The rise of anti-diversity initiatives in the U.S., amplified by Donald Trump’s election, is impacting local subsidiaries’ performance
02/19/2025
On Saturday (8), executive Daniela da Silva Sapin announced her voluntary resignation from Meta via LinkedIn. Ms. Sapin had served as head of public policy for WhatsApp in Brazil for a year and shared in her post that she has spent her career advocating for an open internet, greater transparency, and, more recently, a technology sector that is more responsive to the public interest.
“The recent announcements at Meta, in my opinion, have tipped the balance between my ability to act in favor of these goals from inside vs. outside the company. A corporation aligning itself politically and economically with a powerful, newly elected government is nothing new to anyone. However, the speed and intensity of Meta’s rhetorical turn and the adherence to an ideological base so different from the values that guided my work until then—particularly the integrity and security measures implemented at WhatsApp in recent years—this is simply not something I can understand, let alone support,” she said in her post.
In another part of her message, Ms. Sapin expressed empathy for her colleagues, acknowledging the timing of her resignation: “To the now former colleagues, I know that this announcement comes at a peculiar time, as there will soon be more changes and more departures in the company. I wish you strength and resilience.” When contacted by Valor, the executive stated that her thoughts had been fully conveyed through her post. Meta did not respond to an interview request.
Although Ms. Sapin’s resignation is an isolated case, it may signal broader consequences as companies like Meta, McDonald’s, Walmart, Disney, and Accenture scale back their diversity, equity, and inclusion (DE&I) initiatives. These moves, driven in part by the anti- “woke” sentiment encouraged by U.S. President Donald Trump, could resonate in other markets and provoke pushback from professionals who oppose such shifts.
On Thursday (6), consulting firm Accenture announced it would discontinue its diversity and inclusion targets. Julie Sweet, the company’s CEO, shared a statement with employees outlining the company’s new corporate strategy, which includes three key changes: the elimination of global diversity targets established in 2017 and updated in 2020, the cessation of career development programs for specific demographic groups, and a pause in participation in external diversity benchmarking surveys.
“We will implement the updates outlined above and continue to refine our talent strategy, assessing our policies and practices to ensure they align with our business strategy, remain effective and inclusive, meet the needs of all our employees, comply with applicable global laws, and adapt to the changing landscape,” said Ms. Sweet in her statement. She also emphasized that the corporation would maintain its global equal pay initiatives.
Ms. Sweet’s email raised concerns among Brazilian employees, particularly those from specific demographic groups, such as Black individuals and the LGBTQIA+ community. “People’s first reaction was disappointment because they had always felt safe and welcomed at Accenture. The statement quickly became the talk of the office, and many feared it signaled the end of all diversity policies. The feeling is that the conservative wave in the U.S. could soon reach Brazil,” said one manager, who requested anonymity.
In response to the fallout, Ms. Sweet hosted a live video chat with employees worldwide last Monday (10). During the session, she delivered a brief initial statement and addressed questions. According to the manager, Ms. Sweet clarified that the removal of diversity targets did not imply a diminished commitment to diversity, equity, and inclusion (DE&I), nor would the company stop supporting these groups. “Between the lines, Sweet acknowledged the pressure from the U.S. government and shareholders over potential business impacts if no changes were made. She seemed visibly uncomfortable,” the manager said. As of now, there has been no communication from the leadership in Brazil.
Meanwhile, a week earlier, Google confirmed that it would abandon its diversity hiring targets and was re-evaluating its DE&I programs. The company also removed several commemorative observances—such as LGBT Culture Month, Black History and Indigenous Peoples Month, Holocaust Remembrance Day, Jewish Heritage Day, and Hispanic Heritage Day—from its standard and online calendars.
When contacted by Valor in Brazil, Google reiterated its commitment to fostering a workplace where all employees can thrive and have equal opportunities. The company also noted its role as a supplier to the U.S. government: “As a federal supplier, our teams are reviewing the changes required by recent court rulings and executive orders on this subject [diversity programs].”
In Brazil, there is uncertainty among employees about whether and when the new guidelines adopted by the company in the U.S. will be implemented across its global operations. “The situation is still one of observation; there is little clarity about what will happen in the coming months,” said one manager, who requested anonymity.
In Brazil, Uber has also ceased its involvement with the LGBTQAI+ Business and Rights Forum. This key initiative has been bringing together companies committed to promoting rights and inclusion for the community since 2013. The Forum, which includes more than 160 signatories, including Coca-Cola, Dow, Google, Microsoft, and prominent Brazilian companies like Vale, Natura, Gerdau, and Petrobras, did not disclose the reasons behind Uber’s decision to leave. “We received this news with great disappointment because Uber has always played a crucial role within the Forum,” said Reinaldo Bulgarelli, the Forum’s executive secretary. “It is up to the company to explain why it chose to leave.”
When asked about its departure, Uber explained that the decision is part of an ongoing review of the budget and impact of its local initiatives, a process that is not expected to be completed before the response deadline set by the Forum. The company reiterated its commitment to diversity, equity, and inclusion and emphasized its continued engagement with other initiatives and partners.
Similarly, IBM exited the Forum last year, although the company declined to comment on the matter.
The review of budgets and resources also led to changes at Qualicorp, a health insurance administrator, which dismantled its DE&I management department. According to a source with knowledge of the situation, this restructuring was part of a broader process in which the company reformed policies and implemented layoffs across various departments in an effort to reduce costs.
When contacted, the company stated that no internal actions had been finalized and emphasized that its DE&I program remains a core pillar of its “DNA and culture.” The organization reiterated its commitment to promoting diversity and inclusion, highlighting a workforce predominantly composed of women, including 60% in leadership positions. It also noted that it continues to conduct an annual diversity and inclusion census to “plan more targeted actions fostering a culture of respect for all people.”
Tatiana Iwai, coordinator of Insper’s Center for Business Studies and a professor of leadership behavior, suggests that this moment could serve as a defining test for identifying executives who “truly believe in what they say.” “When the agenda is gaining momentum, it’s easy to join in and say, ‘I support it.’ But when the agenda faces scrutiny, leaders and executives are put to the test,” she explains.
“Those advocating for ethical leadership, aiming to create fair and inclusive teams, now have the opportunity to demonstrate their commitment. This is when they begin to solidify their reputation. It’s time to show that their words align with their actions,” she adds.
However, Ms. Iwai also acknowledges the persistent resistance to DE&I initiatives within organizations. “In times of external polarization, this underlying resistance within companies often becomes more pronounced,” she notes. “It’s likely that many organizations will see the momentum for representation slow down, as the agenda is no longer perceived as an urgent priority.”
Ms. Iwai further observes that even when the DE&I agenda had widespread attention and significant investments, progress in representation was not advancing at the expected pace. “Given that these programs are now under scrutiny, linking investments to tangible outcomes and business results may become essential. This connection, which was unclear before, may now need to be more explicitly emphasized,” she suggests.
Adriana Prates, CEO of Dasein, an executive recruitment consultancy, argues that diversity initiatives have become a competitive advantage, particularly in attracting and retaining talent from younger generations who prioritize inclusive environments aligned with social purpose. “Backpedaling on these actions could alienate qualified professionals who are seeking companies with more diverse and innovative cultures,” she warns.
“On the other hand, factors such as professional development, inspiring leadership, and growth opportunities continue to significantly influence talent retention and attraction,” she says. “The impact will, therefore, depend on how these elements balance with the company’s ability to effectively communicate its values and commitments.”
André Freire, managing partner of the consultancy Exec, argues that companies retracting their DE&I initiatives may face higher turnover. “Professionals from minority groups may feel undervalued or excluded,” he warns. “Companies that fail to invest in diversity risk being perceived as outdated or insensitive.”
Ms. Iwai observes that, until now, organizations have embraced DE&I programs with the genuine intention of creating fairer work environments. However, as some companies begin to roll back these actions, employees will likely question the authenticity of these initiatives. “When these programs are revived in the future, they may be met with greater skepticism, and the effort to reintegrate them will likely be more challenging,” he explains.
Mr. Freire further notes that ending DE&I targets could negatively impact innovation, as diverse teams tend to foster greater creativity. Nevertheless, he believes the decline in diversity initiatives may not be as pronounced as it seems. “It’s striking when large companies widely publicize their pullback from these actions. But I still think the diversity movement is growing because many companies are just now beginning to adopt it,” he says.
“We need to consider the extent of this reduction,” ponders Ms. Iwai. “We’re observing an initial trend, but what’s the speed and scale of this retreat? It’s crucial to determine whether there is a total halt. Not all organizations are completely stopping; some may have scaled back or paused certain initiatives, while others continue.”
*By Fernanda Gonçalves e Michael Esquer
(Rafaela Zampolli contributed reporting.)
Source: Valor International