Victoria’s Secret Shifts DEI Focus to ‘Inclusion and Belonging’ Amid Corporate Trend of Backing Away from DEI Initiatives

Victoria’s Secret Shifts DEI Focus to ‘Inclusion and Belonging’ Amid Corporate Trend of Backing Away from DEI Initiatives

Topline: Victoria’s Secret is the latest in a growing number of companies revising their Diversity, Equity, and Inclusion (DEI) strategies, shifting from “DEI” to “inclusion and belonging,” as outlined in a memo to employees shared with Forbes. This move aligns the lingerie retailer with a broader trend of businesses adjusting their DEI programs following political and legal challenges, including former President Donald Trump’s vocal opposition to DEI during his second term.

Key Developments: March 5 – Victoria’s Secret is reevaluating its supplier diversity targets and has paused plans to increase Black representation in its workforce. This comes after a commitment to DEI investments in the early 2020s, which followed controversies over workplace harassment and a lack of body type diversity among its models.

Feb. 28 – State Street, known for its “Fearless Girl” statue, has scaled back its diversity requirements for board members, removing gender and racial quotas from its latest proxy voting guidance. The company explained this decision was made to align with global protocols and local laws.

Feb. 27 – Warner Bros. Discovery updated its DEI programs to simply focus on “inclusion,” removing external diversity surveys and implementing a uniform application process across its development programs, while reaffirming its commitment to diverse teams.

Feb. 27 – Goldman Sachs made a similar move, removing references to DEI from its annual filing, a change it attributed to recent legal developments in the U.S.

Feb. 26 – Paramount has begun phasing out diversity targets in its hiring practices and has removed DEI-related language from its website, following pressure from Trump’s anti-DEI executive orders.

Feb. 25 – Bank of America and BlackRock also signaled a shift, ending diversity hiring targets and removing DEI-related language from official reports.

The Political Landscape Shifts: Several companies, including Citigroup, Pepsi, and JPMorgan Chase, have either modified their DEI programs or rebranded their diversity teams to align with the evolving political landscape under Trump’s influence. These changes follow an executive order from Trump’s administration that calls for a rollback of DEI programs in federal agencies and encourages private companies and universities to follow suit.

Trump’s Opposition to DEI: Trump has been an outspoken critic of DEI, referring to it as a “hoax” and emphasizing his belief that it is detrimental to the country. In a Truth Social post, he called for companies like Apple to completely eliminate DEI policies, further fueling the national debate on diversity practices. At a shareholder meeting, Apple CEO Tim Cook emphasized the company’s commitment to creating a culture of belonging but acknowledged that some DEI programs might need to adapt to legal requirements.

Counterarguments and Corporate Resistance: While many companies are adjusting or pulling back on DEI initiatives, some have chosen to stand firm. Costco and Delta Airlines, for example, reaffirmed their commitment to DEI. Additionally, Mark Cuban has publicly defended DEI, pointing out its positive impact on business outcomes and bottom lines. The Human Rights Campaign (HRC) has also criticized the growing anti-DEI movement, asserting that it misrepresents the benefits of diversity and workplace inclusion.

Challenges and Criticism: The DEI rollbacks have not been without controversy. Critics argue that these changes reflect a broader political and cultural battle, with some accusing companies of bowing to conservative pressure at the expense of social progress. Robby Starbuck, a vocal anti-DEI activist, has led campaigns targeting companies, claiming credit for persuading brands like Walmart and McDonald’s to scale back their DEI commitments.

The Future of DEI: As the legal and political landscape around DEI evolves, businesses are finding themselves at a crossroads. Some companies will continue to embrace diversity as a business imperative, while others will likely scale back or rebrand their DEI efforts to align with the current political climate. This ongoing debate has sparked significant conversation about the role of corporate America in fostering an inclusive culture and whether these initiatives are truly beneficial for businesses, their employees, and society at large.

This shift signals the continuing evolution of corporate policies in a highly politicized environment, where diversity, equity, and inclusion are becoming increasingly divisive topics. Whether these changes represent a temporary recalibration or the end of the DEI movement in corporate America remains to be seen.