‘ONLY THE BEGINNING’: IBM’s Rejection of DEI Will Spark a ‘Corporate Realignment,’ Shareholder Says

IBM’s latest moves rejecting woke orthodoxy and the diversity, equity, and inclusion movement will spark a “corporate realignment” against DEI, one of its shareholders predicts.

The shareholders for International Business Machines Corporation—better known as IBM—will meet Tuesday, one day after the company announced a $150 billion investment in U.S. manufacturing. The Heritage Foundation, one of IBM’s shareholders, is urging the company to maintain its rejection of DEI ahead of the Tuesday meeting.

“DEI was never about diversity — it was about domination,” Andy Olivastro, chief advancement officer at Heritage, told The Daily Signal in a statement Monday. “The Right had to learn the corporate pressure points to undo the Left’s damage — and we did it faster than anyone thought possible. This is a watershed moment, and it’s only the beginning.”

“We watched as corporate America sold out merit for ideology,” Olivastro added. “We studied their pressure points. And when we moved, we moved fast. IBM’s reversal isn’t the end — it’s the beginning of a corporate realignment built on excellence, not activism.” 

Robby Starbuck, a visiting fellow at Heritage’s Capital Markets Initiative who has successfully pressured many companies to reject “woke” DEI policies, celebrated the manufacturing announcement. He had recently pressured IBM to reverse course on DEI, and the company did so.

“With their investment of $150 Billion in the U.S., IBM is putting America First,” Starbuck told The Daily Signal.

“When I worked with IBM to remove anti-American DEI policies, we made it clear that investing in America would set IBM up for continued success alongside merit-based policies,” he added. “Today they’re making that vision a reality and we can’t wait to see the next innovations IBM leads the world on, while utilizing the best minds that America has to offer!”

IBM Rejecting DEI

Under pressure from Starbuck, IBM changed its policies earlier this month, rejecting the DEI movement and withdrawing from the transgender activist Human Rights Campaign’s “Corporate Equality Index.”

The company adopted this statement regarding neutrality in its content:

IBM’s media-buying and content policies are audience-centric, aiming to reach all consumers authentically, and are viewpoint neutral with respect to political or religious status or views.

IBM CEO Arvind Krishna had allegedly said that executives would be held accountable for DEI goals, and that the company would “move forward by 1 [percent] on … underrepresented minorities.” Missouri Attorney General Andrew Bailey, a Republican, sued IBM over this policy, claiming it involves unlawful discrimination.

Critics say DEI promotes racial, sexual, and viewpoint discrimination by encouraging the promotion of racial minorities, women, and LGBTQ people, regardless of merit or capacity to perform a job.

The move comes after President Donald Trump signed executive orders stating that federal civil rights law—which bars discrimination on the basis of race, gender, religion, and other characteristics—forbids the sort of preferences the DEI movement champions.

HRC’s Corporate Equality Index rates companies based on their adherence to LGBTQ orthodoxy, from internal policies on gender pronouns to a brand’s promotion of LGBTQ causes. This transgender litmus test likely explains why Bud Light partnered with transgender activist Dylan Mulvaney and why Target sold transgender “tuck” swimsuits that make males appear female—moves that resulted in boycotts in 2023.

Starbuck has exposed DEI practices at major companies, pressuring them to reconsider. His activism has changed corporate policies at Tractor Supply, John Deere, Harley-Davidson, Lowe’s, Ford, Coors, Jack Daniels, Boeing, Toyota, Walmart, McDonald’s, and others.

IBM’s rejection of DEI came after The Heritage Foundation filed a proposal with the company asking for a report on these policies.

“IBM ought to be recruiting employees without regard to race, gender, religious beliefs, or political affiliation, and empowering its many managers/executives to make decisions regarding recruitment and promotion in the same nondiscriminatory manner,” the proposal read.

The IBM Meeting

IBM will host its annual stockholder meeting Tuesday. Heritage and Starbuck released a statement Monday praising the company for its reversal on DEI and urging the company to stand firm.

“Leaders at IBM have taken a critical step in restoring equality, transparency, and commitment to merit in the marketplace,” Olivastro, the Heritage advancement officer, said. “We’re grateful that the company listened to the voice of shareholders like us. The company now has a real opportunity to make good on this commitment and take the lead in setting the tone for the rest of corporate America.”

“IBM needs to make it clear, to shareholders, employees, and customers — that there is no area of its corporate policy in which immutable characteristics like race and gender are prioritized over merit. Full stop,” he added.

Starbuck urged the rest of corporate America to follow suit.

“IBM is again doing the right thing after facing pressure to get rid of this crazy ideology that has infected corporate America,” he said. “What this proves is that, together, we can eliminate DEI.”

“My message to all corporate executives at every company is to have the courage to get rid of DEI and save your companies,” Starbuck added. “We know what makes America great and it is not DEI.” 

The IBM Investment

IBM announced Monday that it will invest $150 billion in the U.S. over the next five years. The investment will include more than $30 billion to advance manufacturing of its mainframe and quantum computers in the U.S.

IBM touted its history in helping the U.S. achieve major data processing goals in its Monday press release.

“We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world’s most advanced computing and AI capabilities,” IBM CEO Krishna said.

The release noted that IBM data processing systems enabled the U.S. Social Security system, the Apollo Program that put a man on the moon, and have powered businesses in every industry. More than 70% of the world’s transactions by value run through IBM mainframes made in America, the company added.

IBM also touted its quantum computing network, stating that nearly 300 Fortune 500 companies, academic institutions, laboratories, and startups use it.

The announcement comes after Trump announced a series of tariffs to incentivize investment and manufacturing in the U.S.

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