On Monday, Jan. 20, shortly after returning to office, former President Donald Trump issued an executive order dismantling Diversity, Equity, and Inclusion (DEI) initiatives at the federal level. The order, titled “Ending Radical And Wasteful Government DEI Programs And Preferencing,” instructed federal agencies to shut down DEI offices, cancel related staff training, and place DEI personnel on paid leave with the eventual goal of layoffs.
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According to the Associated Press, federal agencies, including the Office of Personnel Management, the State Department, and the Department of Homeland Security, have already begun removing DEI-related resources from their websites. Pages that once hosted DEI information now display “404 error” messages or notes explaining the removal. These changes underscore the sweeping nature of the executive order and its immediate impact on federal operations.
Corporate America Follows Suit
This rollback marks a pivotal moment for Black entrepreneurs and minority-owned businesses. Many relied on DEI initiatives to overcome systemic barriers. While the executive order specifically targets federal programs, it reflects and amplifies a broader cultural shift. And that very shift is already taking root in corporate America.
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As federal policies move away from diversity-focused initiatives, many corporations have followed suit, scaling back their own DEI commitments. These efforts, once designed to provide access to resources, funding, and opportunities for historically underrepresented communities, are now being dismantled. And the effects reverberate across industries, leaving Black founders and businesses particularly vulnerable.
Affirmative Actions
Time magazine noted that the executive order builds on years of conservative opposition to DEI initiatives, fueled by the Supreme Court’s 2023 decision against race-based affirmative action and public backlash on social media and in Congress.
In response, several major corporations have scaled back or eliminated their DEI programs. While companies such as Amazon, Meta, Walmart, and McDonald’s have scaled back others remain committed to their established programs.
Leaders at companies like Goldman Sachs, Costco, and JPMorgan Chase & Co have reaffirmed their support for DEI efforts despite growing pressure from anti-DEI activist shareholders proposing rollbacks of such policies.
For example, Costco’s Board of Directors unanimously opposed a proposal from the National Center for Public Policy Research, which requested the company to assess and report on potential risks associated with its diversity and inclusion efforts, as detailed in a Jan. 23 shareholders meeting statement.
Targeted Challenges
Retail giant Target, once lauded for its diversity goals, announced in an internal memo that it would conclude its three-year DEI goals. The memo stated that Target’s supplier diversity team would “evolve” into “Supplier Engagement” to better reflect its global procurement strategy, which now includes a broader range of suppliers. For Black and minority-owned brands that fought for years to gain shelf space at Target and similar retailers, this change represents a significant setback.
The dismantling of DEI initiatives is creating uncertainty for Black entrepreneurs, who have worked tirelessly to gain visibility and market access. These initiatives were not just symbolic—they provided a tangible pathway to resources and growth for minority-owned brands.
Tabitha Brown, whose brand Donna’s Recipe is featured in Target stores, shared a heartfelt message about the risks posed by dismantling DEI initiatives. She expressed concern about consumer boycotts of corporations like Target, warning that such actions could inadvertently harm the very businesses they aim to support.
“If we all decide to stop supporting said businesses… you take all our sales, and those companies get to say, ‘Oh, your products are not performing,’ and they can remove them from the shelves,” Brown explained.
She urged strategic consumer action to protect the progress made by Black-owned brands.
Similarly, Chantel L. Powell, founder of Play Pits, an all-natural deodorant brand, took to Instagram to process the potential impact of these changes. “How is this going to affect Play Pits?” asked supporters in a video. Sharing her frustration with the rollback of DEI programs, Powell emphasized that small, bootstrapped brands like hers are at a disadvantage compared to larger conglomerates with massive marketing budgets. However, she later shared her gratitude for the overwhelming support she received from her community, noting that it gave her the strength to continue.
Consumer Power: A Call to Action
The economic power of Black consumers—estimated at $1.6 trillion—remains a critical tool in safeguarding the future of Black-owned businesses.
Rather than boycotting corporations outright, advocates like Brown and Powell emphasize the importance of targeted support. By continuing to purchase products from minority-owned brands, consumers can demonstrate demand and ensure these businesses remain competitive.
Looking Ahead
For Black founders, the path forward is uncertain but not without hope. Black founders have always thrived in the face of systemic barriers. This moment, while daunting, is another call to action—one that requires the collective effort of entrepreneurs, allies, and consumers to ensure that the progress made toward equity is not erased but strengthened for generations to come.
References:
- Associated Press: Federal agencies removing DEI resources following Trump’s executive order.
- Time Magazine: Trump’s actions against DEI and their historical context.
- CNN: Amazon, Meta, and others scaling back DEI programs.
- Target memo regarding changes to supplier diversity goals.
- Statements from Tabitha Brown on Instagram about the impact on minority-owned brands.
- Statements from Chantel L. Powell of Play Pits on Instagram regarding challenges faced by small businesses.
