Big companies are talking less about diversity these days. New research shows mentions of diversity, equity and inclusion have dropped sharply in corporate filings this year. This shift mirrors wider changes in how businesses approach workplace diversity programs.
Just 42% of S&P 500 companies mentioned diversity in their latest annual reports filed with the Securities and Exchange Commission. That’s down from 53% last year, according to Bloomberg analysis. The decline follows mounting pressure from conservative groups and some investors who question these initiatives.
“Companies are becoming more cautious about how they communicate their diversity commitments,” says Marlon Williams, head of diversity research at Harvard Business School. “They’re not necessarily abandoning these programs completely, but they’re certainly changing how they talk about them publicly.”
The language shift comes amid a complex political backdrop. Last year’s Supreme Court ruling restricting affirmative action in college admissions sent ripples through corporate America. Though the ruling didn’t directly apply to workplace practices, many legal experts say it created uncertainty about diversity programs generally.
Some firms have faced shareholder lawsuits claiming their diversity initiatives amount to reverse discrimination. Conservative groups like the American Alliance for Equal Rights have targeted major corporations including Pfizer and Macy’s over programs specifically designed for underrepresented groups.
“What we’re seeing is a recalibration,” explains Teresa Ghilarducci, labor economist at the New School. “Companies are still working toward diverse workforces, but they’re adjusting their approaches and definitely toning down their public messaging.”
The data shows variations by industry. Technology companies have reduced diversity mentions the most, with only 38% including such language in recent filings compared to 57% last year. Financial services firms showed a smaller decline, dropping from 49% to 44%.
The retreat extends beyond just regulatory documents. A separate analysis by recruitment firm Challenger, Gray & Christmas found that job postings mentioning DEI-related terms fell by 35% in the first quarter of 2024 compared to the same period last year.
Company insiders suggest the shift doesn’t necessarily mean abandoning diversity goals. Many organizations are simply reframing their language, focusing on “talent development” or “inclusive excellence” rather than explicit diversity targets.
“Smart companies recognize diverse teams perform better,” notes Frank Cooper, global chief marketing officer at BlackRock. “The question now is how to achieve those benefits while navigating a more contentious political environment.”
Some businesses have found themselves caught between competing pressures. Progressive stakeholders demand meaningful action on diversity, while conservative groups scrutinize programs for legal vulnerabilities. The result has been a more cautious, less public approach to DEI work.
The Federal Reserve Bank of New York recently published research confirming diverse leadership teams correlate with better financial performance. Companies with above-average diversity scores showed return on equity 2.5 percentage points higher than less diverse peers.
“The business case for diversity remains strong,” says Elise Gould, senior economist at the Economic Policy Institute. “What’s changing is how companies navigate the politics surrounding these issues.”
For employees from underrepresented groups, the shifting landscape creates uncertainty. Some fear the retreat from public DEI commitments signals diminished corporate support. Others see it as a natural evolution toward more integrated approaches to workplace inclusion.
Human resources professionals report focusing more on measurable outcomes rather than public pronouncements.
