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US firms that kept DEI policies despite ‘go woke, go broke’ threats thrived
US companies that retained diversity, equity and inclusion (DEI) policies reportedly matched or outperformed rivals that withdrew them after Donald Trump’s 2025 executive orders targeting DEI. The findings challenge the conservative claim that businesses will suffer financially for maintaining such programmes, though consumer sentiment and a company’s particular customer base may affect the risk.
Research by UC Berkeley’s Jacob Grumbach examined S&P 500 firms using “abnormal returns”, comparing expected and actual share-price performance after the orders. Companies including Costco, Apple and Delta Air Lines kept DEI policies, while Google, Goldman Sachs, McDonald’s and Walmart ended or scaled back theirs. The backlash had intensified from 2023, amid boycotts and legal challenges following the Supreme Court ruling against race-conscious university admissions.
In short
- Firms keeping DEI policies performed at least as well as those retreating.
- Some retained-DEI companies briefly outperformed after Trump’s orders.
- Consumer base and political risk still shaped company decisions.
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The case for
Supporters of DEI policies argue that the UC Berkeley research provides empirical vindication of their case: companies maintaining inclusive practices like Costco and Apple matched or outperformed those abandoning them, directly contradicting the "go woke, go broke" prediction. This demonstrates that diversity and inclusion remain sound business strategy, not a luxury to be discarded under pressure. The companies that stood firm on their values preserved their talent pipelines, brand integrity and connection to the growing proportion of employees and customers who prioritise inclusive workplaces.
The case against
Sceptics contend that attributing stock performance differences to DEI policy alone overlooks numerous confounding variables—management quality, product innovation, sector dynamics and market conditions. The research may suffer from selection bias or reverse causation; companies may have abandoned DEI because their customer bases preferred it, making their decisions contextually sound rather than economically mistaken. Correlation does not establish causation, particularly over such a short timeframe, and the sample may be too limited to draw definitive conclusions about DEI's independent impact on financial performance.
Explained simply
Diversity, equity and inclusion (DEI) policies are workplace programmes intended to widen access to jobs and promotion, and to address barriers faced by some groups. In the US, companies have faced growing political pressure over these policies, including boycotts and legal challenges after a 2023 Supreme Court ruling on university admissions.
Donald Trump’s 2025 executive orders targeted DEI programmes, prompting some firms to change or end their policies while others kept them. The companies named in the report include Costco, Apple and Delta Air Lines, which retained policies, and Google, Goldman Sachs, McDonald’s and Walmart, which scaled theirs back or ended them. Their choices matter to workers, customers and investors, as well as to the wider debate over whether DEI programmes carry business risks.