Goldman Sachs and Deloitte Scale Back DEI Policies Amid Political Pressure

Goldman Sachs and Deloitte have become the latest major corporations to scale back their diversity, equity, and inclusion (DEI) policies, responding to mounting political and legal pressures in the United States.

Goldman Sachs has eliminated its requirement that companies seeking to go public must have at least one board member from an underrepresented background. The policy, introduced in 2020, was aimed at increasing diversity in corporate leadership. However, the investment bank cited legal developments—including Nasdaq’s recent decision to drop its board diversity disclosure requirements—as the reason for rolling back the initiative.

Meanwhile, Deloitte’s US division has also made significant changes, instructing employees working on government contracts to remove pronouns from email signatures and announcing the shutdown of its DEI programme. In an internal email sent to 15,000 employees in its government and public services division, the firm stated the move was in line with “emerging government client practices and requirements.” Deloitte also confirmed plans to phase out its annual diversity report.

Corporate America Responds to Political Pressure

These rollbacks reflect a broader trend among major corporations as conservative-led scrutiny of DEI initiatives intensifies. Former President Donald Trump’s recent executive orders have reversed DEI policies within the federal government, with new rules requiring staff to report colleagues promoting diversity measures. While these directives do not directly apply to private firms, Trump has urged the US Attorney General’s office to explore ways to extend them.

Other major businesses have already begun pulling back on diversity initiatives:

• Google recently abandoned its commitment to boosting hires from historically underrepresented groups.
• Meta and Amazon have scaled back diversity programmes, cutting initiatives in recruitment, training, and supplier selection.

Institutional Shareholder Services (ISS), which advises major corporate investors, has also adjusted its approach. From February 25, ISS will no longer recommend voting against companies that fail to meet board diversity targets, signaling a shift in corporate governance priorities.

Uncertain Future for Corporate DEI Efforts

The rollback of DEI policies has gained momentum following the Black Lives Matter protests, which spurred widespread corporate commitments to diversity. However, right-wing figures, including billionaire Elon Musk, have pushed back against these efforts—without evidence—claiming diversity policies have contributed to failures in emergency response efforts.

As private sector firms increasingly adjust to legal and political pressures, the future of corporate diversity initiatives remains uncertain.