DEI Rebranded: How NJ Companies Are Navigating Trump’s New Orders

As former President Donald Trump rolls out measures to halt Diversity, Equity, and Inclusion (DEI) practices within federal agencies and discourages their use in the private sector, New Jersey businesses find themselves reevaluating their approaches to workplace diversity.

DEI, a framework designed to ensure fair opportunities for all individuals regardless of identity, race, or orientation, has long been a cornerstone of efforts to address inequities in workplaces, colleges, and government organizations. However, in recent years, these programs have faced growing political backlash, with some accusing them of fostering reverse discrimination.

DEI’s Changing Role in New Jersey Workplaces

In the wake of Trump’s actions and the broader political debate, many New Jersey companies are revising their DEI strategies. Carlos Medina, chair of the Statewide Hispanic Chamber of Commerce, noted that some organizations are quietly moving away from the term “DEI” while maintaining similar principles under different labels.

“I think people just want to lay low,” Medina explained. “They’re fine-tuning programs to make them race-neutral, focusing on broader definitions of discrimination without explicitly referencing race or ethnicity.”

These adjustments are driven by both political and legal concerns, as conservative activists and lawmakers increasingly target companies for alleged discrimination against white men and conservatives under DEI initiatives.

Trump’s Executive Order and Legal Implications

Trump’s recent executive order directs federal agencies to investigate large companies, universities, and organizations accused of practicing “illegal discrimination or preferences” under the guise of DEI. The order does not specify penalties but signals heightened scrutiny of diversity-focused hiring and promotion practices.

Kelly Ann Bird, head of employment and labor law at the Gibbons law firm, said that many employers are now seeking guidance on how to navigate this shifting landscape. “Employers are concerned about what these orders mean for their DEI programs, plans, and initiatives,” Bird noted.

Business Case for Diversity

Despite the political and legal challenges, Medina emphasized that hiring a diverse workforce remains a smart business strategy. In a state like New Jersey, where Hispanic residents make up 25% of the population, companies that fail to reflect the communities they serve risk losing market share to competitors.

“It’s still good business to hire a racially diverse staff,” Medina said. “If you don’t have people that look like us, we’ll go to your competitor that does.”

A Shift in Terminology

The political climate has prompted some organizations to rebrand their diversity efforts. Last year, the Society for Human Resource Management (SHRM) announced it would replace “DEI” with “I&D” (Inclusion and Diversity), dropping the word “equity” entirely.

While some companies have scaled back their DEI efforts, others remain committed to fostering inclusive workplaces, albeit with less public emphasis. A survey by the Association of Corporate Citizenship Professionals and YourCause found that 96% of corporate social impact professionals at major companies reported that DEI commitments had either stayed the same or increased in the past year.

Corporate Response to Political and Legal Risks

The scrutiny of DEI initiatives intensified after the U.S. Supreme Court’s 2023 decision limiting affirmative action in college admissions. This ruling, combined with Trump’s executive orders, has made many employers cautious about how they approach diversity policies.

“If you established a DEI program and rolled it out thoughtfully, you probably didn’t put your company in harm’s way,” Bird explained. “But companies that overextended without the right tools or resources may now face challenges.”

Several high-profile companies, including McDonald’s, Meta, John Deere, and Ford, have recently scaled back their DEI programs. At the same time, data shows a decline in diversity at the highest levels of corporate leadership. According to a study by the Conference Board and ESGAUGE, the percentage of new Black directors at Russell 3000 companies fell from 26% in 2022 to 12% in 2024, while the percentage of new white directors increased from 52% to 69%.

Balancing Commitments with Practicality

The backlash against DEI has led some organizations to reevaluate their commitments, with many shifting toward a more balanced approach. Michele Siekerka, President and CEO of the New Jersey Business and Industry Association, observed that some companies initially took on more than they could handle in the wake of the 2020 George Floyd protests.

“A lot of companies jumped to say, ‘We must do this tomorrow,’ without the tools and resources they needed,” Siekerka said. “Now the pendulum is starting to balance out a little more.”

The Future of DEI in New Jersey

While some companies have abandoned their DEI initiatives, others have maintained their commitments under different names. Medina believes that organizations with a genuine dedication to diversity will continue to prioritize it, even if they avoid the term “DEI.”

“It’s the companies that adopted DEI ‘for show’ that are discarding it now,” Medina said. “Those that were serious about it from the beginning are still doing the work, just differently.”

Public Perception and Challenges Ahead

Public opinion on workplace diversity remains divided. A 2023 Rutgers-Taft poll found that 56% of respondents did not consider diverse representation in the workplace essential. Additionally, a USA Today analysis revealed that women and people of color are still underrepresented in top executive roles and are more likely to occupy lower-paying positions with limited opportunities for advancement.

Despite these challenges, many advocates remain hopeful that DEI principles will endure, even if their implementation evolves in response to political and legal pressures.

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