DEI policies brought no financial penalty to firms, study finds
Summary
A new study found that companies keeping their diversity, equity, and inclusion (DEI) programs during President Trump’s second term did not suffer financially compared to those that cut these programs. The research showed no difference in stock returns or revenue between firms maintaining DEI efforts and those that ended them.Key Facts
- The study looked at S&P 500 companies before and after President Trump signed Executive Order 14173 in January 2025, which pushed to reduce DEI programs.
- Some big companies like Apple, Costco, Delta Air Lines, and Dollar Tree kept their DEI policies unchanged.
- Others like Target and Walmart rolled back their DEI efforts.
- Financial performance was measured by “abnormal returns,” comparing expected stock returns to actual returns.
- Firms maintaining DEI showed no financial penalties or revenue loss compared to firms that cut DEI programs.
- Some executives worried about potential government retaliation, such as less favorable treatment or blocked mergers, but this did not show up in financial data.
- Consumer support for companies with DEI programs remained strong overall, despite some cases of backlash like Bud Light’s controversy and Target’s boycott by progressive shoppers.
- A 2025 poll found about 60% of Americans believe diverse workforces help businesses be more profitable and innovative.
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