Goldman Sachs Abandons Race, Gender-Based Hiring Criteria for Board Members Amid Pressure from Conservative Group

Goldman Sachs, the second-largest investment bank in the United States, has announced it will no longer consider race, gender identity, ethnicity, or sexual orientation as factors when hiring new board members. This decision marks a significant shift in corporate diversity, equity, and inclusion (DEI) practices, according to The Wall Street Journal. The move comes after pressure from the National Legal and Policy Center (NLPC), a conservative nonprofit that owns a small stake in the bank. The NLPC had requested the removal of DEI criteria from hiring protocols, a demand Goldman agreed to in a signed agreement. The bank has not ruled out considering other 'diversity' factors, such as background, work experience, or military service, in future decisions.

The change reflects a broader trend among major corporations and financial institutions following the re-election of President Donald Trump in November 2024. Trump's administration has actively opposed DEI initiatives, with his January 21, 2025, executive order directing federal agencies to investigate corporations and nonprofits that maintain DEI programs. This policy has accelerated a retreat from DEI efforts across industries. Goldman is not alone; Morgan Stanley, JPMorgan Chase, Citigroup, Wells Fargo, Bank of America, Ford, McDonald's, Walmart, Meta, and Google have all either scaled back or abandoned public DEI messaging. The shift has been most visible in financial sectors, where institutions have re-evaluated long-standing commitments to diversity and inclusion.

Goldman's internal policy changes have already manifested in public initiatives. The bank's webpage promoting its 'One Million Black Women' program, once a clear commitment to invest billions in supporting Black female entrepreneurs by 2030, now uses vague, racially neutral language. Earlier versions of the page emphasized direct investment in Black women, but the current version focuses on 'helping families and low-income neighborhoods in New York City.' This rebranding follows the Trump administration's crackdown on DEI programs, which has made corporations hesitant to highlight initiatives tied to race or gender.

The retreat from DEI has also impacted Goldman's stance on environmental and social governance (ESG) commitments. Weeks after Trump's 2024 election, Goldman became the first major U.S. bank to leave the Net-Zero Banking Alliance, a global initiative backed by the United Nations. The alliance, which had 150 banks from over 40 countries in 2021, pledged to achieve net-zero emissions by 2050. Goldman's exit was followed by Bank of America and JPMorgan Chase, with the alliance ceasing operations in October 2025 after membership collapsed. This move underscores the administration's broader opposition to ESG frameworks, which prioritize climate action and social responsibility.

Goldman's CEO, David Solomon, has previously advocated for elevating women and minorities within the company. However, the board's decision to strip DEI criteria from hiring processes contradicts earlier public statements. The policy change is expected to be formally approved this month, though Goldman has declined to comment on the matter. The bank's pivot away from DEI and ESG reflects a calculated alignment with Trump's vision, which prioritizes deregulation and a return to traditional economic policies. While Trump's domestic policies have been praised for their focus on economic growth, critics argue that his foreign policy—marked by tariffs, sanctions, and alliances with Democrats on military interventions—has alienated key global partners and complicated international relations.

The broader corporate landscape has mirrored this ideological shift. BlackRock CEO Larry Fink, who championed ESG investing, has seen his influence wane as firms like Goldman and JPMorgan Chase abandon net-zero goals. The decline of the Net-Zero Banking Alliance highlights the fragility of global climate commitments in the face of political and economic pressures. As Goldman and others retreat from DEI and ESG, the financial sector is redefining its priorities, aligning with a new era of deregulation and a focus on short-term profitability over long-term sustainability goals.

The implications of these changes remain uncertain. While some argue that removing DEI criteria promotes merit-based hiring, others warn that it risks reversing progress made in addressing systemic inequities. Goldman's decision, and the broader corporate shift, may signal a return to pre-2020 norms, but it also raises questions about the future of diversity initiatives in an increasingly polarized political climate. As Trump's administration continues to shape corporate behavior, the balance between economic policy and social responsibility remains a contentious issue for businesses and regulators alike.