The most recent significant American corporation to abandon its diversity, equity, and inclusion (DEI) hiring targets is Google. The decision comes after the company’s DEI strategies were modified as a result of its yearly corporate policy review. The future of corporate diversity commitments is called into question by the change in Google’s DEI policy.
“We’re committed to creating a workplace where all of our employees can succeed and have equal opportunities,” said a Google spokeswoman. In order to reflect this, we have revised the language in our annual investor report. Additionally, as a federal contractor, our teams are assessing any necessary modifications in light of recent court rulings and presidential orders on the subject.”
How have Google's DEI pledges changed?
Google’s investor reports from 2021 to 2024 have emphasized the company’s dedication to include “diversity, equity, and inclusion part of everything we do.” But this section was conspicuously missing from its most recent report, which was released on Wednesday. A major shift in Google’s diversity initiatives is represented by the company’s new DEI policy.
Google had been a vocal supporter of DEI policies, especially in the wake of George Floyd’s death in 2020 and the demonstrations that followed. CEO Sundar Pichai responded by establishing a five-year target to add 30% more leaders from underrepresented groups. The corporation claims that between 2020 and 2023, the percentage of Black leaders nearly doubled, and that the number of women and Latino leaders also increased.
What is causing big businesses to reverse their DEI policies?
Google’s decision to rescind its DEI efforts is not unique. Similar choices have been taken by other significant companies, such as Walmart, Target, Pepsi, Amazon, McDonald’s, and Meta. Following a complaint from shareholders alleging the business deceived them about the possible financial risks involved with these policies, Target recently stated it was discontinuing its DEI targets. The modification of Google’s DEI policy is in line with more general company changes brought about by political and legal pressure.
While a number of businesses are reducing their diversity initiatives, Apple has adopted a different approach. The conservative organization National Center for Public Policy Research (NCPPR) proposed to repeal Apple’s DEI regulations, and the company’s board asked investors to vote against it last month. According to the group, these practices put companies at danger of “litigation, reputational, and financial risks.”
What impact has the political climate had on these choices?
These corporate changes have been significantly influenced by the political environment in the United States. DEI policies have long been questioned by former President Donald Trump and his supporters. Just more than two weeks after taking office again, Trump has ordered government agencies to stop DEI programs. Businesses’ reactions to these new laws and political changes are reflected in the Google DEI policy update.
This administration’s position was recently demonstrated when Trump conjectured—without offering proof—that DEI policies might have played a role in a Washington, D.C., plane crash. Less than twenty-four hours after the incident, he made comments that aligned with his administration’s larger efforts to rescind diversity initiatives.
There is uncertainty about the future of workplace diversity efforts as Google and other firms reevaluate their DEI commitments. While some businesses back out of their prior pledges, others—like Apple—remain steadfast in the face of the changing political and legal environment.
