Corporate America Drew Back From DEI. The Upheaval Isn't Over.

Boards and executives still support diversity efforts, even if they avoid the term, bend to the demands of activists, or try to sidestep skirmishes with Trump's administration.

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CEOs also risk backlash among customers and employees.

"Diversity is a core American feature," said Daniella Ballou-Aares, chief executive of the Leadership Now Project, a business group that hasn't taken a position on DEI. "Do I think every company will emphasize the benefits of diversity in the workforce? No, and I don't think everyone is doing that right now, either. But it won't go away all together."

Tractor Supply was among the first prominent companies to say it would pull back from DEI commitments: cutting roles and withdrawing support for LGBTQ events. "We have heard from customers that we have disappointed them," the retailer said in June.

Tractor Supply made the announcement just weeks after social-media provocateur Robby Starbuck took aim at the company on social media.

Ford and a few others soon followed, saying they would stop working with the Human Rights Campaign, an organization Starbuck had singled out. The gay-rights lobby had over decades won support from big companies for policies hospitable to lesbian, gay, bisexual, transgender and queer employees and customers.

Changes to training programs

Human-resources professionals retreated during the summer as well. SHRM, a group with members across hundreds of companies, said it would drop the "e" from DEI, instead promoting inclusion and diversity.

"Equity" to HR professionals means companies should guarantee a level playing field for all workers. But anti-DEI activists slam equity as pursuing diversity at the expense of merit.

Companies also revamped training programs that once expounded on societal racism, instead favoring narrower efforts with broader support, such as closing pay gaps between women and men, said Josh Bersin, a longtime workplace analyst and corporate adviser.