ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

DEI, but shy: Half of U.S. companies won’t cut programs, but won’t talk much about them either

DEI, but shy: Half of U.S. companies won't cut programs, but won't talk much about them either

President Trump has made dismantling diversity, equity and inclusion policies a priority for his second administration and many high-profile companies have announced pullbacks in their DEI programs.

But a survey out this week shows a decided split among U.S. corporations as to their DEI intentions: 49% surveyed after Trumps inauguration Jan. 20 said they are not considering new or further DEI rollbacks, while only 8% say they are “seriously” considering changes.

Sixty percent of executives surveyed say they are waiting for further details on the new administration’s priorities—including enforcement mechanisms—before making any modifications, according to the survey from Littler Mendelson P.C., one of the largest global employment and labor law practice devoted exclusively to representing management with offices in 28 countries.

In fact, Littler’s pre-inauguration survey found that the majority of organizations (76%) maintained or even increased their DEI commitments and activity levels over the past year.

“This new paradigm in Washington, D.C., presents business leaders with the formidable challenge of balancing the shifting political landscape—and pressure from vocal inclusion, equity and diversity critics—with employee expectations and existing inclusion, equity and diversity commitments,” an executive summary of the survey results posted on the law firm’s website says.

While many companies do not appear to be abandoning their DEI programs overnight, they are very aware of the threats. Approximately half  of survey respondents (55%) are more worried post-inauguration about the risk of DEI-related lawsuits, government enforcement actions and shareholder proposals. Fears are even more widespread among federal contractors and public companies that are highly visible targets for regulators.

Even if their own companies have no plans to do so, 53% of executives surveyed post-inauguration say that anti-DEI policies and/or rhetoric under the Trump administration will likely lead organizations to decrease their DEI commitments over the next year—up from 38% who said the same pre-inauguration.

Littler surveyed nearly 350 C-suite executives from across the U.S., both before the inauguration and after, to gauge how businesses have adapted their programs since its first IE&D C-Suite Survey Report published in January 2024. The respondents represented a diverse range of industries and company sizes, including CEOs, general counsels, chief legal officers and chief diversity officers.

The main counterbalance to Trump’s rhetoric is coming from company employees themselves. Approximately three quarters of survey respondents said that employee expectations for ongoing DEI commitments played a role in their company policies, “suggesting that DEI remains an important talent retention and recruitment strategy.”

“In this climate, many organizations are avoiding what may be perceived as unnecessary risks and focusing more on safer measures like affinity groups that still signal a commitment to inclusion and belonging in the workplace,” the executive summary says.

But companies are not going to be trumpeting these programs: Among the 51% of executives from the post-inauguration survey who report that their organizations are considering rollbacks of DEI programs, the largest percentage (61%) are focused on weighing whether to remove or reduce DEI-related language from their websites, proxy statements and/or outward-facing communications.

Read more: Apple and Costco are resisting the anti-DEI movement

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.