Berkeley set out to defend DEI — and found no financial upside

A new study meant to reassure corporations about diversity, equity, and inclusion programs has delivered an awkward finding for DEI advocates: Keeping the programs produced no measurable financial advantage over abandoning them.

Researchers at the University of California in Berkeley compared S&P 500 companies that maintained DEI after President Trump’s January 2025 executive order with companies that scaled back their commitments. Firms that kept their programs performed about as well in stock returns and revenue as those that retreated.

Whether a company favors DEI or rejects it, executives cannot assume that a politically popular label will protect conduct that violates anti-discrimination law.

The authors and sympathetic news coverage emphasized the other half of that result: Companies could keep DEI without suffering a significant financial penalty. CBS News framed