Some DEI references from GM and Disney Scrub Annual Report: NPR

Some large companies have announced the end of their diversity programs, while many others have quietly quit.

At least dozens of US companies have removed references to “diversity, equity, inclusion” and “DEI” to investors from their latest annual report.

A year ago, all of these companies mentioned diversity and inclusion in disclosure, but in a new report, all of these companies have at least rewritten some of the language. In some cases, they no longer mention “diversity” at all.

Most of these companies have submitted these annual reports in the past two weeks. It is usually when their report – when it is intended to provide a comprehensive financial review of the past year and update investors regarding the current business environment. But these updates also come when President Trump put an end to the federal DEI and for contractors, including many private companies.

Companies are also under pressure from conservative critics who say the DEI program itself is discriminatory against non-vegetative.

According to an analysis by NPR, companies that have recently removed or softened the DEI language include Disney, Google, GM, GE, Pepsi, Intel, PayPal, Chipotle, Comcast, 3M, Regeneron, and Philip Morris. While most companies have not given a reason for the change, some told NPR they have reevaluated some of their DEI programs and are investigating Trump’s executive order.

Quietly remove the DEI reference

These changes come after Walmart, Target, Amazon, Meta, Ford, and other large companies have created headlines to terminate or modify several diversity programs. Now, NPR analysis shows that more companies are quietly changing the way they talk to investors about DEI.

For most companies, it makes little sense to issue a press release saying, “I’ll stop.” It’s like waving a red flag at a bull,” says Shiva Rajgopal, professor of accounting and auditing in Colombia. University. “The majority of people usually drop them quietly whenever practice changes.”

Many businesses are certainly silent about these changes. For example, last year, automaker General Motors said, “At GM we are committed to promoting a culture of diversity, equity and inclusion.”

However, in a new 2024 report submitted last week, GM never mentioned “diversity.” (However, automakers promote “diverse EV lineups.”) GM, a federal contractor, did not respond to requests for comment.

Meanwhile, Disney shortened its “Diversity, Equity and Inclusive” section in its latest annual report submitted in November. Among other changes, it removed references to the previous year’s website “to amplify underrated voices” and “emphasize some of Disney’s DE&I’s commitments and actions.” A Disney spokesman declined to comment.

And Pepsi has eliminated almost every mention of diversity a year after telling investors that “our culture of diversity, equity and inclusion is a competitive advantage.” In this week’s new report, Pepsi only mentions diversity related to board committees focusing on “sustainability, diversity and public policy.” The company did not respond to requests for comment.

Slide Dei changes into fine printing

Public companies are required to submit their annual reports and other investor disclosures with the Securities and Exchange Commission. Many companies will close their fiscal year in late December or immediately, and submit these reports from late January (although some companies use different financial calendars).

These annual reports can run on a length of 100 pages or more and are usually written in a densely packed lawyers’ corporation. Therefore, other information that companies use these applications to quietly disclose the lawsuits and government investigations they face, or that they do not want to announce separately, which is necessary to communicate to investors. It is relatively common to slip through.

In this case, businesses are eliminating information and rhetoric that has become politically toxic. There are no regulatory requirements for companies to disclose their DEI goals or philosophy. Many companies have done voluntarily in the past, particularly to please investors, employees and customers, but now the political environment has changed.

“We’ve seen companies begin to determine that compensation is not necessarily weighted by risk,” says Becky Baker, employment lawyer for Vinson & Elkins.

Some changes go beyond rhetoric

It’s not the first time a company has been badly backtracked from the DEI pledge. Or, they used their annual report to quietly reveal the changes.

Last April, an analysis by the Wall Street Journal found that dozens of companies had “explained explanations” of the DEI initiative in their annual reports. At the time, the journal reported, “Generally, companies say they’re not cutting back on their programs or long-term goals.”

But today some companies are changing more than just rhetoric. Google told employees on Wednesday it ended several diversity employment targets and is reassessing DEI’s efforts to “stimulate risk or not as impact as we wanted.” The Journal reported.

The tech giant also removed references to diversity from its annual reports filed that day. They even renamed websites that focused on DEI’s efforts. Last year, Google told investors that it could find more information on its website, Diversity.Google. However, the website will be redirected to “about.google/belonging/”.

“We are committed to creating a workplace where all employees can be successful and have equal opportunities,” a Google spokesperson told NPR in an email. She added, as a federal contractor, “Our team is also evaluating the necessary changes following recent court decisions and executive orders on the topic.”

Other companies identified by NPR analysis also removed the specific diversity targets previously announced.

For example, Intel told investors in its 2023 annual report that it hoped that women would make up 25% of senior executives by the end of the decade.

“Diversity and inclusion are central elements of Intel’s values,” Tech Giant said at the time. However, in a 2024 report submitted last week, Intel deleted the target. He also erased “diversity” from the sentence, saying instead that “inclusion is a core element of Intel’s value.”

Intel is also a federal contractor. The spokesman declined to comment.

NPR reached out to all other companies found in the analysis and found that it removed the DEI language from its annual report. Paypal and Philip Morris declined to comment. Chipotle, GE, Comcast, and Regeneron did not respond to requests for comment.

Trump is increasing pressure on businesses

Some large corporations had retreated from Day before President Trump, the longtime critic of Day, was re-elected. But now, Trump has signed executive orders to end the federal government’s DEI, calling them “illegal” and “radical and useless.”

One executive order threatens to impose financial sanctions on contractors with “illegal” DEI programs. Trump has also directed federal agencies to identify up to nine public companies or other large private agencies for a “potential citizen compliance investigation.”

These actions add to the pressures faced by many private employers who have made public commitments about diversity, equity and inclusion. For people like Google, GM, and Intel who do business with the federal government and are directly affected by executive orders, the interests are particularly high.

For example, the manufacturing conglomerate 3M is also a federal contractor. It was recently renamed the “Diversity, Equity and Inclusive” section in part of the 2023 annual report, which was discussed in “Inclusion” in the 2024 report filed Wednesday.

“We will continue to monitor and comply with changes to our legal obligations as a federal contractor,” a spokesperson for 3M told NPR, and the company said, “Everyone is respected, supported and maintains a working environment.” He adds that he is committed to doing so. He is encouraged to take individual initiatives.”

The company once embraced Dei and has pledged to support employees, customers and the end result by creating a more diverse and inclusive workforce. However, things have changed dramatically since the Supreme Court overturned positive behavior at the university in 2023. That rule handed Day’s critics a new legal tool.

Since then, right-wing politicians, lawyers and other activists have put pressure on businesses that accepted Day, even before President Trump was re-elected. Anti-DEI activists are also introducing shareholder proposals to pressure various companies to end their diversity pledges.

But not all companies are succumbing to pressure. Costco, for example, has stood up for DEI efforts, and last month shareholders overwhelmingly beat anti-DEI shareholder proposals.

The retailer submitted its latest annual report in October. The section on diversity, equity, and inclusion fine-tunes some words, but the commitment to “care for employees” is to provide diversity, equity, promotion of inclusion, inclusive and respect. It includes creating a workplace to represent,” and “it’s been largely unchanged since last year,” Costco said in its latest annual report.

Google, Amazon, Meta, Comcast, and Ford are one of the NPR’s corporate funders.