In January 2025, Donald Trump delivered a death knell, ending DEI within the federal government with executive orders and threatening to target companies that still supported it. Companies including Google, Goldman Sachs, McDonald’s and Walmart that had embraced DEI years earlier fell into line and announced an end to their policies.
But new research published on Friday and shared exclusively with the Guardian found that companies that resisted the pressure and kept their DEI practices, including Costco, Apple and Delta Air Lines, performed just as well as their competitors who pulled back.
For the research, Jacob Grumbach, an associate professor at at the University of California at Berkeley’s Goldman School of Public Policy, analyzed how S&P 500 companies fared after Trump’s January executive order. He used what economists define as “abnormal returns” – the difference between how a stock was expected to perform versus how it actually performed – to isolate the impact of a company’s DEI decision.
What he found was the firms that kept their DEI policies or voted down anti-DEI shareholder resolutions did just as well financially, even after Trump’s executive order, as firms that didn’t. In the days after the executive orders were signed, companies that kept their DEI policies actually performed better on the stock market than those that didn’t.
