Nike investigated over allegations of discrimination against white employees
The EEOC is investigating Nike over allegations of discrimination against white employees and cracking down on its diversity, equity and inclusion policies.
President Donald Trump is taking credit for a wholesale retreat by companies from diversity, equity, and inclusion efforts. New research suggests he may be right.
Catalyst and the Meltzer Center on Diversity, Inclusion, and Belonging at New York University School of Law found that the administration’s efforts, not increased legal oversight, have been the driving force behind the rollback so far.
In the face of increasing political and regulatory pressure, 51% of federal contractors have reversed their DEI efforts in the past three years, according to a survey of 2,000 employees and managers.
With the 2023 Supreme Court ruling invalidating affirmative action in college admissions, employers now realize that DEI programs are likely to be the next big thing. But despite a growing number of lawsuits challenging the legality of some diversity programs, 52% of organizations without federal contracts are stepping up their efforts.
“While we expected there to be a difference in outcomes between federal contractors and non-federal contractors, we did not expect there to be such a disparity,” said David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion and Belonging at New York University Law.
Companies have become more cautious since President Trump took office on a campaign promise to restore equity in the workplace by bulldozing through “woke” DEI policies that he says harm men and white Americans.
One of his first executive orders required federal contractors to certify that they are not operating “programs that promote DEI in violation of applicable federal antidiscrimination laws.”
Fearing investigations and the loss of government contracts, dozens of the nation’s largest companies, from McDonald’s to Facebook owner Meta, have scaled back their diversity programs.
Pressure to align with the president’s policies has only increased in recent months. In March, President Trump signed another executive order requiring federal agencies to prohibit discriminatory DEI practices. Under this directive, the Department of Justice is tasked with expediting the review of these cases.
Recent findings “suggest that the backlash is largely driven by the actions of the current administration and its relentless crackdown on federal contractors, meaning the political environment is a bigger factor than the legal environment,” Glasgow said.
The anti-DEI push hasn’t fared much better in court. In February, a federal court rejected a lawsuit by the Missouri attorney general’s office alleging that Starbucks’ diversity practices were unlawfully discriminatory. The 10th Circuit Court of Appeals this week ruled against a white correctional officer who claimed the Colorado Department of Corrections’ DEI training created a racially hostile work environment.
Glasgow said the Trump administration has been more effective and has assured him that “DEI-related activity will continue to be significantly suppressed for at least the next two-and-a-half years.”
Inclusion work continues to take place behind the scenes, the study found. More than half of employees say their employer has suggested they back off, but only a third have reversed their efforts.
DEI proponents argue that companies maintain programs by adapting to changing legal and political landscapes. They open mentorship and coaching programs, job training activities, fellowships and internships to everyone, rather than restricting them to specific groups.
Half of employees and leaders surveyed want inclusion efforts to benefit all employees, and one-third want to prioritize the needs of marginalized employees in the workplace.
Catalyst and the Meltzer Center for Diversity, Inclusion, and Belonging at New York University School of Law recommend “earned universalism.” This is a legal and effective approach that involves treating everyone equally while devising “identity-neutral” solutions to remove systemic barriers and biases.
