Companies holding the line, working behind the scenes

There’s a delicate balance playing out at corporations across America.

As the Trump administration targets diversity, equity and inclusion initiatives, many prominent companies have publicly scaled back or scrapped their programs and goals for metrics such as employee and leadership representation. Others have insisted they will continue to support DEI, opening themselves up to political pressure — but also financial opportunity.

DEI professionals told CNBC that either strategy comes with tricky pros and cons: Brands seen as advocating for DEI could face legal challenges, but they also stand to benefit from the advantages of DEI and the loyalty of customers who share their values. Brands that publicly pull back may avoid the scrutiny of President Donald Trump and his allies, but risk stirring up controversy in an increasingly polarized environment.

Some companies, fearful of moving too loudly in either direction, may continue to support DEI internally, experts said, even as they stay silent publicly in order to avoid activist campaigns against them.

“I can’t be clear enough: DEI isn’t dying. It’s evolving,” said Daisy Auger-Domínguez, founder and CEO of workplace consulting firm Auger-Domínguez Ventures.

Trump signed an executive order on his first day in office ending all DEI programs across the federal government. He issued another order a day later demanding the Justice Department identify and potentially sue “the most egregious and discriminatory DEI practitioners.”

The White House’s hostility toward DEI has elevated the stakes for corporations already grappling with how to navigate the principles of diversity, equity and inclusion amid a growing culture war, experts said.

Several companies, such as Lowe’s and Ford, had begun rolling back DEI programs even before Trump’s election victory in November. In a statement to CNBC, Ford said it was committed to a “respectful and inclusive workplace for all employees.” On Nov. 25, Walmart said it was winding down some DEI-related efforts, though in a statement to CNBC this week, the retailer said it is focused on its values of “respect, integrity, service and excellence.”

In late January, Target issued an internal memo ending several DEI-related goals and partnerships and emphasizing a program centered on “belonging.” On Wednesday, Google said it will retire its aspirational hiring targets in light of the executive orders and recent court decisions. A Google spokesperson told CNBC in a statement this week it’s “committed to creating a workplace where all our employees can succeed and have equal opportunities.”

Others, including Caterpillar and 3M, told CNBC they are currently reviewing the executive orders to assess their implications.