CEOs are feeling unburdened by what has been (as Kamala Harris would put it) — that is, the diversity, equity and inclusion policies that were de rigueur under the Biden administration.
Just a week after President Trump signed an executive order banning DEI programs in the federal government, some executives are privately rejoicing that it could give them cover to roll back the most progressive policies at their companies.
“It’s back to the future — meritocracy is back,” one executive at a publicly traded company said. “We aren’t going to have to base hiring on diversity, but competence.”
This person added that, for the first time in over a decade, he believes he will be able to make the case to his board that DEI doesn’t need to be a priority.
“Executives see this as an opportunity to get away from these woke policies because, in reality, a competent CEO has realized that DEI has lost money,” Robby Starbuck told NYNext.
The corporate activist has leveraged his large following on X to pressure brands such as Tractor Supply, John Deere, Harley-Davidson, Ford and Nissan to alter or eliminate their DEI initiatives. Following a November campaign by Starbuck, Walmart pulled out of the Human Rights Campaign’s Corporate Equality Index and vowed not to carry chest binders marketed to children.
Organizations like the National Center for Public Policy Research and the National Legal and Policy Center have also begun waging public opinion wars against woke policies. And, during a virtual speech to Davos attendees last week, President Trump slammed Bank of America and Chase for alleged discrimination against conservatives — a move that could nudge the his supporters to bank elsewhere.
It’s not just boycotts making CEOs weary. The legal implications of continuing certain DEI policies, such as hiring quotas, are also a growing concern, as the Department of Justice could potentially launch investigations or even lawsuits if companies violate anti-discrimination laws.
While the 2023 Supreme Court decision in Students for Fair Admissions v. Harvard was focused on ending race-based affirmative action in college acceptance, it has also spurred discussions on how similar principles might apply to employment practices under Title VII, sources add.
Over the last few months, some CEOs have very publicly walked back their DEI and their Environmental, Social and Governance (ESG) focus — with Larry Fink of BlackRock even pulling his company out of a notable UN climate initiative. Still others have defended the practice. When asked in a CNBC interview about potentially being targeted by the likes of Starbuck, JPMorgan’s Jamie Dimon said: “Bring them on.”
But Starbuck believes that is because Dimon, and other executives like him, simply aren’t aware of how progressive DEI policies have become. Starbuck is also pushing to set up a debate with Dimon on CNBC’s morning show “Squawk Box” to hash it out on air, he added.
“Executives’ immediate reaction is to defend their company … most of them have no clue what is going on — that Ibram X. Kendi is recommended reading.” According to Starbuck, companies like John Deere and Harley Davidson pushed employees to read Kendi’s book “How to Be an Antiracist” to employees — and even boasted about it on their corporate websites.
“There is no return on investment of painting your business as political … and now there are possible legal liabilities for violating civil rights law.” Starbuck said. “[CEOs] may not have wanted to confront these policies but now they will be forced to be.”
This story is part of NYNext, a new editorial series that highlights New York City innovation across industries, as well as the personalities leading the way.
