The D.E.I. Retreat Has Some Notable Holdouts

As discussions about corporate diversity and inclusion (D.E.I.) programs intensify, not every company is retreating from its commitments to these initiatives.https://svtoday.org/

At Costco’s annual shareholder meeting on Thursday, members will vote on a proposal put forward by the National Center for Public Policy Research, a conservative think tank. The proposal calls for an evaluation of the potential impact of diversity programs on the company’s profitability.

Costco’s board strongly defended its D.E.I. efforts, asserting that these programs not only benefit shareholders but also enhance the company’s ability to attract and retain talented employees who contribute to its overall success.

Meanwhile, many corporations have scaled back or become more discreet about their diversity efforts in response to mounting legal challenges, criticism from figures such as Robby Starbuck, or policy changes like an executive order signed this week by former President Trump. The order directs federal agencies to examine D.E.I. practices at publicly traded companies and consider regulatory action against what it deems “discriminatory” activities.

Despite growing opposition, Costco remains one of several major companies that continue to uphold their commitment to D.E.I. initiatives. Many of these firms have long prioritized diversity as part of their corporate values. For instance, Apple recently rejected a similar proposal from the same think tank, emphasizing its dedication to fostering a culture of belonging. Similarly, Microsoft CEO Satya Nadella highlighted in the company’s diversity report that these principles allow the workforce to reflect the global community it serves. Pinterest’s Chief Legal Officer, Wanji Walcott, also noted that diversity benefits both users and advertisers, while JPMorgan Chase CEO Jamie Dimon defended the company’s D.E.I. efforts in a CNBC interview, defiantly stating, “Bring them on.”

The broader implications of the executive order remain uncertain, as companies such as Costco, Apple, and Microsoft have declined to comment. However, critics like Robby Starbuck continue to target D.E.I. programs, describing them as flawed and calling for their removal.

Shareholder proposals have become a prominent tool for activists challenging corporate policies on issues like diversity and climate change, though such proposals rarely succeed. In 2024, the National Center for Public Policy Research submitted anti-D.E.I. proposals to 61 companies, none of which passed, receiving an average of just 2% shareholder approval. Even companies like John Deere and Boeing, which initially resisted these proposals, later reduced their diversity initiatives.

Costco’s rejection of the think tank’s proposal stands out. Beth Young, a corporate governance attorney, attributed this to the company’s longstanding dedication to diversity, which dates back to the hiring of its first chief diversity officer in 2004. “Costco has laid a solid foundation and attracted investors aligned with its values,” she explained.

Other corporations have similarly extensive histories. Apple introduced employee resource groups in 1986 and launched its supplier diversity program in 1993. Pinterest publicly set diversity goals in 2015, and Microsoft has embedded diversity into its mission since its inception.

For companies with a deep-rooted commitment to diversity, these programs are now essential to employee expectations. Employment attorney Vicky Slade noted that organizations recognize the importance of maintaining these values to retain top talent.

Costco is also navigating challenges with its workforce as it faces a potential strike. A union representing 18,000 employees has warned of a strike if contract negotiations fail by January 31.

As the broader backlash against D.E.I. grows, some companies are reaffirming their commitment directly to their teams. Etsy CEO Josh Silverman, for example, reassured employees in an internal memo that the company remains steadfast in its support for diversity, even as others retreat.

This trend is reflected in hiring data. ZipRecruiter reports that job postings for D.E.I. roles fell by 93% in early 2025 compared to the same period in the previous year. Julia Pollak, ZipRecruiter’s chief economist, noted that while initial resistance targeted high-profile companies, the backlash has now spread to smaller firms and less visible industries.

John Rice, founder and CEO of Management Leadership for Tomorrow, sees this as a defining moment. “This period will show which companies are truly committed to diversity and which will use the opportunity to revert to old ways,” he said.