Stacey Abrams is cautioning companies about the short- and long-term effects of walking back their diversity, equity and inclusion (DEI) commitments, warning that doing so risks breaking trust with entire communities.
The lawyer and former Georgia state representative spoke on a panel at NYU School of Law on July 11, where she addressed the growing number of companies rolling back DEI initiatives in response to executive orders from Donald Trump that target such programs in both
the public and private sectors. Abrams, who now leads the DEI advocacy group America Pride Rises, emphasized that consumers are closely watching which companies are stepping away from their inclusion commitments, and it’ll come at a cost to those businesses.“This notion that simply complying a little bit stops at the water’s edge is antithetical to every history we have ever written, and it costs you,” Abrams said, as reported by Fortune. “It may not cost you in the short term, but in the long term.”
Abrams noted that companies pulling back on DEI efforts aren’t going unnoticed, as consumers are responding with boycotts of major retailers like Target. This includes businesses that claim they’re scaling back solely to protect federal contracts under the Trump administration.
“I’m also less sympathetic to multi-billion dollar corporations that are concerned about losing a few contracts when they’re willing to sacrifice whole communities for that purpose,” Abrams said.
The
former Georgia gubernatorial candidate also pointed to corporations that are staying committed to DEI efforts, such as Costco, where the board of directors unanimously urged shareholders to reject an anti-DEI proposal earlier this year. Shareholders followed suit, voting it down by a 98% margin. Following that move, analytics released in March showed a rise in foot traffic from Black and Hispanic shoppers at Costco, while other retailers like Target experienced a decline in in-store visits.“Costco has
always been grounded in this responsibility. Therefore, irrespective of the change, they never had to change their policies, they never had to promote who they were,” Abrams said. “They simply are. And we can see the distinction between Costco and other institutions.”RELATED CONTENT: Howard Welcomes Stacey Abrams As Chair for Race and Black Politics