Corporate Giants : In a bid to navigate potential legal challenges, at least six major U.S. companies, including JPMorgan Chase, have adjusted policies related to racial and ethnic representation, according to a Reuters review of corporate statements.
These modifications come in response to threats of lawsuits from conservative groups asserting that diversity, equity, and inclusion (DEI) programs amount to illegal discrimination and breach directors’ duties to investors. The changes made by the companies involve removing language that specifies certain programs for underrepresented groups or modifying goals for increased racial representation.
The companies subject to legal threats, such as JPMorgan and BlackRock, opted to adjust certain elements of their DEI initiatives. For instance, JPMorgan altered the descriptions of its “Advancing Hispanics & Latinos” and “Advancing Black Pathways” programs, broadening eligibility to all students, regardless of background. BlackRock removed language stating a scholarship was “designed for” specific underrepresented groups.
Also Read: Corporate Giants Soar Green: Cutting Business Travel Emissions Sparks Evolution
These adjustments underscore the broader conservative backlash against diversity initiatives that gained momentum following the protests in 2020 over racial injustice. Two conservative legal organizations, the American Civil Rights Project and America First Legal, have been sending public shareholder letters since 2021, challenging the legality of DEI programs and threatening legal action against companies.
While some companies, including JPMorgan and BlackRock, opted to make changes to specific elements of their DEI programs, others, including McDonald’s and Starbucks, did not publicly announce any modifications. The legal threats from conservative groups, including those from former President Donald Trump’s adviser Stephen Miller, have put major corporations on alert, prompting some to adapt their programs to avoid potential legal disputes.
The modifications made by these companies demonstrate the delicate balance they must strike between addressing legal challenges and continuing efforts to foster diversity and inclusion. The ongoing scrutiny of DEI programs, coupled with potential legal risks, highlights the complex landscape companies face as they navigate societal expectations, legal considerations, and the push for greater diversity and equity in corporate environments.
Our Reader’s Queries
What does giant mean in business?
The term “giant” is commonly used to describe a prosperous and sizeable business entity or nation. It is a countable noun that denotes an organization or country that has achieved significant success and growth. This term is often used to emphasize the magnitude and impact of the entity in question.
What is the largest mega corp in the world?
Since 2014, Walmart, the American retail giant, has held the title of the world’s largest company by revenue.
What is the biggest TNC?
The World Investment Report 1998: Trends and Determinants (WIR98) has revealed that General Electric, a US-based company, is the biggest transnational corporation (TNC) in the world in terms of foreign assets. Meanwhile, Daewoo Corporation, a TNC from the Republic of Korea, holds the title of the largest TNC from developing countries. This report sheds light on the current state of TNCs and their impact on the global economy.