Meta Curbs Diversity Programs Amid Rising Legal and Political Risks

Meta Curbs Diversity Programs Amid Rising Legal and Political Risks

Meta has announced a significant shift in its diversity, equity, and inclusion (DEI) initiatives, citing legal and political risks as primary factors. This move aligns with a broader trend among U.S. corporations reevaluating their DEI strategies. The decision comes on the heels of a 2023 Supreme Court ruling that abolished the right of private universities to consider race in admissions decisions, a landmark verdict that has intensified scrutiny over DEI efforts.

Meta's recent actions follow the termination of its fact-checking program, which had faced substantial criticism from President-elect Donald Trump and Republican leaders. Additionally, the company is elevating conservatives to key leadership roles as part of its strategic realignment. Despite repeated inquiries, Meta has refrained from commenting on an internal memo regarding these changes.

The term "DEI" has become increasingly contentious, as noted by Meta, reflecting a charged political climate. Many corporations, including Walmart and McDonald's, have similarly scaled back their diversity efforts. These initiatives were initially expanded following the Black Lives Matter protests in 2020, which prompted numerous companies to address systemic inequality within their organizational structures.

Conservative activist Robby Starbuck, who claims credit for challenging DEI policies at companies like Ford, John Deere, and Harley-Davidson, expressed satisfaction with the recent developments.

"I'm sitting back and enjoying every second of this" – Robby Starbuck

The corporate retreat from DEI programs is not limited to social diversity efforts but extends to environmental initiatives as well. Major financial institutions such as Goldman Sachs, JPMorgan Chase, and BlackRock have withdrawn from groups concentrating on climate change risks. These moves are part of an accelerated withdrawal initiated two years ago when Republicans intensified their criticisms of companies like BlackRock and Disney for engaging in what they termed "woke" progressive activism.

This political pressure has also manifested in court decisions. A recent ruling by a court of appeals invalidated Nasdaq's policy requiring companies to have at least one woman, racial minority, or LGBTQ individual on their boards unless they provided an explanation. This policy was another response to the social justice movement sparked by Black Lives Matter protests.

Meta's decision reflects a broader corporate response to increasing politicization around diversity efforts. Companies such as Bud Light and Target have faced significant backlash and boycotts over their attempts to appeal to LGBTQ customers, illustrating the complex landscape businesses must navigate.

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