For Immediate Release: June 12, 2025

Contact: Alyssa McMurtry, amcmurtry@raben.co, (248) 840-3597

National Organizations Applaud Bold Action in California on Verizon/Frontier Merger for Abandonment of DEI Programs

California's Public Utility Commission is First Regulatory Agency Calling into Question Verizon's Ability to Serve Community; Could Create Issues with Merger 

Washington, D.C. - On May 29th, the California Public Utilities Commission (CPUC) issued a scoping memo and ruling that the Verizon/Frontier merger could be subject 12 to state regulations and specifically called into question whether Verizon was still able to serve California's communities after its retreat from diversity, equity and inclusion programs last month. The ruling, and scoping memo, is the first time a government agency is specifically calling into question whether a major corporation is still in compliance with regulations after the abandonment of diversity, equity and inclusion programs and could have severe implications on Verizon's ability to continue operating in California.

Companies have been under attack since 2023 regarding their diversity, equity and inclusion programs. Despite mountains of evidence revealing the benefits of these programs, anti-DEI activists and now this administration are wrongfully boxing in these initiatives as a partisan ploy rather than a universal good. In response, companies like Verizon are choosing to placate the Trump administration and play politics in order to push through their $9.6 billion acquisition of Frontier Communications.

Several national organizations issued statements of support for the CPUC's action today, and signaled that Verizon would continue to face both regulatory action as well as investor and consumer scrutiny for placing the company in legal jeopardy for these moves. The lack of DEI programs and policies inside of the company shirks their fiduciary responsibilities to shareholders and increasingly puts the company at risk of being unable to operate in states, as well as in Europe, key markets they need to compete in for revenues and customers. Major organizations expressed hope that other state agencies and jurisdictions would begin scrutinizing corporate retreats from diversity and equity protections as companies seek to play politics with these programs and curry favor with the Trump administration.

Paul Goodman, Legal Counsel at the Center for Accessible Technology, whose work help to move the CPUC scoping memo and ruling:

“DEI programs are not a bargaining chip to be bartered away in exchange for merger approval. They are critical tools that help ensure equity for environmental and social justice communities and safeguard against continued historical discrimination. Verizon’s elimination of its DEI plans will cause serious harm to the communities that Verizon serves. On behalf of our constituency of customers with disabilities and medical needs, Center for Accessible Technology deeply appreciates the Commission’s ongoing commitment to ensuring that communications providers that do business in California do so in a manner that supports diversity, equity, and inclusion.”

Janai Nelson, President and Director-Counsel of the Legal Defense Fund (LDF):

“In order for companies to truly serve the public, their policies and practices must be consistent with the grounding principles of our multi-racial democracy: diversity, equity, inclusion, and accessibility. Verizon’s capitulation to the Trump administration’s anti-civil rights agenda clearly brings its ability to protect its employees and consumers into question. We commend the California Public Utilities Commission for its leadership in taking the necessary steps to protect the people of California, and we are hopeful other jurisdictions will take note and ensure the companies operating in their communities put people over politics.”

Portia Allen-Kyle, Interim Executive Director of Color of Change:

“As attacks on equity accelerate nationwide, the neo segregationist agenda is counting on silence and complicity. Across the country, State Attorneys General, regulatory commissions, and elected officials all have a duty to be courageous and hold corporations accountable. We applaud the California Public Utilities Commission for stepping up for consumers and asking the right questions about Verizon’s capacity to serve the public after walking back its diversity, equity, and inclusion commitments. When companies walk away from diversity, equity and inclusion, they’re not just making a business decision—they’re signaling that access, fairness, and representation are negotiable.”

Lisa Gilbert, Co-President, Public Citizen:

“The important letter California Public Utilities Commission sent to Verizon last week is a critical development in the fight against Trump's war against diversity programs. For the first time we're aware of, a state is looking into whether the calculated political moves made by Verizon to end their DEI programs means that they are now out of compliance with both federal and state laws requiring workplace protections against discrimination. Verizon has a fiduciary responsibility to its investors to ensure that it is following the law. Any noncompliance could easily result in significant financial losses due to lawsuits and the inability to generate revenue in certain markets or bid on state and federal contracts.”

Abdi Soltani, Executive Director of ACLU of Northern California:

“Workplace protections against discrimination are critical to ensuring that everyone has an equal opportunity to participate in our economy. When companies give in to political pressures and fall out of compliance with federal and state law, this creates serious concerns. The California Public Utilities Commission’s announcement that it will review whether Verizon’s retreat from DEI undermines its ability to serve the public reflects the important role regulatory bodies play in ensuring companies operate in a just way.”

Andy Behar, Executive Director of As You Sow:

“The BIG story of proxy season 2025 is that there have been 15 ballots so far in which over 98% of shareholders voted to send a strong message to management to keep current DEI program in place. The total share value voted is over $4.5 trillion at Disney, Costco, Visa, Apple, Deere, Boeing, Goldman Sachs, Levi’s, AMEX, Coca-Cola, Berkshire Hathaway, Bristol Myers, Gilead, McDonald’s, and Merck. Shareholders are crystal clear that we want boards and executives to make business decisions based on business data and not politics.”

National Action Network, Western Regional Office, In partnership with California State Chapters:

“We commend the California Public Utilities Commission for upholding equity standards, including General Order 156, which protects supplier diversity and economic inclusion. As equity efforts face growing resistance nationwide, it is critical that states maintain the authority to hold companies accountable, especially those serving diverse communities. These protections are not symbolic; they safeguard public trust and opportunity. Through our Western Regional Office and California chapters, the National Action Network affirms that equity must remain a precondition for doing business in this state. We urge regulators to increase transparency and accountability. Equity is not a box to check it is enforceable, measurable, and vital to the public interest.”

Eliza Leighton, Executive Director of Deliver the American Dream, a member organization of the American Pride Rises Network:

“The California Public Utilities Commission took a vital step to protect consumers as well as Verizon employees by starting a process of looking into Verizon's ability to comply with both federal and state laws last week. Their retreat on their own DEI programs set up specifically to ensure compliance with the law, and protect their employees from discrimination casts doubt on their ability to operate in a way that is acceptable to California, and it's likely that other states might have similar cause of action against Verizon as well. We are hopeful that this is the first of many jurisdictions who will scrutinize Verizon, as well as other companies ending DEI programs, to ensure that they are fully compliant with local and federal laws."

Alphonso David, President and CEO of Global Black Economic Forum:

“California is standing firm against attacks on diversity, equity, and inclusion—and against attacks on our constitutional freedoms. In this moment, we all must defend freedom and opportunity, not just as moral imperatives but as economic necessities. Economic opportunity doesn’t happen in a vacuum; it thrives when we remain steadfast in everyone having access to a pathway to shared prosperity.”

Alex Aronson, Executive Director of Court Accountability:

"The Trump administration’s relentless attacks against certain Americans' rights and freedoms are unpopular, unjust, and unlawful. We applaud the California Public Utilities Commission for taking action to stand up for workers and consumers and stop the administration’s attempts to bully providers of critical services into doing Trump's bidding. We hope this encourages more state entities to investigate potential violations of law by corporations that are caving to Trump at the expense of employees' and customers' rights."

Jason Solomon, Director of the National Institute for Workers’ Rights:

“Kudos to the California Public Utilities Commission for asking Verizon tough questions about whether the company is complying with its obligation to promote equal opportunity in the workplace. Verizon’s leadership has a fiduciary responsibility to its shareholders to ensure that it is complying with anti-discrimination laws, and the company’s recent announcement raises serious questions about whether it is adequately fulfilling that responsibility.”

Josh Zinner, CEO of the Interfaith Center for Corporate Responsibility:

“As long-term investors, we know that companies with policies and practices promoting diversity, equity, inclusion, and accessibility stand ready to safeguard human and civil rights and to reduce the risk of discrimination against employees, customers, or other stakeholders. A positive corporate stand on DEIA engenders loyalty and reduces turnover, positioning companies for success, but most importantly, it is the ethical thing to do. Verizon’s recent retreat from critical DEIA programs out of a fear of reprisal from the Trump administration is deeply troubling, as it endangers workplace protections meant to prevent discriminatory practices. We applaud the California Public Utilities Commission for asking Verizon critical questions about its retreat on DEIA and how this might impact its operations and ability to serve the public.”

Chioma Chukwu, Executive Director of American Oversight:

“The California Public Utilities Commission’s decision to scrutinize Verizon is an important and refreshing act of government accountability. When corporations roll back DEI initiatives that were created to help them comply with anti-discrimination laws, regulators have a duty to step in. This isn’t just about internal corporate policy — it’s about whether companies that do business with the public are following the law. Verizon’s about-face casts doubt on its commitment to lawful, equitable operations, and we urge other jurisdictions to follow California’s lead. Strong oversight is essential to ensure that corporations aren’t using political pressure as cover to evade their legal responsibilities.”

Julianne Zimmerman, Co-CEO of Adasina Social Capital:

"We commend the California Public Utilities Commission (“CPUC”) for taking this critical step to hold Verizon accountable for its retreat from diversity, equity, and inclusion programs, and we proudly join others in supporting the CPUC's action. As impact investors, we understand that DEI initiatives are essential business practices that drive innovation, reduce risk, and create long-term value. Notably, Verizon has been absent from our investment portfolio for over four years due to early indicators of material operational and reputational risk that we identified through our screening processes. Verizon's recent abandonment of DEI programs raises serious questions about the company's commitment to legal compliance and long-term value creation. The CPUC's inquiry into whether this retreat undermines Verizon's capacity to serve California's diverse communities represents exactly the regulatory oversight we need nationwide. We encourage other state regulators and attorneys general to examine whether companies abandoning DEI programs remain capable of serving their communities effectively and in compliance with anti-discrimination laws. When corporations prioritize political posturing over proven business practices, regulatory accountability becomes essential to protect all stakeholders."

Lisa Graves, Founder and Director of True North Research:

"Verizon’s decision to end its popular DEI initiatives in order to kneel to the Trump administration betrays its commitments, its customers, and its workers. We applaud the California Public Utilities Commission for working to protect consumers by standing up to Verizon’s craven willingness to cave in to Trump’s unreasonable hostility to diversity and equity initiatives that have helped counter discrimination and exclusion that weaken our society and its commitment to equal protection of the law.

Marcela Pinilla, Director of Sustainable Investing at Zevin Asset Management

"The California Public Utilities Commission took a bold step to protect consumers and employees by starting a process of evaluating Verizon's compliance with both federal and state laws last week. Verizon’s retreat from its diversity, equity, and inclusion programs—designed to uphold legal protections and prevent discrimination—casts doubt on the board and management’s fitness to operate in California. In light of the company’s recent undertaking of a Racial Equity Audit, it’s deeply disappointing to see such an unabashed dismantling of their efforts. We are hopeful that this is the first of many jurisdictions who will scrutinize companies ending DEI programs. If Verizon can't operate an inclusive workplace in California, in Europe and in other jurisdictions that it must compete in, their market share may recede and we may see harm to Verizon’s reputation among current and prospective employees, shrinking their talent pool.”

Jeff Cohen, Co-Founder, RootsAction:

"It's about time that a state regulatory agency started questioning whether corporations that are in full retreat on issues of inclusion, like Verizon, can serve our increasingly diverse public. This is a good first step from the California Public Untilities Commission."

Glenn Harris, President, Race Forward

“Race Forward applauds The California Public Utilities Commission (CPUC) for taking a strong position to hold corporations accountable - both to their consumers and to federal and state law - when they back away from their stated commitments to diversity, equity, and inclusion efforts. Our Government Alliance on Race and Equity (GARE) works with local jurisdictions across the country to normalize and operationalize racial equity into their practice and policies and it is encouraging to see state agencies, such as CPUC, acknowledging equity as fundamental to its mission. In this moment where our federal government is in active opposition to the promotion of diversity, equity, and inclusion, we are hopeful that this action by the CPUC signals a growing movement among jurisdictions to ensure that corporations are fully compliant with local and federal laws to promote diversity and inclusion and advance equity through their business practice.”