The news: Several banks including JPMorgan, Morgan Stanley, and Citigroup have reportedly adjusted or softened their public references to diversity, equity, and inclusion (DEI), per Forbes, despite recently stating they remain committed to DEI initiatives. Other banks such as Wells Fargo and Bank of America are also reviewing their DEI language.
How we got here: At a recent company town hall, JPMorgan CEO Jamie Dimon provided context into the bank’s direction. While he restated the bank’s longtime commitment to Black, Hispanic, and LGBTQ+ communities, he said JPMorgan planned to cut wasteful spending on some initiatives that “went too far,” per Bloomberg. But he denied this move resulted from pressures from the Trump administration and its anti-DEI movement.
And while many companies cite nonpolitical reasons for their DEI-related decisions, they face a litany of risks in such a polarized environment. They must evaluate legal and compliance perils when making these decisions—and determine whether they’re alienating current and targeted customers.