Goldman Sachs, a prominent global financial institution, is stepping back from its previous advocacy for inclusivity and diversity, particularly in the selection of its board members. As reported by the Wall Street Journal, the bank, led by CEO David Solomon, plans to remove considerations of race, gender identity, ethnicity, and sexual orientation from its official criteria for board candidate selection. This decision is seen not just as a procedural change but as a political signal indicating that the era of 'woke capitalism' may be coming to an end.

Historically, Goldman Sachs’ governance committee selected board candidates based on a broad notion of diversity that involved four major factors, including professional experiences, viewpoints, military service, and other demographic data. Among these criteria, the inclusion of identity factors such as race and sexual orientation has been a significant aspect of their approach in recent years. The shift signifies a pivot towards a potentially more traditional business model, one that prioritizes merit over demographic characteristics.

This development occurs amidst growing debates about the efficacy and implications of corporate 'woke' practices. The decision may reflect a broader reevaluation within the corporate world regarding the balance between social responsibility and business operations, and it poses questions about how firms will navigate stakeholder expectations moving forward. As one of the financial industry's leaders makes this strategic shift, it could encourage other corporations to reconsider their own diversity initiatives and the influence of social activism on business strategy.