Standing firm for inclusion

President Trump’s second term in the White House started with a flurry of executive orders aimed at reshaping American life, including several that directly target diversity, equity and inclusion (DEI) initiatives.

The origins of DEI can be traced back to the 1960’s, during the civil rights movement and the introduction of employment laws and affirmative action in the United States. The Equal Employment Opportunity Commission was later established in the 1970’s to enforce federal laws against workplace discrimination. Today, most organisations integrate DEI through various initiatives and policies.

President Trump has recently put a spotlight on DEI by signing three executive orders. These orders aim to rescind the Biden administration’s DEI initiatives and require employment practices of the US federal government to reward hard work by individuals and exclude DEI considerations. Furthermore, all DEI jobs within agencies and departments of the US federal government are to be terminated. These actions attempt to undo longstanding anti-discrimination policies, pushing both government and private organisations to abandon efforts to promote fairness and address systemic discrimination.

Several high-profile companies in the United States have already scaled back their DEI initiatives. Meta has ended its DEI programme, which included hiring qualified people from underrepresented groups. This marks a significant change to its DEI efforts. Amazon has discontinued some DEI initiatives and is focusing on those with proven outcomes, reflecting a change of strategy. McDonald’s has scaled back its DEI initiatives, such as ending its commitment to diversity within its supply chain and retiring specific goals for achieving diversity at senior leadership levels.

In contrast, other large companies have reaffirmed their commitments to DEI. Costco remains dedicated to its DEI initiatives and 98% of shareholders voted to maintain them at the company’s annual meeting in January, despite pressure from an external party. Microsoft continues to emphasise the importance of DEI, with management driving positive changes within the company and its communities. Apple remains committed to creating a culture of belonging and maintains robust anti-discrimination policies. Companies like Apple are standing firm in their belief that DEI efforts are good for business and for society in general.

There will be mixed responses to Trump’s executive orders, with some companies doubling down on their DEI policies and initiatives, while others may bow to political pressures. As we navigate these changes, those steadfast in their commitment to diversity, equity and inclusion will continue to shape a better and more equitable future for all.

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This is an excerpt of an article published with the title ‘Crossroads’ in the latest edition of our flagship publication for clients only, News & Views. Craigs Investment Partners clients can view News & Views, including the full version of this article by logging in to the client portal.

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