Goldman Sachs, Deloitte revise policies in response to Trump’s push against diversity

NEW YORK: Goldman Sachs and Deloitte have recently revised their corporate policies in response to Donald Trump’s anti-diversity initiatives.

Goldman Sachs has discontinued a 2020 policy that mandated diversity on the boards of companies it takes public, which required at least one board member from a diverse background for initial public offerings. In light of a court ruling that eliminated Nasdaq’s diversity disclosure requirements, Goldman stated, “As a result of legal developments related to board diversity requirements, we ended our formal board diversity policy,” while affirming their belief in the benefits of diverse boards.

In parallel, Deloitte US has instructed employees on government contracts to remove pronouns from their email communications and announced an end to its diversity, equity, and inclusion (DEI) program.

The directive was communicated to 15,000 staff in the government and public services sector, with a deadline of February 7 to revise email signatures. The firm also indicated it would be discontinuing its annual diversity report and broader DEI initiatives, a shift that the company claims aligns with changing practices and requirements among government clients.

This move is part of a broader trend of private companies reacting to pressure from the White House to eliminate DEI policies, which some conservatives accuse of fostering “reverse discrimination.”

Amazon cuts reference to diversity from annual report

Last month, Trump implemented executive orders that reversed DEI initiatives within the federal government, mandating government employees report colleagues allegedly continuing DEI efforts, with warnings of penalties for non-compliance. Although these orders do not directly affect private enterprises, Trump has directed the US attorney general’s office to explore ways to extend this influence to the private sector.

Additionally, the shareholder advisory service ISS announced it would no longer recommend against US company board members for failing to meet diversity goals, starting February 25. This change reflects the shifting landscape as companies and investors reconsider their diversity policies amidst evolving governmental and market conditions.

Several tech giants are also following suit—Google recently abandoned its hiring goals for historically underrepresented groups and is reviewing its DEI initiatives. Meta Platforms, Facebook’s parent company, has also decided to end all DEI programs related to hiring, training, and vendor selection.

Likewise, Amazon announced it is “winding down outdated programs and materials” related to diversity and inclusion.

The backlash against DEI initiatives has intensified in the wake of the ‘Black Lives Matter’ movement, which gained momentum following George Floyd’s murder.

Trump administration figures and supporters, including Elon Musk, have claimed—without evidence—that DEI programs hindered response efforts to various crises, including recent wildfires in Los Angeles and a tragic aviation incident in Washington DC.