Dozens of investment advisors warned America’s biggest corporations Friday that their diversity programs will be a liability under the incoming Trump administration.
Americans “overwhelmingly rejected the ideological takeover of political and civic life by narrow-minded identity politics” in the Nov. 5 election, a coalition of 38 financial officers wrote in letters warning companies that the new administration will “hasten the demise of DEI.”
“You stand at an important crossroads,” the letter states. “Either you can heed the voice of the American people—your shareholders, customers, and employees—or you can bow to fringe activists who demand that you double down on a failing ideology.”
Companies scored on the Alliance Defending Freedom’s Viewpoint Diversity index, along with Fortune 1000 companies not scored, received letters from the investor advisor coalition.
ADF’s 2024 Viewpoint Diversity index revealed that 91 percent of companies scored use critical race theory in their training materials for employees. The index measured the 85 biggest technology and finance companies on their respect for free speech and religious freedom.
Jeremy Tedesco, senior vice president of corporate engagement for Alliance Defending Freedom, told the Daily Caller News Foundation it’s clear that diversity, equity and inclusion (DEI) is already “on its way out.”
“What the Trump administration does could really speed up that process, which will ultimately be good for those corporations, for their workforce, for the broader society, because DEI is a toxic ideology that harms everybody it comes into contact with,” he said.
Some companies have already changed DEI policies as a result of pressure from consumers and shareholders, ending their participation in the left-wing Human Rights Campaign’s Corporate Equality Index and abandoning diversity initiatives, Tedesco noted. Under pressure from conservative activist Robby Starbuck, companies like Lowe’s and Tractor Supply Co backtracked on DEI policies, including sponsoring LGBTQ pride parades. (RELATED: ‘We Will Be Relentless’: One. Simple. Trick … And Corporations Scramble To Kill ‘Divisive’ Diversity Policies)
Companies began rolling back their DEI programs after the Supreme Court ruled against affirmative action in higher education in 2023 and conservatives increased their focus on specifically targeting corporations with legal challenges.
NEW YORK, NEW YORK – NOVEMBER 07: Traders work on the floor of the New York Stock Exchange during the morning trading on November 07, 2024 in New York City. Stocks rose slightly at the opening, a day after the Dow Jones closed up over 1,500 points following former President Donald Trump’s win in the 2024 presidential election. (Photo by Michael M. Santiago/Getty Images)
“While we urge you to distance yourself from DEI and highly divisive groups like the Human Rights Campaign—which bullies companies into adopting radical, wrong-headed, and reputationally disastrous policies—we also want to caution you against retracting your goal of protecting the civil liberties and dignity of all employees,” the letter continues. “As fiduciaries of your companies, we manage over $16 billion in assets, and we represent working Americans who depend on us to safeguard their financial future, retirement planning, and more. You owe these investors transparency and, when necessary, proactive changes that are in their best financial interests to serve and foster a healthy civil society.”
Inspire Investing director of corporate engagement Tim Schwarzenberger, whose company signed onto the letters, said shareholders “expect those in the c-suite to deliver positive financial results that meet customer demand and contribute to a healthy, civil society.”
“That’s not too much to ask,” Schwarzenberger said in a statement to the DCNF. “For too long, however, corporate leaders have been bullied into taking increasingly extreme positions on hot-button cultural issues and implementing harmful DEI policies that divide up the workforce and society itself.”
Dr. OJ Oleka, Chief Executive Officer of the State Financial Officers Foundation, said public employees “like teachers, law enforcement officers, and fire fighters rely on state financial officers to make and recommend sound fiduciary decisions to secure their financial future.”
“I know this firsthand, as my mother is the beneficiary of my late father’s public pension from his career as a public university professor,” he said in a statement. “My mother deserves the promise of my late father’s pension, and so does everyone else who worked hard to earn one. The DEI regime does not deliver on that promise.”
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