After what was expected to be a close race turned into a red wave, Donald Trump won the presidency for a second time. And as Americans wonder what to expect from his administration, corporate America in particular is wondering where diversity, equity and inclusion goes from here.
This year has already seen a growing backlash against DEI efforts, and many large companies have announced plans to alter or dismantle their programs. Ford told employees in an internal August email that it will roll back DEI policies due to the “external and legal environment related to political and social issues.” Lowe’s, John Deere, Tractor Supply, and Harley-Davidson have all also pulled back on previous attempts to increase diversity at their organizations, with the latter two noting a desire to appeal to their more conservative-leaning customers.
Donald Trump appointed Supreme Court justices who voted to overturn affirmative action last year. He has vowed to focus on “anti-white feeling,” and during his previous term he banned racial sensitivity training for federal government and contract workers. When asked if it was acceptable that multiple Republican leaders called Vice President Kamala Harris a “DEI hire,” Trump replied: “I really don’t know. Could be. Could be.”
A U.S. leader opposed to corporate diversity efforts, on top of a pre-existing cultural backlash, is no doubt dominating HR and C-suite discussions this week. Fortune spoke with academics, lawyers, and policy experts, to better understand what a Trump presidency means for DEI efforts moving forward. Many said that they anticipate legal battles will only get worse, and corporate America will become more divided. But they also emphasize that not everyone will roll back their policies because of a Trump presidency—companies just have to fundamentally understand what their position is, and be ready to defend it.
“I do think some companies are going to start to use the rhetoric we’ve heard from Trump over the last year to step away from some of these things,” Paul Wolfe author, and former CHRO at Indeed, Match.com and Conde Nast. “I think this is another thing that will only get harder for DEIB professionals and HR professionals to deal with.”
Get ready for more legal battles
The legal tightrope companies have been walking for the last couple of years is likely to get more precarious under the Trump administration.
After the Supreme Court ended affirmative action in June of last year, right-wing activist groups across the country began filing complaints and lawsuits against companies, governments, and venture capitalists for their DEI-related programs. America First Legal Foundation a conservative non-profit led by former Trump adviser Stephen Miller, has filed hundreds of lawsuits in recent years, from EEOC complaints to amicus briefs, all aimed at reversing DEI. Miller himself is likely to return for the second Trump administration.
Legal experts say the outcome of the new election could bring more funding, power and resources to Miller and other major legal players, including Edward Blum, a conservative litigant who has been working toward the end of race-based admissions in higher education for years
Many companies are already reviewing their policies and doing extensive audits to ensure their programs are on the right side of the law, according to Annette Tyman, an attorney at law firm Seyfarth, who says that trend is “here to stay.” Organizations are also training employees around how to discuss inclusive employment practices to ensure they’re not crossing legal lines.
“We’ve seen cases where public statements about DEI have been twisted into grounds for lawsuits, EEOC claims, or social media backlash,” says Tyman. “As a result, some employers are becoming more cautious about how they talk about DEI, particularly in written external communications.”
Names and strategies might change
Companies who are still considering DEI as part of their larger business strategies might shift the way they present and implement those changes. That could include doing away with standalone teams and chief diversity officer titles, and integrating those roles into other functions.
“I do not believe that people are doing a mass retreat, but a lot of institutions are getting rid of their D&I Director,” Sarah Kate Ellis, CEO and president of GLAAD, a non-profit LGBTQ+ organization, tells Fortune. She adds that she has spoken with hundreds of CEOs who want to integrate DEI “more into the fabric of the company, so that it’s not a standalone part of the company.”
Julie Castro Abrams, CEO of How Women Lead, a non-profit and platform that connects women executives, tells Fortune she has seen this impact DEI positions, but argues it doesn’t signify an overall rollback in diversity efforts. The presence of DEI roles peaked in early 2023, but fell 5% by the end of the year, and dropped another 8% in the first two months of 2024, according to Revelio Labs data shared with The Washington Post. And about 13% of high-level professionals say that chief diversity officers will become extinct over the next five years, according to a 2024 report from West Monroe, a digital services firm.
How the term “DEI” is phrased might evolve, too. SHRM, one of the world’s largest HR networking companies, faced fierce criticism when it dropped the “E,” or “equity,” from its approach to “Inclusion, Equity, and Diversity.” The organization argued at the time that inclusion was the most important facet of their approach, saying in a LinkedIn post that the word equity only sparked “societal backlash and increasing polarization.”
But many advocates are hopeful that most companies will maintain the same DEI commitment they had before the election—even if they approach it in a different way.
“Companies may reassess and reprioritize their efforts,” Jonathan Njus, lead for Expanding Equity at the W.K. Kellogg Foundation, a private organization supporting children and families, tells Fortune. “But the vast majority remain committed to building organizations and creating cultures that will enable them to grow their business and support their workforce.”
Sheryl Daija, CEO and founder of BRIDGE, a DEI trade organization, tells Fortune that companies may drop or add words they fear consumers or shareholders would be offended by. But that doesn’t mean they will go back on their overall mission. “‘Diversity’ is the big trigger for whatever reason, and I think it’s because it’s not been defined well.”
It will create a bigger divide within corporate America
The Trump presidency will likely lead to a deeper split that we’re already seeing: Some companies will renounce their DEI policies altogether, while others will prominently stand up for what they have in place.
“Ten percent are doubling down, and another 10% on the other side are going to use [Trump’s presidency] as a reason to dismantle things. And then you get everybody in the middle,” Abrams says.
Ellis of GLAAD insists that despite several prominent companies rolling back their DEI initiatives this summer, she sees an even bigger push from organizations looking to beef up their policies. “Smart CEOs will see the opportunity and seize it. CEOs that are managing their business out of fear will manage it right into the ground.”
Business leaders should be prepared to defend and advocate for their policies
As anti-DEI efforts ramped up this year, some companies seemed unprepared to weather criticism about their initiatives.
Stephanie Creary, assistant professor of management and organizational behavior at The Wharton School at the University of Pennsylvania, previously told Fortune that companies that rolled back their initiatives under pressure likely didn’t understand them fully, and weren’t prepared to explain and defend them.
Nicole Ridley, head of operations at the Financial Alliance for Racial Equity (FARE), a coalition of organizations working to increase racial diversity and equity in the financial services industry, tells Fortune it’s critical that HR leaders start prepping for potential opposition.
She recommends that companies stay true to their brand and previous commitments, and keep fostering an inclusive environment that attracts top talent. That could mean having some tough conversations with C-suite executives to make a strong case for DEI, and get them on the same page.
“We as DEI leaders across sectors will need to step up now more than ever into advocacy and educator roles to provide the tangible corporate benefit—from business development to bottom-line profits—and ensure that these roles and initiatives are not washed away,” she says.
