Latest news with #GravityResearch
Yahoo
08-07-2025
- Business
- Yahoo
Despite Trump backlash, DEI rollbacks are slowing. Here's why.
For months now, President Donald Trump's threat to strip federal contracts from corporations that stand by their diversity, equity and inclusion initiatives has driven a sharp U-turn in corporate America, with the private sector rushing to distance itself from policies that it once trumpeted. However, a new study tracking DEI changes within the nation's largest corporations reveals that the pace has slowed as the Trump administration has shifted its focus to other policy priorities, such as immigration and tariffs. The backlash against DEI gained steam during the 2024 presidential election but hit a fever pitch when Trump took office. His early executive orders aimed at eliminating 'illegal DEI' in the federal government and the private sector were the single-largest driving force behind the reforms that swept corporate America, Gravity Research found. 'President Trump's return to office created a seismic shift in the risk calculus for companies with DEI commitments,' said Joanna Piacenza, vice president of thought leadership with Gravity Research, which advises companies on social, political and reputational risks. 'Unlike earlier backlash driven by online activists, which focused on reputational and social media pressure, Trump's administration brought policy levers and legal authority.' Most of the policy shifts – 80% – tracked in Gravity Research's study of Fortune 1000 companies and sports leagues between June 2024 and May 2025 occurred after Trump's inauguration. But the rate slowed significantly following the post-inauguration push, Piacenza said. For example, 11 companies publicly announced in February that they would make major changes to diverse hiring targets and workforce and executive representation goals, but only two made those changes in May. 'The slowdown appears to reflect a 'wait-and-see' posture from companies,' Piacenza said. "With those initial policy adjustments now set in motion, companies appear to be reassessing further changes." Corporations that rushed to make changes following the inauguration were those with the most to lose: federal contractors and companies in highly regulated industries. Nearly three-quarters of the corporations that made post-inauguration DEI changes were federal contractors, the study showed. Of the DEI changes corporations made, the most significant was around hiring and representation goals, according to Gravity Research. Corporations also rebranded DEI efforts with more anodyne names such as 'inclusion and belonging' and changed the chief diversity officer title to 'vice president of talent strategy' or 'head of people engagement' after Trump's inauguration. Mentions of 'DEI' and related terms also vanished from corporate reports, regulatory filings and websites. Few companies dismantled employee resource groups but emphasized they are open to all employees and are aligned with business priorities such as professional development and networking. 'With federal agencies signaling that ERGs could be investigated as discriminatory, this issue may resurface as a reputational risk in the months ahead,' the Gravity Research study said. The Gravity Research study found that corporations are reframing but not retreating from DEI, with 80% affirming ongoing commitments to 'inclusion,' 'belonging,' or 'accessibility.' Business leaders are gaining confidence from pro-DEI shareholder votes and from the challenges faced by companies that have retreated on DEI, including declining sales, shrinking market caps and struggles attracting and retaining talent, said Carissa Romero, co-founder and managing director of the culture and inclusion platform Paradigm. Guidance issued by the Equal Employment Opportunity Commission in March also reassured corporations that the Trump administration would not view their strategies as 'illegal DEI.' Corporations are also facing growing pressure from pro-DEI activists who have mounted a string of boycotts protesting DEI rollbacks. It's unclear how much of an impact these boycotts are having on the bottom line, but Target cited its decision to end some diversity policies as a contributor to a sharp first-quarter pullback in consumer spending. 'Most companies know creating diverse workforces, fair processes that advance the best talent and inclusive environments where people who are different from one another can collaborate effectively is essential to long-term business success,' Romero said. 'These efforts aren't a 'nice to have,' they're strategic levers for innovation, performance and resilience.' Corporations could quickly change their tune if the Trump administration ramps up DEI enforcement, Piacenza said. Last week, the Labor Department's Office of Federal Contract Compliance Programs issued a letter inviting federal contractors to voluntarily disclose what steps they have taken to 'wind down' DEI programs. DEI critics like shareholder activist Paul Chesser accuse corporations of ducking Trump administration oversight and "snookering" customers and shareholders by making superficial changes to their policies while maintaining their commitment to diversity programs behind the scenes. Chesser, director of the National Legal and Policy Center's Corporate Integrity Project, calls it 'the head fake across corporate America to give the impression – with little or no evidence – that companies are eliminating DEI.' 'Companies that outside parties perceive as having made only cosmetic changes could face renewed scrutiny,' Piacenza said. This article originally appeared on USA TODAY: Despite Trump backlash, DEI rollbacks are slowing. Here's why.
The Herald Scotland
01-07-2025
- Business
- The Herald Scotland
Despite Trump backlash, DEI rollbacks are slowing. Here's why.
The backlash against DEI gained steam during the 2024 presidential election but hit a fever pitch when Trump took office. His early executive orders aimed at eliminating "illegal DEI" in the federal government and the private sector were the single-largest driving force behind the reforms that swept corporate America, Gravity Research found. "President Trump's return to office created a seismic shift in the risk calculus for companies with DEI commitments," said Joanna Piacenza, vice president of thought leadership with Gravity Research, which advises companies on social, political and reputational risks. "Unlike earlier backlash driven by online activists which focused on reputational and social media pressure, Trump's administration brought policy levers and legal authority." Most of the policy shifts - 80% - tracked in Gravity Research's study of Fortune 1000 companies and sports leagues between June 2024 and May 2025 occurred after Trump's inauguration. But the rate slowed significantly following the post-inauguration push, Piacenza said. For example, 11 companies publicly announced in February they would make major changes to diverse hiring targets and workforce and executive representation goals, but only two made those changes in May. "The slowdown appears to reflect a 'wait-and-see' posture from companies," Piacenza said. "With those initial policy adjustments now set in motion, companies appear to be reassessing further changes." Corporations made these DEI changes Corporations that rushed to make changes following the inauguration were those with the most to lose: federal contractors and companies in highly regulated industries. Nearly three-quarters of the corporations that made post-inauguration DEI changes were federal contractors, the study showed. Of the DEI changes corporations made, the most significant was around hiring and representation goals, according to Gravity Research. Corporations also rebranded DEI efforts with more anodyne names such as "inclusion and belonging" and changed the chief diversity officer title to "vice president of talent strategy" or "head of people engagement" after Trump's inauguration. Mentions of "DEI" and related terms also vanished from corporate reports, regulatory filings and websites. Few companies dismantled employee resource groups but emphasized they are open to all employees and are aligned with business priorities such as professional development and networking. "With federal agencies signaling that ERGs could be investigated as discriminatory, this issue may resurface as a reputational risk in the months ahead," the Gravity Research study said. DEI retreat or 'head fake'? The Gravity Research study found that corporations are reframing but not retreating from DEI, with 80% affirming ongoing commitments to "inclusion," "belonging," or "accessibility." Business leaders are gaining confidence from pro-DEI shareholder votes and from the challenges faced by companies that have retreated on DEI, including declining sales, shrinking market caps and struggles attracting and retaining talent, said Carissa Romero, co-founder and managing director of the culture and inclusion platform Paradigm. Guidance issued by the Equal Employment Opportunity Commission in March also reassured corporations that the Trump administration would not view their strategies as "illegal DEI." Corporations are also facing growing pressure from pro-DEI activists who have mounted a string of boycotts protesting DEI rollbacks. It's unclear how much of an impact these boycotts are having on the bottom line, but Target cited its decision to end some diversity policies as a contributor to a sharp first-quarter pullback in consumer spending. "Most companies know creating diverse workforces, fair processes that advance the best talent and inclusive environments where people who are different from one another can collaborate effectively is essential to long-term business success," Romero said. "These efforts aren't a 'nice to have,' they're strategic levers for innovation, performance and resilience." Corporations could quickly change their tune if the Trump administration ramps up DEI enforcement, Piacenza said. Last week the Labor Department's Office of Federal Contract Compliance Programs issued a letter inviting federal contractors to voluntarily disclose what steps they have taken to "wind down" DEI programs. DEI critics like shareholder activist Paul Chesser accuse corporations of ducking Trump administration oversight and "snookering" customers and shareholders by making superficial changes to their policies while maintaining their commitment to diversity programs behind the scenes. Chesser, director of the National Legal and Policy Center's Corporate Integrity Project, calls it "the head fake across corporate America to give the impression - with little or no evidence - that companies are eliminating DEI." "Companies that outside parties perceive as having made only cosmetic changes could face renewed scrutiny," Piacenza said.
Fashion Network
30-06-2025
- Business
- Fashion Network
Fashion industry shows a quieter presence for Pride 2025
Over the past decade, Pride Month has become a major touchpoint for the fashion industry, often marked by bold campaigns and colorful collections. But in 2025, participation has noticeably declined. Although Pride marches took place last weekend in key cities—from Milan and Madrid to Paris and Budapest—many brands scaled back their involvement amid mounting conservative backlash, particularly from the United States. In the weeks before June, Gravity Research published its annual report on corporate participation in LGBTQIA+ celebrations. The '2025 Pride Pulse Insights' study—based on input from corporate executives—found that 39% of companies planned to reduce their involvement in Pride 2025. Notably, no brands indicated plans to expand their participation. Conservative backlash impacts Pride strategy Growing conservative pressure was the primary reason cited for this retreat, with many respondents pointing to recent political shifts. According to Gravity Research, 61% of decision-makers directly referenced the influence of the Trump administration as a key factor behind their reduced engagement. On June 27, media analytics firm Onclusive released its 'Pride Month 2025 Pulse' report, which tracked how brands showed up during the season. Based on 7.8 million mentions on social media and 104,000 in traditional media between May 1 and June 20, the report showed a clear drop in visibility: fewer public campaigns, the removal of Pride-focused website pages, reduced sponsorship of parades, and a near-total silence on official social channels. Instead of exiting entirely, some brands chose to adjust their approach. Rather than centering their messaging solely on the LGBTQIA+ community, many shifted to broader themes of inclusion, aiming to appeal to a wider range of identities and audiences. Luxury: the usual absence from Pride Month Some luxury players, including LVMH, opted for internal-only recognition of Pride Month. After launching the All LVMH Pride France employee network in 2022, the group was visible at Pride marches in France in 2023 and 2024 and proudly shared its participation. However, this year, the company remained silent on its website and social channels. The collective continues its internal advocacy efforts, as shown in a video published in March on the Inside LVMH platform, in which employees detail their ongoing initiatives. Broadly speaking, major luxury labels such as Loewe, Chanel, Hermès, and Saint Laurent have rarely participated in Pride Month initiatives. Still, some notable exceptions remain: Versace continues to show active support for the LGBTQIA+ community under Donatella Versace 's leadership, while Erdem launched a unisex Pride T-shirt, with proceeds benefiting the AKT and Not A Phase organizations. Ready-to-wear brands take the lead during Pride Unlike the luxury segment, ready-to-wear and mass-market brands have remained at the forefront of Pride Month initiatives. This year, several labels released dedicated collections, with some linking product launches to charitable donations. Converse stood out as one of the most visible participants, unveiling ultra-high sneakers decorated with bold rainbow flames. Diesel skipped rainbow-colored jeans in favor of garments featuring images of same-sex couples and scenes from gay nightclubs. The brand collaborated with the Tom of Finland Foundation, which preserves the artist's homoerotic artwork. Betsey Johnson 's namesake brand unveiled an extensive Pride collection filled with accessories and heels, booties, and boots decorated with rhinestones, butterflies, flowers, and bold colors. One dollar from each sale will be donated to the Elton John AIDS Foundation, which is already a partner of Versace. Other brands contributed through symbolic and artistic expressions. Saucony released three sneaker styles inspired by artist Keith Haring. Nike reimagined its classic silhouettes with the help of women athletes from the WNBA. Subtle details replace bold Pride branding Some brands opted for a more understated approach this year, moving away from traditional rainbow designs in favor of muted tones like beige. Influencer Connor Clary called out the trend in his content, reviewing Pride pieces from Abercrombie & Fitch, J.C. Penney, and Target. Many of these items could easily be mistaken for non-Pride merchandise, with only small rainbow accents—like stitched logos or trim—hinting at their intended message. Puma, Vans, and Levi's took similar routes. In Levi's case, a rainbow logo on the back of a denim jacket was the only clear Pride reference. The brand, however, maintained its tradition of donating $100,000 to Outright International. Primark 's Pride offering was similarly low-key, featuring around 30 products. Only select pieces—such as tote bags, umbrellas, and one screen-printed T-shirt—directly referenced Pride. The rest of the line included short skirts, crocheted pieces, slim tops, and boots, designed in a way that could blend into everyday collections. Reiss, for its part, relied on cream tones and varying shades of blue, emphasizing oversized fits more than overt Pride symbols. This shift toward subtlety across multiple ready-to-wear brands may reflect a reframed commitment—one shaped by a sociopolitical climate that's less receptive to overt minority support. 'Pride Month 2025 seems to mark the end of an era of essentially symbolic marketing, in favor of a more discreet, but potentially more sincere and lasting commitment,' said Onclusive optimistically.
Fashion Network
30-06-2025
- Business
- Fashion Network
Fashion industry shows a quieter presence for Pride 2025
Over the past decade, Pride Month has become a major touchpoint for the fashion industry, often marked by bold campaigns and colorful collections. But in 2025, participation has noticeably declined. Although Pride marches took place last weekend in key cities—from Milan and Madrid to Paris and Budapest—many brands scaled back their involvement amid mounting conservative backlash, particularly from the United States. In the weeks before June, Gravity Research published its annual report on corporate participation in LGBTQIA+ celebrations. The '2025 Pride Pulse Insights' study—based on input from corporate executives—found that 39% of companies planned to reduce their involvement in Pride 2025. Notably, no brands indicated plans to expand their participation. Conservative backlash impacts Pride strategy Growing conservative pressure was the primary reason cited for this retreat, with many respondents pointing to recent political shifts. According to Gravity Research, 61% of decision-makers directly referenced the influence of the Trump administration as a key factor behind their reduced engagement. On June 27, media analytics firm Onclusive released its 'Pride Month 2025 Pulse' report, which tracked how brands showed up during the season. Based on 7.8 million mentions on social media and 104,000 in traditional media between May 1 and June 20, the report showed a clear drop in visibility: fewer public campaigns, the removal of Pride-focused website pages, reduced sponsorship of parades, and a near-total silence on official social channels. Instead of exiting entirely, some brands chose to adjust their approach. Rather than centering their messaging solely on the LGBTQIA+ community, many shifted to broader themes of inclusion, aiming to appeal to a wider range of identities and audiences. Luxury: the usual absence from Pride Month Some luxury players, including LVMH, opted for internal-only recognition of Pride Month. After launching the All LVMH Pride France employee network in 2022, the group was visible at Pride marches in France in 2023 and 2024 and proudly shared its participation. However, this year, the company remained silent on its website and social channels. The collective continues its internal advocacy efforts, as shown in a video published in March on the Inside LVMH platform, in which employees detail their ongoing initiatives. Broadly speaking, major luxury labels such as Loewe, Chanel, Hermès, and Saint Laurent have rarely participated in Pride Month initiatives. Still, some notable exceptions remain: Versace continues to show active support for the LGBTQIA+ community under Donatella Versace 's leadership, while Erdem launched a unisex Pride T-shirt, with proceeds benefiting the AKT and Not A Phase organizations. Ready-to-wear brands take the lead during Pride Unlike the luxury segment, ready-to-wear and mass-market brands have remained at the forefront of Pride Month initiatives. This year, several labels released dedicated collections, with some linking product launches to charitable donations. Converse stood out as one of the most visible participants, unveiling ultra-high sneakers decorated with bold rainbow flames. Diesel skipped rainbow-colored jeans in favor of garments featuring images of same-sex couples and scenes from gay nightclubs. The brand collaborated with the Tom of Finland Foundation, which preserves the artist's homoerotic artwork. Betsey Johnson 's namesake brand unveiled an extensive Pride collection filled with accessories and heels, booties, and boots decorated with rhinestones, butterflies, flowers, and bold colors. One dollar from each sale will be donated to the Elton John AIDS Foundation, which is already a partner of Versace. Other brands contributed through symbolic and artistic expressions. Saucony released three sneaker styles inspired by artist Keith Haring. Nike reimagined its classic silhouettes with the help of women athletes from the WNBA. Subtle details replace bold Pride branding Some brands opted for a more understated approach this year, moving away from traditional rainbow designs in favor of muted tones like beige. Influencer Connor Clary called out the trend in his content, reviewing Pride pieces from Abercrombie & Fitch, J.C. Penney, and Target. Many of these items could easily be mistaken for non-Pride merchandise, with only small rainbow accents—like stitched logos or trim—hinting at their intended message. Puma, Vans, and Levi's took similar routes. In Levi's case, a rainbow logo on the back of a denim jacket was the only clear Pride reference. The brand, however, maintained its tradition of donating $100,000 to Outright International. Primark 's Pride offering was similarly low-key, featuring around 30 products. Only select pieces—such as tote bags, umbrellas, and one screen-printed T-shirt—directly referenced Pride. The rest of the line included short skirts, crocheted pieces, slim tops, and boots, designed in a way that could blend into everyday collections. Reiss, for its part, relied on cream tones and varying shades of blue, emphasizing oversized fits more than overt Pride symbols. This shift toward subtlety across multiple ready-to-wear brands may reflect a reframed commitment—one shaped by a sociopolitical climate that's less receptive to overt minority support. 'Pride Month 2025 seems to mark the end of an era of essentially symbolic marketing, in favor of a more discreet, but potentially more sincere and lasting commitment,' said Onclusive optimistically.
Axios
20-06-2025
- Business
- Axios
Charlotte Pride prepares for deficit as corporate sponsors scale back
Charlotte Pride is navigating how to prepare for its annual festival and parade as corporate sponsors turn away from supporting LGBTQ+ organizations across the country. Why it matters: Meredith Thompson, Charlotte Pride's managing director, tells Axios she expects the organization to face a financial deficit heading into their annual parade and festival in August. The Pride Festival will be Aug. 16-17 in First Ward Park and surrounding streets — a shift from its previous home on South Tryon. Context: The risk for engaging around LGBTQ+ issues has increased 42% since this time last year, according to GravityResearch insights, as Axios' Eleanor Hawkins reported. Axios has confirmed companies like Verizon and Walmart are scaling back support in parades across the country. State of play: Some sponsors have stepped back, while others have chosen to remain involved while keeping their name quiet or have decided to support other programming Charlotte Pride offers year-round. Charlotte Pride declined to name specific companies that have decreased their support this year, however. What they're saying: "When a sponsor says, 'I want to support you, but I want to do it quietly and I don't want to be visibly aligned with Pride,' that's sort of hard to hear over and over, because our mission is visibility," Thompson says. There are also sponsors she has yet to hear back from. The latest: Mecklenburg County's fiscal year 2026 budget allocated $125,000 in economic development dollars for Charlotte Pride. Between the lines: Contracts with festival sponsors are often on an annual basis. Some of the sponsors for the upcoming festival include Krispy Kreme, Novant Health, McDonald's, Adams Beverage, PNC Bank and Bank of America. By the numbers: It costs roughly $760,000 to put the festival on. That's just hard costs, Thompson says. It doesn't include expenses like payroll. "It costs a lot of money to put on a free event of this size," Thompson says. "It's totally worth it for us and for the city." The festival generated $15.8 million in total economic impact in 2023, according to Charlotte Pride's website, which reflects data from the Charlotte Regional Visitors Authority, Thompson says. The festival also accounted for more than 16,500 hotel rooms. The big picture: Charlotte Pride is leaning on individual donors and grant funding to continue to host the city's largest annual event that attracts roughly 250,000 people a year, Thompson says. About 10,000 people have marched in the parade annually in recent years. There will be a ticketed VIP section during the festival. Proceeds from ticket sales will support future festivals. Thompson says the goal is to keep the festival and the parade free, but they are considering more ticketed programming for future festivals to help make ends meet. The bottom line: "I feel like there is such a vibrant LGBTQ and ally community in Charlotte that I just can't see us diminishing or going away," Thompson says. "It's not going to be easy though."
