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Diversity initiatives maintain revenue
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
S&P 500 firms keeping DEI programs saw no difference in stock returns or revenue versus those that cut them. The market does not punish diversity commitments, challenging the retreat narrative.
Background
Following political pressure and an executive order, many major companies rolled back DEI initiatives, citing potential financial harm. A new study by UC Berkeley researchers analyzed S&P 500 firms and found no financial penalty for maintaining DEI programs, suggesting companies have leeway to resist such pressure.
How it unfolded
- 2025Target faced a progressive consumer boycott after ending its DEI initiatives.
- Aug 14, 2026The Root reported on new research showing DEI policies did not hurt companies' bottom lines after Trump's executive order.
- Aug 18, 2026CBS News covered the study, quoting co-author Jacob Grumbach, and noted that Americans broadly support diversity in business.
Who’s saying what
- Analysts
- The study's findings suggest that U.S. firms have a lot of leeway to resist pressure to cut DEI programs, according to co-author Jacob Grumbach.
- Public
- About six in 10 Americans believe businesses with a diverse workforce are more profitable and innovative, per a 2025 Gallup and Bentley University poll.