While Trump is the president of only one country, the consequences of his decisions for organisations and individuals, may be felt worldwide.
Trump has only just begun his second term as president of the US and already he has brought into effect several controversial executive orders with the power to impact the world, not just his region of responsibility. Whether it is global politics, the elimination of AI safety measures or the almost too ironic row between leaders at DeepSeek and OpenAI, it has been a chaotic first few weeks for Trump, not least because of plans to fire federal diversity, equity and inclusion staff (DEI).
As of early January 2025, Trump placed all US governmental DEI staff on paid leave, with the ultimate intention of permanently dissolving their positions, in an effort to be rid of what he referred to as “dangerous, demeaning and immoral programmes”. Whilst on a surface level Trump’s executive orders only affect US-based government employees, on a wider scale, the potential for harm to global organisations is significant and here is why.
Fractured partnerships
While many companies have jumped on the bandwagon and begun dissolving their DEI programmes and laying off staff, for example Meta, Amazon, McDonald’s, Ford and Google, others such as Apple and Costco have stayed resolute against calls for them to reevaluate their DEI policies.
Organisational leaders may believe that a reduction in DEI engagement will free up resources and allow for the reallocation of funds, but there is every chance that it could cost companies the relationships and partners they have established over the years. Many organisations may still prioritise collaboration with groups that represent their own ideals, particularly outside of the US, in regions that are still moulding their DEI programmes.
If you are a multinational organisation, an innovative start-up looking to expand, an investor or external stakeholder, you may well reconsider aligning yourself with a US-based company if they no longer hold the same cultural, societal and operational values as you.
Content to move continents
Trump’s suggestion that anti-DEI measures will make hiring ‘colour blind’ and ‘merit-based’ is very likely to have the opposite effect and organisations may find that they are actually limiting the talent pool from which they can pull. Demoralised or concerned people of working age could find themselves in a position where it is preferable to work for internationally-based companies, rather than ones located in the US, leading to an exodus as well as an increase in organisational costs.
Those on a working visa, uncertain about their employment status over the next four years may have to travel elsewhere or return to their countries of origin, potentially leaving employers, who are trying to navigate new DEI regulations, with skills shortages.
A legal landmine
Workplace DEI measures serve a very obvious purpose in that they ensure that people from all walks of life are given equal access to opportunities for career growth, engagement and success. While they are not a legal requirement, often the issues that arise in a company in relation to a person with a protected status, can be prevented or managed by strong DEI programmes and policies.
Global organisations may find that their US-based offices are in a vulnerable position as they are pressured by stakeholders, consumers and local government officials to investigate, reduce or eliminate their DEI practices. If bias, unconscious or otherwise, takes root, as it so often does, corporations are going to find themselves open to accusations of discrimination, resulting in wasted resources and increased legal costs.
There has been significant pressure and strong arming from conservative organisations such as the National Center for Public Policy Research, which has accused companies, for example retailer Target, of misleading shareholders regarding the risks of its DEI programmes and already a lawsuit has been brought against the company. So for everyone involved, regardless of where you stand on the matter, legally it is going to be a precarious four years.
Trump’s war on DEI has the potential to create a globally tumultuous and complex landscape for businesses to navigate. While it is people and organisations in the US that will bear the brunt of the changes in policy, the effects will likely ripple throughout the rest of the world, impacting organisational operations, hiring efforts, international partnerships and how companies brand themselves.
For the companies that are committed to ensuring the fair and equitable treatment of all employees, now is the time to stay firm on the DEI policies that have given rise to diverse thinking, new opportunities and the cultivation of a modern workplace, designed with everyone in mind, not just the chosen few.
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