Trump 2.0 and the looming dilution of progressive corporate initiatives are prompting closer scrutiny in Australian boardrooms and executive suites. This week, US juggernauts Meta and McDonald’s reset their fact-checking and diversity, equity, and inclusion (DEI) commitments signaling a decisive cultural shift in corporate America.
A simmering backlash against what some Americans perceive as “corporate virtue signaling” was already underway, but Donald Trump’s pending return to the White House appears poised to supercharge this conservative groundswell. His stance often reduces the concept of “diversity” to a hollow buzzword completely missing that genuine diversity fosters broader perspectives, innovative problem-solving, and fair representation.
Indeed, Trump’s resurgence comes on the heels of the 2023 Supreme Court ruling that dismantled race-based affirmative action at universities, and it coincides with a new crop of “anti-woke” online figures like Robby Starbuck who target companies such as Harley-Davidson and Jack Daniel’s parent Brown-Forman for championing policies meant to promote inclusion and sustainability. These critics, and Trump himself, portray diversity as little more than identity politics, revealing a lack of understanding about its real, tangible benefits for both society and businesses.
Under pressure to conform to the new conservative climate, Meta recently scrapped formal fact-checking on Facebook and Instagram, introducing “community notes” under the guise of “free speech.” But founder Mark Zuckerberg’s pivot plainly aims to placate Trump and align more closely with prevailing sentiments among certain constituents. Likewise, McDonald’s sidelining of once-mandatory supplier diversity pledges exemplifies the rapid momentum of this shift. Trump’s ongoing attacks on identity politics are moving boardroom decisions away from collaborative, inclusive policies and toward a narrower corporate ethos that undervalues the constructive power of genuine diversity.
Certainly, businesses should weigh in on key political and social topics that matter to their customers, employees, and stakeholders. Alongside addressing critical economic issues sometimes with collective voices like the Business Council of Australia they must also champion inclusive initiatives when those initiatives serve the public good. Major miners such as BHP and Rio Tinto, for instance, have contributed substantially to Indigenous employment programs evidence that embracing diversity strengthens entire industries and communities.
Trump’s frequent conflation of true diversity with mere tokenism reveals a profound gap in his understanding. Far from being “corporate virtue signaling,” real DEI frameworks give underrepresented voices a seat at the table and drive more equitable opportunities and outcomes. If American business leaders continue to cede ground to political pressure that misunderstands diversity, they risk turning back the clock on decades of progress both economic and social.
https://www.afr.com/politics/federal/corporates-should-pick-their-social-battles-carefully-20250110-p5l3cd
