February 23rd 2025.
On February 20, Citigroup announced that it would be scaling back its diversity, equity, and inclusion commitments that were made in 2020. This decision came in the wake of a change in the political climate, which no longer supports such initiatives. Along with several other U.S. businesses and banks, Citigroup had initially made these commitments in response to the tragic killings of George Floyd and Breonna Taylor.
According to an internal memo sent to employees by CEO Jane Fraser, Citigroup will be renaming its "diversity, equity, and inclusion and talent management" team to "talent management and engagement." The memo also states that the bank will no longer have "aspirational representation goals" and will not require diversity in job candidates or interview panels, except where required by local law. This decision was made due to the growing hostility towards DEI initiatives from the Trump Administration.
In September 2020, Citigroup had announced its Action for Racial Equity, which included specific pledges to support Black Americans and other communities of color. This included a commitment to "advance anti-racist practices" within the company and the financial services industry. At the time, CEO Jane Fraser had stated, "We are meeting the challenge of helping close the racial wealth gap with urgency. In just one year since launching Action for Racial Equity, we have already invested $1 billion into initiatives expanding economic opportunity for communities of color."
However, Citigroup is not the only company to retract or modify their DEI commitments due to pressure from the Trump Administration. Many other companies, including Pepsi, JP Morgan Chase, and Bank of America, have also made similar decisions. This corporate whiplash, as described by organizational theory expert Simon Blanchette, is a result of the Trump Administration's clear opposition to diversity, equity, and inclusion. Blanchette also refers to this phenomenon as "diversitywashing," where companies only show support for social causes when it is beneficial for their image.
When corporations make these commitments and then backtrack due to political pressure, it sends a message that their support for DEI was merely a strategic move to improve their brand image. This has been evident in recent events, such as the conservative backlash and Florida lawsuit against Target for their diversity initiatives. It is clear that companies need to ensure their commitment to diversity, equity, and inclusion is genuine and not just a temporary trend.
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