DEI Policies Help US Firms Thrive Despite Go Woke Backlash 2026

New research reveals that US firms that retained their diversity, equity, and inclusion (DEI) policies despite conservative backlash performed just as well as competitors who abandoned them. The study, shared exclusively with the Guardian, challenges the 'go woke, go broke' narrative that pressured companies to drop DEI initiatives.

Study Methodology and Key Findings

Jacob Grumbach, an associate professor at UC Berkeley’s Goldman School of Public Policy, analyzed S&P 500 companies following President Trump’s January 2025 executive orders ending federal DEI programs. He used 'abnormal returns'—the difference between expected and actual stock performance—to isolate the impact of DEI decisions.

The results showed no financial penalty for firms that kept DEI policies or voted down anti-DEI shareholder resolutions. In fact, in the days after the executive orders, companies maintaining DEI practices actually outperformed those that cut them.

Which Companies Stood Firm?

Notable firms that resisted pressure include Costco, Apple, and Delta Air Lines. These companies publicly reaffirmed their commitment to DEI, while others like Google, Goldman Sachs, McDonald’s, and Walmart scaled back their policies.

Performance Comparison Table

Why DEI Persists in Certain Markets

Grumbach notes that the impact of DEI on a company’s bottom line depends on its consumer base. Companies like Apple may have known their customers value progressive values, allowing them to weather political storms. In contrast, Tractor Supply, which serves a more conservative demographic, chose to pull back.

Key Takeaways for Businesses

• DEI policies do not harm financial performance; they can even boost stock returns in the short term.
• Consumer demographics play a critical role in whether DEI initiatives are sustainable.
• Companies with strong brand loyalty can withstand political backlash.
• Abandoning DEI may not be necessary for profitability.

FAQ

This research provides a counterpoint to the widespread belief that DEI initiatives are a financial liability. For businesses, it suggests that aligning with core values can be both ethical and profitable, depending on their market positioning.

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