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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