App Review Pros reported on April 13 that, according to Reuters, IBM has agreed to pay $17 million (approximately 116 million RMB at the current exchange rate) to settle a U.S. government investigation into the company’s diversity, fairness, and inclusion (DEI) practices. During President Donald Trump’s second term, his administration cracked down on such practices.
This settlement is the first resolution reached since the U.S. Department of Justice established the Civil Rights Fraud Initiative last year to combat DEI (Discrimination Against Individuals) policies using civil fraud laws.
Trump targeted DEI practices in various public and private organizations, from government agencies to private universities. Civil rights advocates argue that these practices help address long-standing inequalities faced by marginalized groups such as women and minorities.
In the settlement agreement between the Department of Justice and IBM, the U.S. government accused IBM of practices including using “diversity adjustment factors” and linking bonuses and compensation to achieving demographic targets.
The settlement also states that IBM has terminated or modified several programs and policies, but the company denies any illegal activity.
The agreement states: “This agreement does not constitute an admission by IBM of legal responsibility, nor does it constitute an admission by the U.S. government that its allegations are unfounded.”
The White House characterizes DEI as “anti-meritocracy” and discriminates against groups such as whites and men. Trump has signed an executive order requiring federal contractors and subcontractors to abolish DEI-related practices. Following Trump’s order, many American companies scaled back or modified their diversity policies.
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