Disney dumps two DEI programs as investors pressure company to axe more woke initiatives: SEC filing

Core Viewpoint - Disney is reportedly retracting its diversity, equity, and inclusion (DEI) policies amid pressure from activist investors and the Trump administration, indicating a potential shift in corporate strategy [1][6]. Group 1: Changes in DEI Policies - Disney has removed its "Reimagine Tomorrow" program from the DEI section of its 2024 SEC 10-K report, which was previously mentioned in the 2023 report [1][5]. - The initiative aimed for 50% of regular and recurring characters to come from "underrepresented groups," but faced backlash after a leaked Zoom call in 2022 [2][6]. - The company has also eliminated "The Disney Look" appearance guidelines from the DEI section in its SEC filing, suggesting a broader retreat from DEI commitments [4][5]. Group 2: External Pressures and Reactions - The removal of DEI policies is partly a response to Florida's "Don't Say Gay" law, which restricts discussions of gender identity and sexual orientation in schools [6][7]. - Companies like Meta and John Deere have also rolled back their DEI programs, while others like Apple and Costco have resisted such changes [7]. - The Trump administration has initiated investigations into companies' DEI practices, contributing to a climate of scrutiny and pressure on corporations [8][10]. Group 3: Legal and Financial Implications - Target is facing a class action lawsuit from shareholders who claim the company misled investors about the risks associated with its DEI initiatives, which reportedly led to consumer boycotts and a decline in stock price [9]. - Concerns are growing regarding the financial justification for DEI programs, with calls for data demonstrating their positive impact on the bottom line [8].