Which firms retreat from DEI language and why?

• In Event: Organizations, Occupations, and Work Section Roundtables
  In Refereed Roundtable (90 minute): Table 30: Diversity and Discrimination Policies

Abstract

When sociopolitical practices become politically contested, which firms retreat from prior discourse? We argue that retreat concentrates among firms with the strongest domain-specific reputations, not despite their visible engagement but because of it. High-reputation firms built reputations through extensive public discourse, creating discursive vulnerability, defined as disproportionate exposure to oppositional targeting when practices lose legitimacy. This vulnerability is amplified among firms with politically aligned stakeholders, who shape discourse to be more ideologically distinctive, increasing exposure to targeting. Using Fortune 500 firms' diversity, equity, and inclusion (DEI) language in 10-K filings (2015–2024), we find that high-ESG firms drove both the sharpest post-2020 expansion and the sharpest subsequent retreat, returning to baseline by 2024. This pattern is amplified among firms with Democratic-leaning employees. Our work treats retreat from discourse as a distinct strategic phenomenon; we show why the most previously committed firms are the quickest to retreat when institutional environments shift, and that stakeholder alignment amplifies rather than constrains strategic reversal.

Authors

• Genevieve Gregorich, Columbia Business School

• Simeng Wang

• Mabel Abraham, Columbia University