Study Shows Few Companies Have Altered DEI Policies Despite Political Pressure – Diversity, Equity & Inclusion
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Littler, a law firm focusing on labor, recently published a study showing that only about eight percent of leading American companies have or intend to alter their diversity, equity, and inclusion (DEI) policies.
United States
Corporate/Commercial Law
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Littler, a law firm focusing on labor, recently published a
study showing that only about eight percent of leading American
companies have or intend to alter their diversity, equity, and
inclusion (DEI) policies. The Littler study involved about 350
C-suite executives. Despite a few high-profile defections of major
companies from DEI, most companies have been slow to consider any
meaningful reform.
The study shows that even in light of recent White House
executive orders, almost half of respondents indicated that they
are not considering changes to their DEI policies. Sixty percent of
respondents stated that they are awaiting details of enforcement
mechanisms from the Trump administration before altering any DEI
policies.
Nonetheless, over half of the respondents indicate that they are
concerned about the risk of DEI-related lawsuits, government
enforcement tactics, and shareholder proposals due to the current
administration’s stance on DEI. These worries are more
prevalent among federal contractors than other private companies.
Over 50% of the executives surveyed expect that they would moderate
their DEI commitments over the next year due to the Trump
administration’s stance on DEI.
Littler’s study illustrates the conflicting pressures at
play in this debate. The federal government has taken the position
that DEI policies are improper, if not illegal. On the other hand,
many companies view their DEI policies as crucial to their
recruiting, hiring, and retention efforts. To that end, companies
are trying to keep the federal government and their employees happy
by seeking a middle ground, such as removing or changing
DEI-related language on their websites, proxy statements, and other
company communications.
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