As high-profile brands like Target, Walmart, McDonald’s and Meta scale back their DEI commitments—sparking backlash and boycotts—many companies are quietly holding firm despite political and legal challenges.

According to a new Resume.org survey of 1,000 companies, only 5% have eliminated DEI programs, while 22% are increasing their DEI budgets. This suggests that many businesses continue to view DEI strategies as essential to long-term success, even as external pressures mount.

Apple, Costco, e.l.f. Beauty, and Goldman Sachs are among the corporations doubling down on DEI commitments, defying shareholder pressure and potentially widening the rift between corporate America and Donald Trump, who put an end to federal DEI programs just days into his presidency.

In turn, opponents are ratcheting up pressure on those companies to think again. Last week, Republican attorneys general from 19 states called on Costco to get rid of the DEI policies “that courts and businesses have rejected as illegal,” and say within 30 days whether or not it plans to do so. Goldman Sachs and JPMorgan Chase are facing similar pressure from anti-DEI shareholders and activists, including the likes of the Heritage Foundation.

Communicators, however, say they are stressing the importance of organizations not only maintaining their DEI commitments, but going public with it, too.

“Brands that aren’t backing away from DEI need to speak up and own their positioning,” says Brennan Nevada Johnson, CEO of Brennan Nevada, Inc. “This is the time to communicate why you are standing firm on your values, culture, and obligations.”

“You should engage and interact with your community, customers, stakeholders, and explain why you are sticking with DEI so you can separate your brand from those like Target, Meta and Walmart who jumped on the bandwagon in 2020 making lofty DEI promises after George Floyd was murdered, but are now dismantling them altogether,” Johnson said. “This will show your customers and those engaged with your brand that you are authentic and don't give in to bullies.”

But the reality is most companies don’t have the power or clout of corporate America’s largest and loudest DEI defenders like Microsoft or JPMorgan Chase.

Fearing reprisal, organizations have become increasingly reticent to publicly own their diversity commitments since the Supreme Court ruling against affirmative action in 2023.  The question now is how many of those companies will have the wherewithal (or gumption) to even quietly continue their programs amid increased pressure to do away with them under the Trump administration.

“Over the past year, many corporations have scaled back diversity, equity and inclusion initiatives, and if January is any indication, that trend is unlikely to slow,” said Catherine Merritt, founder and CEO of the agency Spool. “If anything, it is fair to expect a more rapid succession of rollbacks.

"What remains to be seen is whether these moves signify a fundamental shift in corporate values or serve as a strategic response to political and financial pressures," Merritt said. "While some corporations continue to invest in diverse hiring and supplier partnerships discreetly, their reluctance to publicize such efforts raises questions about whether these shifts are more about perception management than actual policy changes."

For companies that have backtracked, the consequences have been swift and costly. Target, for instance, faced significant boycotts after scaling back DEI initiatives, resulting in reputational damage and financial losses.

Other companies are making less glaringly public but still profound moves behind-the-scenes. Vanguard revised its guidance for US corporate boards by removing specific language that encouraged the inclusion of women and minority directors.  Meanwhile, 29 S&P 500 companies removed DEI-linked executive pay incentives in 2024, up from 20 in 2023, according to WTW.

Still many companies recognize the tangible benefits of maintaining DEI commitments — a premise backed up by data time and again.

Research from McKinsey "makes it increasingly clear that companies with more diverse workforces perform better financially," with corporations identified as more diverse and inclusive are 35% more likely to outperform their competitors. Diverse companies are also 70% more likely to capture new markets, and diverse teams are 87% better at decision-making. A report from Korn Ferry and the Global Black Economic Forum found that organizations committed to DEI experience a 19% increase in innovation revenue, with inclusive teams 75% more likely to successfully execute ideas.

The argument for DEI also extends to business performance, as research consistently shows that diverse teams drive better outcomes. According to Boston Consulting Group, companies with above-average diversity in leadership see innovation revenue 19% higher than those with less diverse teams. Additionally, inclusive workplaces experience 50% lower attrition rates, enhancing overall stability and efficiency, according to data from more than 27,000 employees in 16 countries.

“There are mountains of data to support the idea that inclusive and environmentally responsible companies are more profitable. But you don't need data to understand that a diverse, mindful, and collaborative environment is a breeding ground for dedication, focus, and creativity. I can't imagine instilling and honoring these values in the workplace and it not benefiting any business in ways you can and can't quantify,” said Nikki Festa O’Brien, CEO of Greenough Communications.

“But it's the quantification piece that companies are struggling with. The result will manifest in churn – in employees, customers, partners, and, dare I say, reputation. And what companies are losing will be 10 times harder to regain,” she said.

Helen Shelton, global chief diversity officer at Finn Partners, underscores that DEI commitments are integral to brand longevity and consumer trust, but noted trepidatious companies going through perfunctory motions risk losing credence with  both sides. 

“You cannot simply create and place ads with diverse consumers on the one hand and then pull your DEI commitment to that consumer sector and not expect backlash,” says Shelton. “It’s about authenticity, mutual respect, and recognizing the value of all consumer voices.”

Merritt, however, said she expects to see brands take more nuanced approaches to DEI given the wild swings in the political climate and what's at stake financially.

"DEI initiatives are more likely to evolve than disappear entirely. Language may shift to be less overt in an effort to remove the bullseye from corporations’ backs, while actions and values continue to uphold the underlying principles," she said.

"Time will tell whether these corporate shifts represent temporary adjustments or a lasting realignment. As more organizations adjust their recruitment policies, internal operations, and public messaging, their actions rather than their statements will ultimately determine the future of DEI in the private sector."

Mike Paul, CEO of Reputation Doctor, warns that companies should think beyond short-term pressures when determining the future of their DEI strategies.

“My advice to leading corporate boards and C-suite executives we counsel is to live their values and the values of their corporations, which are not just logos. Their brands are the many people. The many stakeholders who work for them, partner with them, and buy their products and services worldwide," Paul says.

He cautions that a reactionary approach to DEI—scaling back initiatives out of fear rather than strategy—could do more harm than good in the long run.

“A four-year decision to restrict or cancel DEI policies based on fear could have reputations and brands in crisis for the long term and also have long-term losses in market share and gross revenues,” Paul adds. “Value matters. Ethics matter. All people matter in the war for brand loyalty and long-term trust.”