Some companies double down on DEI as others make cuts

What you already know: The Trump administration’s attacks on diversity, equity and inclusion practices have left private sector businesses cautious and confused. Several major companies have followed the lead of the federal government’s retraction of DEI policies, including the likes of Goldman Sachs, Deloitte and Google.

The impact: While there aren’t any executive orders forcing private businesses to abandon DEI, companies that seek government contracts could lose work if the Trump administration decides to enforce requirements that contractors “not operate any programs promoting DEI,” an executive order that was recently blocked by a federal judge. These outward attacks on DEI have “emboldened a lot of companies” to follow suit, said Maria DeLorenzis Reyes, executive and leadership coach and founder of consultancy Training Innovations. Some firms may see the administration’s attacks on DEI as a way to drop efforts that were done on a “performative basis” without fully understanding their meaning or importance, said Reyes. Others may be rolling back their efforts out of fear: “There's a lot of companies that are falling in line because they are afraid of the pressure and the backlash.”

What it means: But following the lead of the administration’s executive orders may have its own adverse effects, said Reyes. For one, a diverse staff “promotes better operation,” she said. “It promotes diverse ideas and thoughts and ways of doing things.” Abandonment of these practices will likely also impact the bottom line, with many consumers boycotting the major companies and retailers that have echoed the administration’s sentiments.

What happens now: Businesses that do want to continue their DEI practices should continue to do just that, said Reyes. Companies like Apple, Costco and Microsoft have taken this approach. Despite the outside pressure, it’s important that enterprises “operate from a place of what is right without being told that you need to,” Reyes said. “That means not being biased, making sure that you're equitable, making sure that you're not discriminating – all of those things going back to the core principles of your company.”

—Story by contributing writer Nat Rubio-Licht