The Gen Z Perspective: Young investors will hold companies to account for paring diversity efforts

July 14, 2025 at 10:46 AM EDT

When companies pull back, Gen Z pushes forward

I’ve read my fair share about companies quietly pulling away from their DEI efforts in hopes that their younger audience wouldn’t take notice.

But if there’s anything I know about my generation, it’s that we are keen on detail and making sure we are educated on the recent changes. If we notice companies walking back diversity policies … let’s just say we’re a generation also known for cancelling and boycotting when they don’t meet our standards.

It expands beyond the younger generations as well. Like seriously. My mom has forbidden any Target shopping since they’ve cut back on DEI initiatives (and boy, do I miss those Target runs🥲).

Big-name companies, from Meta and Amazon to T-Mobile and McDonald’s (sorry for the cold-calling, but it needs to be done), are removing dedicated teams, scrubbing their diversity goals from their reports and shelving public commitments.

As we all know, there’s been a mix of political pressure and executive orders attacking DEI, backed by agencies like the Federal Communications Commission and Supreme Court rulings.

This corporate pivot is met with the farthest thing from silence – it’s sparking backlash from Gen Z and Millennials who see DEI as more than corporate branding. When companies retreat from DEI, it sends a message, intentional or not: these values are expendable. For a generation that values authenticity and accountability, that kind of move sticks.

DEI went from being the corporate buzzword in 2020 to getting ghosted by some companies in 2025. And with Gen Z being one of the most diverse generations in the U.S., we don’t just “appreciate” inclusion — we expect it.

We grew up questioning systems, challenging the status quo and demanding more from the brands we support and the places we work. So, yeah, it’s a major red flag for us when companies are walking back their commitments. And if you know my generation, you know that a lot of us take our frustration to TikTok or Instagram to spread and fuel the uproar.

Yes, we know the pressure is real – budgets are tight and politics are (very) messy. But DEI is special in that it’s part of what makes a company worth supporting. If you’re a company talking about sustainability, social impact or values-driven investing, but ignoring DEI? Simply put: what are you doing? It doesn’t add up.

While some companies are pulling back, the ones doubling down on their values? They’re the ones building trust and our respect, as well as winning long-term. DEI isn’t over. It’s evolving. And we’re not just watching … we’re holding receipts.

See you next week,

Maddy Forlenza

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The Gen Z Perspective: Young investors will hold companies to account for paring diversity efforts

When companies pull back, Gen Z pushes forward

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