Will the rolling back of DE&I initiatives in the US impact organisations in the UK?

DE&I initiatives have been a key focus for employers for many years. It is, therefore, notable that several corporations seem to now be rolling back on such commitments.  We explore some reasons for this and the wider impact it may have on UK businesses.

Many organisations have committed to Diversity, Equity and Inclusion (DE&I) policies that promote working environments where all employees are given equal opportunities and feel valued. This is often achieved through focusing on representation and participation of individuals of varying ages, races, genders, abilities and sexual orientations across all levels within an organisation. DE&I initiatives seek to address the historic and systemic barriers that impede equal access to opportunities and resources. The aim of such policies is to create an environment that is inclusive where individuals feel valued and supported.

However, more recently, we have started to see a roll back in DE&I initiatives in the US. There are many factors which have contributed to this, including the economic pressures companies are facing and the shifting of their priorities in response. However, there can be no doubt that US President Donald Trump’s actions have significantly heightened this decline.

DE&I policies in the US

Shortly after his inauguration as the US President, Trump issued executive orders changing the current landscape of DE&I within the federal government and these policy decisions have sparked varied reactions from major corporations in the US. Indeed, hundreds of US companies have removed references to DE&I from their annual reports and several have scrapped diversity programmes.

Meta (Facebook, Instagram and WhatsApp) is perhaps the most immediate example. The corporation has pulled back from traditional DE&I initiatives citing both the changing landscape in the US and the view that programmes which advantage one group over another are unlawful. This, coupled with changing policies to allow more transphobic content to appear on Meta platforms and scrapping fact checking on posts under the guise of free speech, raises the question of just how committed Meta remains to safeguarding and championing disadvantaged groups.

Following Trump’s actions, other major corporations have also rolled back on their diversity programmes, although this is by no means universal. Costco, for instance, remains a notable example. The shareholders of the company overwhelmingly voted against a proposal urging the wholesaler to evaluate risks posed by its DE&I measures. The board of directors advised the shareholders to vote against it stating “our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information to our shareholders.”  98% of shareholders voted against the policy. The directors’ message to shareholders details how having diverse employees and suppliers has, in their view, fostered “creativity and innovation in the merchandise and services that we offer” and led to greater customer satisfaction among the Costco Members.

Microsoft has also doubled down on its commitment to DE&I with Chief Diversity Officer Lindsay-Rae McIntyre writing, "We continue to believe it’s the business of Microsoft to be diverse and inclusive so we can build products, services, and a workforce that empowers the world."

Effect on UK businesses

For the time being at least, it seems that UK employers are not following their US counterparts.

According to a survey of 140 UK employers conducted by Occupational Health Assessment at the end of January 2025, whilst 69% of those surveyed expect UK policies to be impacted by the current US actions, only 6% of those believed these would be major changes. Results from an InterLaw Diversity Forum survey show that within the UK legal sector 30% of respondents reported feeling no change or impact to their organisation’s DE&I commitments or activity.

Interestingly, the legal position within the UK is very different to that in the US. For example, the Equality Act 2010 sets out clear legal requirements on employers to avoid discriminatory practices and to take all reasonable steps to prevent discrimination from taking place. Notably, however, these do not include the kind of affirmative action previously seen in the US; in fact positive discrimination is unlawful in the UK.

In addition, the recent Worker Protection (Amendment of Equality Act 2010) Act 2023, places a duty on employers to take reasonable steps to prevent sexual harassment within the workplace. Such steps include having clear policies and procedures on acceptable behaviours and regular training of staff.

A roll back on policies or training, alongside other DE&I initiatives, in the UK would make it harder for employers to avoid and defend discrimination claims, not to mention the impact on the workforce productivity and innovation more generally. There is strong evidence to support the message that a diverse and inclusive workforce aids innovation and boosts financial performance.

That said, it is always good practice for employers to keep policies and procedures under review and to update them as needed. The current landscape does provide UK businesses with the opportunity to consider if their DE&I initiatives are effective, and if they need to be updated to bring them in line with modern workplaces.

What is clear is that employees are looking for reassurance from their employers and clear communication of the stance which they are taking in light of the current DE&I landscapes. Silence on this front is likely to lead to unease, uncertainty and anxiety in the workplace.