---
title: "US Companies Thriving Despite DEI Backlash, Research Shows"
url: https://projectchintan.com/article/us-companies-dei-policies-thrive-backlash-research-lhac6
publisher: Project Chintan
author: Project Chintan Newsroom
section: Business
published: 2026-08-14T20:32:47.189Z
modified: 2026-08-14T23:30:05.361Z
language: en-IN
---

# US Companies Thriving Despite DEI Backlash, Research Shows

New research indicates that US companies maintaining diversity, inclusion, and equity (DEI) policies, despite conservative opposition and threats of financial repercussions, have performed as well as or better than those that discontinued them. This analysis comes amid a period of intense scrutiny f

## Key takeaways

- US companies that maintained diversity, inclusion, and equity (DEI) policies have seen financial performance comparable to or better than those that discontinued them.
- Research analyzed stock market performance using 'abnormal returns' to assess the impact of DEI decisions after a January 2025 executive order.
- Conservative backlash and a 2023 Supreme Court ruling influenced corporate decisions regarding DEI initiatives.
- Some firms that withdrew DEI policies faced negative consequences, including loss of sponsorships.

US companies that preserved their diversity, inclusion, and equity (DEI) initiatives have demonstrated financial resilience, performing comparably to or exceeding competitors who rescinded such policies. This finding emerges from new research analyzing the impact of corporate decisions on DEI in the wake of conservative backlash and government actions.

## What Happened

Following threats of financial repercussions, famously encapsulated by the phrase “go woke, go broke,” and subsequent executive orders in January 2025 by Donald Trump targeting DEI within the federal government, many corporations initially announced an end to their DEI policies. Companies such as Google, Goldman Sachs, McDonald’s, and Walmart reportedly altered their stances. However, research conducted by Jacob Grumbach, an associate professor at the University of California at Berkeley’s Goldman School of Public Policy, indicates that firms which retained their DEI practices, including Costco, Apple, and Delta Air Lines, experienced equivalent financial outcomes. Grumbach’s analysis utilized the concept of “abnormal returns” to measure stock performance relative to expectations after Trump’s executive order. The study found that companies maintaining DEI policies performed equally well, and in the days immediately following the executive orders, even better on the stock market than those that did not.

## Background

The “go woke, go broke” movement gained traction in 2023, fueled by conservative boycotts against companies that engaged in socially progressive stances. Notable incidents included Bud Light's sales decline after featuring a transgender influencer, and Target facing public anger over Pride month merchandise. The US Supreme Court’s ruling in 2023 that race-conscious admissions in higher education were unconstitutional also contributed to a climate of fear and prompted many companies to reconsider their DEI policies. David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion and Belonging at New York University, noted that this ruling created significant concern in the corporate world, leading to numerous pullbacks on DEI initiatives. He suggested that the situation often involves companies making adjustments, retaining some aspects of their DEI efforts while modifying or rebranding others, rather than complete abandonment.

## Key Facts

- New research analyzed the performance of S&P 500 companies after an executive order targeting DEI in January 2025.
- Companies that maintained DEI policies, such as Costco, Apple, and Delta Air Lines, performed as well as competitors who did not.
- Some companies that initially reduced DEI efforts faced backlash, with Target losing a Pride parade sponsorship after withdrawing some policies.
- The US Supreme Court ruling in 2023 against race-conscious admissions in higher education influenced corporate decisions on DEI.
- Research by Jacob Grumbach, associate professor at UC Berkeley's Goldman School of Public Policy, measured stock performance using "abnormal returns."

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Canonical: https://projectchintan.com/article/us-companies-dei-policies-thrive-backlash-research-lhac6
Reported from: Multiple Sources