Companies That Kept DEI Programs Performed Just As Well As Those That Dropped Them, Study Finds

New research has found that companies that kept their DEI initiatives performed just as well as companies that did not. The research that was shared with the Guardian examined how well S&P 500 companies fared after Trump signed his executive order in 2025.

Jacob Grumbach, an associate professor at the University of California at Berkeley’s Goldman School of Public Policy, used “abnormal returns” a term used by economists – the difference between how a stock is expected to perform versus how it actually performed, but removing the stock movement that could be explained by DEI decisions.

What did the research find?

Companies that kept their DEI policies or voted against anti-DEI shareholder proposals performed financially even after Trump’s executive orders, compared with firms that rolled back their DEI initiatives. Grumbach also found that companies that kept their DEI initiatives performed better on the stock market than those that did not in the days after the executive orders were signed.

DEI’s impact on a company’s bottom line may depend on its consumers. After Target rolled back its DEI efforts, over 100,000 people pledged to boycott Target for 40 days to protest. Subsequently, Target’s foot traffic declined for nine consecutive weeks—ultimately stretching to 11 straight weeks. However, Costco’s foot traffic steadily increased after it stood firm on its DEI practices.

Which companies stood firm on their DEI practices?

Companies like Apple, Costco and Disney have stood by their DEI practices. Apple’s board of directors has opposed a proposal by the National Center for Public Policy Research (a conservative think tank) to “consider abolishing its Inclusion & Diversity program, policies, department, and goals.”

A proposal from a shareholder, put forward by a conservative think tank, challenged Costco to evaluate and openly disclose the harm associated with its DEI policies and goals. Still, Costco stood firm on its DEI initiatives.

Disney shareholders rejected a proposal urging the company to withdraw from the Human Rights Campaign’s corporate equity index, which assesses workplaces on their commitment to lesbian, gay, bisexual, transgender, and queer equality.

Verizon Communications Inc. upheld its DEI commitments after FCC Chairman Brendan Carr urged the telecom carrier to reverse its encouragement of DEI in corporate values and training materials.

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