According to Bloomberg, corporate America is bracing for potential significant changes to diversity, equity, and inclusion (DEI) initiatives under a second Trump administration.
In January 2021, President Joe Biden repealed an executive order by former President Donald Trump that had restricted company DEI initiatives. Three-and-a-half years later, Trump and Vice President Kamala Harris are neck-and-neck in polls for the upcoming presidential election.
The uncertainty has led businesses to reassess or eliminate certain DEI initiatives in anticipation of potential political and legal challenges. Businesses are preparing for a possible rollback of DEI programs while shoring up their efforts under the current supportive policies.
A Harris win in November would likely mean a continuation of supportive policies for DEI. However, conservative groups and some prominent business figures have criticized DEI policies, especially following the Supreme Court’s recent ban on affirmative action in college admissions.
A second Trump administration is expected to reinstate the executive order prohibiting bias training for government contractors, echoing previous criticisms from Trump’s Labor Department towards companies like Microsoft and Wells Fargo for pledging to increase Black executives.
Trump has pledged to reverse actions taken under Biden’s equity agenda, further heightening concerns among DEI advocates. The Bloomberg News/Morning Consult poll reveals a tight race, with 48% of voters backing Harris and 47% supporting Trump in battleground states. As a result, companies have become more cautious about promoting DEI programs publicly, removing terms like “anti-racist” and “unconscious bias” from their filings.
Lauren Hartz commented, “Our clients understand what’s at stake for DEI in the upcoming election.” Many who fear a rollback of current DEI efforts share this sentiment.
Vasu Reddy has noted, “Trump has made no secret of his vendetta against diversity, equity, and inclusion.” Reddy suggests that the aim is to intimidate businesses into avoiding these topics entirely, particularly those reliant on federal funding. Additionally, the Trump administration is expected to use the Civil Rights Act of 1964 and other legal levers to influence corporate policy against DEI.
At the Republican National Convention, speakers criticized DEI, describing it as “division, exclusion, and indoctrination.” Conservative activists are pushing for further amendments to the Civil Rights Act to remove terms related to DEI and gender equality.
Despite these challenges, a Washington Post-Ipsos poll found that 61% of adults support DEI programs in the workplace, with higher support for specific initiatives. Younger employees, particularly those aged 18-29, show greater support for DEI compared to older employees.
Robby Starbuck remarked, “You’re going to see movement from day one of a Trump administration, maybe even literally before day one. Let’s make America sane again, let’s get away from all this crazy stuff, find unifying things.” This perspective underscores the anticipated swift actions against DEI initiatives if Trump wins.
Conversely, Alison Taylor argued, “To say we can just cancel ESG and DEI, and that phase is over, is deranged.” Taylor’s statement highlights the ongoing debate about the relevance and necessity of DEI and environmental, social, and governance (ESG) initiatives in the corporate world.
As the election approaches, the future of DEI initiatives hangs in the balance. Businesses are taking a cautious approach, wary of the potential for significant policy shifts that could impact their DEI strategies. The outcome of the election will determine whether these programs continue to receive support or face increased scrutiny and potential rollback.
