Profits, Not D.E.I., Are Why Companies Exist
Published On Feb 21, 2025, 5:02 AM
The article discusses how many corporations are retracting their commitments to diversity, equity, and inclusion (DEI) initiatives and environmental sustainability in response to political pressures from the Trump administration. It notes that prominent companies like Target, Meta, Google, Goldman Sachs, Morgan Stanley, BlackRock, and Vanguard are scaling back their efforts on these fronts. This shift is portrayed as an expected reaction from businesses that prioritize profits over social commitments, in alignment with Milton Friedman's doctrine of focusing on maximizing shareholder value.
Stock Forecasts
GS
Negative
The retraction of DEI and sustainability commitments by major corporations may lead to public backlash and reputational harm, which could eventually impact their long-term profitability. However, companies like Goldman Sachs, Morgan Stanley, and the others mentioned are typically robust due to their core financial services, but their stock prices might see volatility in the short term as sentiments shift. Investors may want to watch for signs of recovery or further deterioration in corporate practices related to DEI and sustainability.
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