UK Businesses Reassess Diversity Policies Amid Trump's Criticism of 'Woke' Agenda
Over half of the UK's largest companies are reviewing or abandoning their diversity, equity, and inclusion (DEI) initiatives due to criticism from the US government, according to a new study. The research, conducted by law firm Freeths, found that 28% of organisations have made significant changes to their DEI policies in response to the Trump administration's pushback against what is often referred to as the "woke" agenda.
The shift comes as some American companies, including tech giants like Amazon and Google, have abandoned similar initiatives amid concerns about increased costs and regulatory hurdles. The UK, however, has a different regulatory landscape, with protections afforded by the Equality Act limiting the ability for rollback.
While some businesses in the UK are taking steps to reassess their DEI policies, others are adopting a more cautious approach. A significant majority (83%) of corporate legal leaders from various sectors believe that profit considerations often take precedence over ethical concerns in business decision-making. This perception is reinforced by findings that 22% of respondents said they encounter conflicts between profit and ethics "very regularly".
The research also highlights the impact of external influences on company policies. Following Trump's criticism, some UK businesses have taken steps to distance themselves from what they perceive as an overly politicised agenda. For example, BT reportedly dropped DEI initiatives from its bonus scheme for middle managers.
Not everyone is convinced that a more balanced approach is necessary. Helena Morrissey, chair of the Diversity Project, argues that ethics and profits are not mutually exclusive. "Ethics is all about doing the right thing," she said. "I don't really see how it's ethics or profits β or how ethics are woke β that doesn't make any sense to me."
The study does offer some positive news, however. The proposed equality (race and disability) bill, which would compel employers with more than 250 staff to report on ethnicity and disability pay gaps, is seen as a step in the right direction.
As the debate around DEI policies continues, it remains to be seen how UK businesses will navigate the complexities of this issue. One thing is certain, however: the impact of external criticism, particularly from the US government, cannot be ignored.
Over half of the UK's largest companies are reviewing or abandoning their diversity, equity, and inclusion (DEI) initiatives due to criticism from the US government, according to a new study. The research, conducted by law firm Freeths, found that 28% of organisations have made significant changes to their DEI policies in response to the Trump administration's pushback against what is often referred to as the "woke" agenda.
The shift comes as some American companies, including tech giants like Amazon and Google, have abandoned similar initiatives amid concerns about increased costs and regulatory hurdles. The UK, however, has a different regulatory landscape, with protections afforded by the Equality Act limiting the ability for rollback.
While some businesses in the UK are taking steps to reassess their DEI policies, others are adopting a more cautious approach. A significant majority (83%) of corporate legal leaders from various sectors believe that profit considerations often take precedence over ethical concerns in business decision-making. This perception is reinforced by findings that 22% of respondents said they encounter conflicts between profit and ethics "very regularly".
The research also highlights the impact of external influences on company policies. Following Trump's criticism, some UK businesses have taken steps to distance themselves from what they perceive as an overly politicised agenda. For example, BT reportedly dropped DEI initiatives from its bonus scheme for middle managers.
Not everyone is convinced that a more balanced approach is necessary. Helena Morrissey, chair of the Diversity Project, argues that ethics and profits are not mutually exclusive. "Ethics is all about doing the right thing," she said. "I don't really see how it's ethics or profits β or how ethics are woke β that doesn't make any sense to me."
The study does offer some positive news, however. The proposed equality (race and disability) bill, which would compel employers with more than 250 staff to report on ethnicity and disability pay gaps, is seen as a step in the right direction.
As the debate around DEI policies continues, it remains to be seen how UK businesses will navigate the complexities of this issue. One thing is certain, however: the impact of external criticism, particularly from the US government, cannot be ignored.