U.S. federal agency The Equal Employment Opportunity Commission (EEOC) announced that has filed a subpoena in federal court against Nike, seeking information as part of an investigation into allegations that the company discriminated against white workers through its Diversity, Equity, and Inclusion (DEI) programs.
According to the court filing, the agency is investigating “potential unlawful employment practices” by Nike, allegedly violating prohibitions against employment discrimination in the Civil Rights Act (Title VII), for “disparate treatment against White employees,” in areas including hiring, layoffs, compensation, and access to career development programs, among others.
The order noted that the EEOC has issued several requests related to the investigation, but that Nike “failed to fully provide the information sought.”
EEOC Chair Andrea Lucas said:
“When there are compelling indications, including corporate admissions in extensive public materials, that an employer’s Diversity, Equity, and Inclusion-related programs may violate federal prohibitions against race discrimination or other forms of unlawful discrimination, the EEOC will take all necessary steps—including subpoena enforcement actions—to ensure the opportunity to fully and comprehensively investigate.”
The investigation marks the latest in a series of actions by the Trump administration over the past year targeting programs and firms following policies related to DEI, starting with an Executive Order signed by Trump after taking office eliminating DEI preferencing in federal contracting, and requiring contractors to affirm that they “will not engage in illegal discrimination, including illegal DEI.” In January, U.S. Secretary of War Pete Hegseth announced plans to review more than 4,300 companies participating in a federal contracting program aimed at assisting socially and economically disadvantaged small business owners, pledging to “sledgehammer” what he called “the oldest DEI program in the federal government.”
In a statement announcing the court action, Lucas highlighted the administration’s focus on DEI programs as a driving factor behind the agencies move, saying that “thanks to President Trump’s commitment to enforcing our nation’s civil rights laws, the EEOC has renewed its focus on evenhanded enforcement of Title VII.”
The EEOC said that it is seeking information going back as far as 2018, on topics including criteria used in selecting employees for layoffs, Nike’s tracking and use of worker race and ethnicity data, and on a series of alleged “race restricted” mentoring, leadership, or career development opportunity program provided by the company.
In a statement provided to ESG Today, Nike called the EEOC’s action “surprising and unusual,” adding that the company is “committed to fair and lawful employment practices and follow all applicable laws, including those that prohibit discrimination.”
Nike added:
“We believe our programs and practices are consistent with those obligations and take these matters seriously. We will continue our attempt to cooperate with the EEOC and will respond to the petition.”
Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.
