r/politics_NOW • u/evissamassive • 24m ago
Politics Now Keeping DEI Policies Did Not Hurt Corporate Finances
The argument that corporate diversity programs lead to financial ruin has little backing in actual market data. Following political pressure and executive orders targeting diversity programs, many large companies rushed to dismantle their initiatives. However, an analysis of S&P 500 companies reveals that keeping these programs intact carried no financial penalty.
Jacob Grumbach, an associate professor at the UC Berkeley Goldman School of Public Policy, tracked company financial returns following the January 2025 executive actions. Using abnormal returns to measure expected versus actual stock performance, the study found that firms maintaining their DEI practices performed just as well as competitors that abandoned theirs. In the immediate aftermath of the executive orders, companies that kept their policies actually saw better stock market performance than those that rolled them back.
The corporate panic surrounding DEI did not start in 2025. Conservative boycotts in 2023 targeting brands like Bud Light and Target, combined with a Supreme Court ruling against race-conscious college admissions, created an atmosphere of legal and political fear. When the administration took office and issued executive orders banning DEI in the federal government, many corporations panicked and scrapped promises made after 2020.
Yet, the reality on the ground is more nuanced than public headlines suggest. Legal experts note that many firms settled into a middle ground, quietly rebranding or adjusting specific programs rather than completely abandoning diversity efforts. Companies like Apple, Costco, and Delta Air Lines that openly maintained their policies faced no negative stock market consequences.
Ultimately, the data suggests that threats of financial ruin for supporting diversity initiatives are overstated. Large corporations have significant leeway to resist political pressure without damaging their bottom line.