Companies stand up against Trump on Day
Companies like Costco and Levi reject the White House’s position on diversity, equity and inclusion.
For months, the threat of President Donald Trump stripping federal contracts from businesses supporting diversity, equity and inclusive initiatives has driven a sharp U-turn in corporate America, with the private sector rushing to distance himself from policies he once trumpeted.
But new research tracking changes in DEI within the country’s biggest businesses shows that the pace is slowing down as the Trump administration pivots towards other policy priorities such as immigration and tariffs.
The backlash against the DEI took a surge in the 2024 presidential election, but reached a hot pitch when Trump took office. His early executive orders were intended to eliminate “illegal DEIs” in the federal government and the private sector.
“President Trump’s return to the office has resulted in earthquake change in risk calculations for companies with DEI commitments,” said Joanna Piacenza, vice president of thought leadership at Gravity Research, who advises businesses on social, political and reputable risks. “Unlike previous backlash driven by online activists focused on reputation and social media pressure, the Trump administration has given us a policy lever and legal authority.”
Between June 2024 and May 2025, most of the policy shifts tracked in the Gravity Research Study on Fortune 1000 companies and Sports Leagues – 80% – occurred after Trump took office. However, after his push after taking office, the rates fell significantly, Piacenza said.
For example, 11 companies announced they had been released in February. They announced that they would make major changes to diverse employment goals and the targets of the workforce and executive representatives, but only two made those changes in May.
“The slowdown appears to reflect a ‘waiting’ attitude from businesses,” Piacenza said. “As these initial policy adjustments are now on the move, it appears that businesses are reevaluating further changes.”
Companies have changed these DEIs
Companies rushing to make changes after the inauguration were the most contractors and highly regulated industries. Almost three-quarters of companies that made changes to their DEI after their inauguration were federal contractors, according to a survey.
According to Gravity Research, the most important of the DEI changes created by companies was about recruitment and representation goals. The company also rebranded DEI’s efforts under more anodine names, such as “inclusion and belonging,” and after Trump took office, the title of Chief Diversity Officer has been changed to “Vice President of Talent Strategy” or “People Engagement Head.” References to “DEI” and related terms have also disappeared from corporate reports, regulatory submissions and websites.
Few companies have dismantled employee resource groups, but they emphasized that they are open to all employees and are consistent with business priorities such as professional development and networking. “The issue could resurface as a reputational risk in the coming months as federal agencies signal that ERGs can be investigated as discriminatory,” the Gravity Research Study said.
Day retreat or “head fake”?
Gravity research finds that companies have reconstructed from Day but have not retreated. 80% confirm their ongoing commitment to “inclusion,” “attribution,” or “accessibility.”
Carissalomero, co-founder and managing director of the Cultural and Inclusive Platform Paradigm, business leaders have gained confidence in the challenges faced by companies retreating at DEI, including declining sales, reduced market caps, reduced market caps, and struggles.
The guidance issued by the Equal Employment Opportunity Committee in March reassures businesses that the Trump administration will not view their strategy as “illegal DEIs.”
Companies are also facing increasing pressure from pro-DEI activists who have been fitted with a series of boycotts protesting Dei’s rollback. It is unclear how much of these boycotts have had on revenue, but Target cited the decision to end some diversity policies as contributors to a sharp quarter pullback in consumer spending.
“Most companies know that creating fair processes that advance a diverse workforce, the best talent, and an inclusive environment where different people can work together effectively is essential to long-term business success,” Romero said. “These efforts are not “good to have.” A strategic lever for innovation, performance and resilience. ”
If the Trump administration tightens Day’s enforcement, companies can quickly change songs, Piacenza said. Last week, the Labor Bureau’s Federal Contract Compliance Programs Office issued a letter inviting federal contractors to voluntarily disclose the measures they took to “decline” the DEI program.
DEI critic Paul Chesser, like shareholder activist, has made superficial changes to its policies, accusing companies of surveillance of the Trump administration and “snooking their customers and shareholders,” and maintaining their commitment to the behind-the-scenes diversity program.
Chesser, director of the National Legal and Policy Center’s Corporate Integrity Project, calls it “providing headfakes across the company, giving the impression that companies are eliminating DEIs.”
“Companies that recognize that outside parties have only made cosmetic changes could face new scrutiny,” Piacenza said.
