In response to threats of legal action from conservative groups, several major U.S. companies, including JPMorgan Chase and BlackRock, have made modifications to their internal diversity policies aimed at enhancing racial and ethnic representation. A Reuters review of corporate statements reveals that at least six companies out of the 25 that received public shareholder letters since 2021 have revised their diversity, equity, and inclusion (DEI) programs.
The shareholder letters, asserting that the companies’ DEI initiatives constituted illegal discrimination and breached directors’ duties to investors, prompted these firms to revisit their policies. While Reuters found that the primary changes involved the removal of language indicating specific programs for underrepresented groups or modifications to executive goals for racial diversity, a direct link between these changes and the lawsuit threats could not be established.
JPMorgan Chase, which received a letter in May 2022 alleging discrimination in 10 DEI programs, adjusted its “Advancing Hispanics & Latinos” and “Advancing Black Pathways” programs around February 2023. The revised descriptions now welcome applications from all students “regardless of background.” JPMorgan spokesperson Allison Kahl affirmed the bank’s commitment to an inclusive workforce comprised of top talent.
BlackRock, the world’s largest asset manager, received a letter in April and subsequently removed language specifying that a scholarship was “designed for” members of particular underrepresented groups. A BlackRock spokesperson expressed pride in expanding scholarship eligibility.
The conservative legal groups behind the letters are the American Civil Rights Project, founded by Texas attorney Dan Morenoff, and America First Legal, led by former Trump adviser Stephen Miller. These groups have been active in challenging corporate diversity initiatives.
Despite the recent Supreme Court ruling in June 2023 declaring affirmative action in universities’ admissions decisions unconstitutional, it did not directly impact companies. U.S. companies are subject to anti-discrimination laws that prohibit considering race and gender in individual hiring decisions. DEI programs that widen applicant pools and eliminate barriers to advancement remain legally permissible.
The adjustments made by these companies underscore the ongoing tension surrounding DEI initiatives and the challenges they face from legal scrutiny, particularly from conservative organizations advocating for a rollback of corporate diversity programs.