Investors are reportedly setting their sights on firms like Goldman Sachs and JPMorgan Chase in an effort to end diversity, equity, and inclusion initiatives at these companies.
Groups like the National Center for Public Policy Research (NCPPR), the National Legal and Policy Center (NLPC), and the Heritage Foundation want the banks to alter the focus of their policies. According to the Wall Street Journal, they submitted proposals late last year challenging DEI practices at these large financial institutions.
These groups argue that DEI-focused business practices expose them and their shareholders to potentially costly litigation. According to NCPPR, for example, if even a small portion of Goldman’s and JPMorgan’s employees pursue legal action, they could be liable for billions in payouts.
Other equity holders in these banks could have an opportunity in the spring to vote on the proposed measures at their respective annual meetings.
This is not the first time these groups have targeted large companies to try and enact change. Apple, Starbucks, and Walmart have been the center of similar proposals, but none have yet to pass the vote.
In 2023, the Supreme Court ruled that race-based affirmative action in college admissions is unconstitutional. This ruling helped set the stage for other similar diversity-focused policies, like those used in the private sector, to come under scrutiny.
Last year, The Dallas Express reported that Microsoft acknowledged it was paying white employees less on average than other demographics, potentially violating Title VII of the Civil Rights Act.
DEI took another blow this week when President Donald Trump placed all federal government DEI staff on immediate leave. The move came a day after Trump signed an Executive Order terminating DEI programs across the federal government.
In addition to campaigning against DEI practices, the NLPC and the Heritage Foundation have delivered proposals to Bank of America and Citigroup, respectively, asking them to perform audits to determine whether they surveilled customers over political or religious beliefs.
Republicans in Congress have criticized Bank of America for cooperating with the FBI following the events at the Capital on January 6, 2021, and have accused it of persecuting Americans based on their religious or political affiliation, as reported by The Dallas Express.