Study finds DEI programs did not hurt S&P 500 firms' market or sales
A new analysis shows that S&P 500 companies that kept diversity, equity and inclusion initiatives after the 2025 executive order performed on par with peers that dropped them.
An academic paper titled "Markets Do Not Punish Firms for Maintaining DEI" compared S&P 500 firms that retained diversity, equity and inclusion programs with those that discontinued them after the 2025 executive order aimed at ending illegal discrimination. The analysis, led by Jacob Grumbach of UC Berkeley, measured abnormal stock performance and revenue trends, finding no statistically significant gap between the two cohorts.
Major retailers and tech firms—including Apple, Costco, Delta Air Lines and Dollar Tree—kept their DEI efforts, whereas Target and Walmart rolled back such initiatives. While the data suggest firms face little market penalty, the authors note lingering concerns about possible adverse treatment from the executive branch or regulators. Isolated consumer pushback was observed in cases like Bud Light’s partnership with Dylan Mulvaney and a 2025 Target boycott, but overall shopper behavior remained steady. A Gallup and Bentley University poll indicated that roughly six in ten Americans view diverse workforces as beneficial for profitability and innovation.
Why it matters
The findings suggest companies can sustain DEI policies without fearing financial loss, informing corporate strategy amid political pressure.
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