July 11, 2025
Catalyst CEO Jennifer McCollum says the data proves just how important DEI is to company culture and the market value as some companies with anti-diversity policies represent more than $13 trillion.
The anti-diversity, equity, and inclusion (DEI) policies don’t appear to be working for a number of major corporations, as data shows their shareholders are going against the embedded anti-DEI practices, AfroTech reports.
Data from the nonprofit Impactivize revealed anti-DEI proposals from big-name corporations, including Costco, Mastercard, Levi Strauss, McDonald’s, Walmart, and Coca-Cola, failed by wide margins as shareholders rejected the claims. The majority of votes came in between 98% and 99%. Nancy Levine Stearns, founder of Impactivize, says the numbers speak loud and clear about where the shareholders stand. “Shareholder voting margins send a clear message: Investors understand that diversity is good for business,” Levine Stearns said.
“The overwhelming tallies are significant, corporate governance experts told me.”
Several companies followed suit with President Donald Trump’s controversial executive order, terminating DEI initiatives throughout federal agencies. Companies like Target and Tractor Supply Co. took the order as a call to dial back on their DEI practices that helped their companies grow in revenue and support. Target suffered after its announcement resulted in a 40-day boycott curated by civil rights and religious leaders Rev. Al Sharpton and Jamal Bryant.
Merck CEO Rob Davis labeled diversity and inclusion as a “strategic imperative,” while Jennifer McCollum, president and CEO of research firm Catalyst, says the data proves just how important DEI is to company culture and market value, as some companies with anti-diversity policies represent a market value of more than $13 trillion. “Inclusion has never been a liability — it’s a competitive advantage and a business imperative,” McCollum said. “The data proves that organizations committed to opportunity and fairness will outperform peers, retain talent, and build lasting trust.”
The Trump administration deemed DEI as “illegal,” which was another reason corporations moved their policies to non-existent. Nearly 16 state attorneys general threatened lawsuits against businesses that failed to stand firm and comply with both federal and state laws. But legal experts say companies — both large and small — don’t need to do anything since it’s very much legal. “DEI isn’t illegal, and it’s not going anywhere,” attorney and Impactivize advisory board member Jon Hymanan highlighted, according to Yahoo Finance.
“Companies backing away from DEI aren’t protecting themselves—they’re setting themselves up to fall behind.”
“To preserve the social fabric of a nation founded on the principles of equality, justice, and liberty, I encourage you to stand firm as well.”
Prior to shareholders holding companies accountable, some corporations never touched their DEI initiatives, instead enhancing them. Companies like Costco Wholesale and e.l.f Beauty saw an increase in foot traffic, which resulted in a massive increase in revenue.
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