Republicans about these policies, which are common but controversial in large companies.

Many companies have started to reverse or abandon their DEI initiatives. Jeremy Tedesco from the conservative legal group Alliance Defending Freedom pointed out that major companies like Home Depot, Lowe’s, Ford, and Toyota have backed away from their DEI programs due to what he calls a “divisive and discriminatory ideology.”

Arizona Treasurer Kimberly Yee spearheaded one letter, which was signed by officials from 15 states. They called on businesses to end their DEI policies, which range from simple warnings against racism to more aggressive stances against “whiteness” and support for transgender issues. The letter cites surveys showing that many employees share negative views about DEI programs. For instance, a survey by Ipsos found that 40% of employees believe DEI initiatives create division rather than unity among coworkers.

Additionally, a group of business leaders and investors managing over $60 billion sent a similar letter last Friday. They argue that DEI programs suppress differing opinions, labeling them as “privilege” or “internalized” biases. They believe this approach replaces genuine diversity of thought with a single, rigid workplace culture that reduces individuals to just their group identities.

These letters were written in response to a message sent earlier this month by 49 House Democrats. Led by U.S. Representative Robert Garcia from California, the original message criticized business leaders for cutting back on programs that foster unity. It warned that such actions could lead to losing customers. Garcia stressed that inclusion is a key American value and is good for business. He argued that it creates safer workplaces without sacrificing quality or profits.

The states listed in the recent anti-DEI letter include Alaska, Arkansas, Idaho, Louisiana, Kansas, Kentucky, Mississippi, North Carolina, North Dakota, Nebraska, Oklahoma, South Dakota, South Carolina, and Utah.