Changes in corporate philanthropy, including companies reducing philanthropy related to equity, coincide with a government backlash against efforts to promote environmental, social and governance goals in the private and public sectors.

Beginning with his first few days in office last month, President Donald Trump has sought to scuttle many of his predecessor’s federal programs promoting DEI.

In a January 21 executive order, Trump also directed federal agencies to pressure the private sector into ending DEI initiatives.

Agency leaders, in cooperation with the attorney general, must submit reports by May 21 recommending how to “encourage the private sector to end illegal discrimination and preferences, including DEI,” according to the order.

The private sector has gotten the message. Vanguard on Friday adjusted its proxy voting guidelines for its engagement with U.S. companies, diluting its board composition recommendations on diversity.

The investment manager’s 2025 U.S. regional proxy voting guidelines exclude a recommendation from its prior-year rules stating that boards should “at a minimum, represent diversity of personal characteristics, inclusive of at least diversity in gender, race and ethnicity.”

While most companies plan to maintain their communication strategies on corporate citizenship, 37% are revising their language to “more neutral and inclusive” wording, the Conference Board said. The changes stem from “sensitivity to polarized social and political contexts.”

So-called corporate citizenship leaders this year view AI, employee-driven programs and “outcome-based philanthropy” as the most effective emerging philanthropic initiatives, the Conference Board said.

Corporate social responsibility strategies that promote education and economic opportunity “are directly linked to long-term business strategies — particularly in tight labor markets,” Andrew Jones, senior researcher at the Conference Board’s ESG Center, said in an email.

“Unlike more polarizing social issues, they have bipartisan support and deliver clear business ROI — strengthening talent pipelines, fostering economic stability in key markets and enhancing corporate reputation,” Jones said in response to questions.

“Even if broader political trends shift, the business case for these focus areas remains strong, making it likely they will persist beyond short-term cycles,” he said.

Read the full article about companies reducing equitable philanthropy by Jim Tyson at CFO Dive.