An overwhelming majority of UK business leaders have said they will stand by their DEI policies and programmes, despite pressure from the US following a major change in federal policy under Donald Trump.

A survey by the Institute of Directors finds that 71% of corporate chiefs have no plans to alter their organisational approaches to equity, diversity and inclusion, or ED&I, in the way that similar programmes have been cut in the US since the Trump presidency began.

Alex Hall-Chen, principal employment policy adviser at the IoD, says the results suggest that, while the US policy turnaround may have some “spillover” into UK business, the “vast majority” will not react.

“Particularly for employers with no US presence, the prevailing view among British businesses is that decisions made by the US government and US companies will have little to no bearing on investment in their own ED&I programmes.”

‘A difficult line’

There is, however, a warning that employers with global operations will “undoubtedly have to tread a difficult line between avoiding divergence with US counterparts and meeting the expectations of UK stakeholders.”

Donald Trump banned federal agencies from using DEI programmes in January with Executive Order 13985. Soon after, US embassies in France, Belgium, Italy and Spain sent a notice to local companies supplying the US government asking them to provide assurance that they do not run DEI programmes in breach of the executive order.

So far there has been no sign of similar letters going out to UK companies. However, according to reports in the press, the White House has written to UK universities that receive US funding to prove none of the funding was spent on DEI.

The Institute of Directors was one of the first UK bodies to support ED&I policies in the face of White House decision-making.

Roger Barker, policy director at the institute, told Board Agenda: “Keep calm and carry on. A constructive approach to inclusion and diversity makes sense from a business perspective, despite political headwinds.”

He added: “For most UK companies, the trend toward inclusion and diversity in business practices is a permanent shift in mindset and behaviour. It is less susceptible to fluctuations in political fashion compared with the US.”

‘Cautionary tale’

Fiona Hathorn, chief executive of the networking organisation Women on Boards, said at the time: “Rather than shutting out the noise from the US, UK companies should take it as a cautionary tale. Reactionary moves often result in lost progress and reduced trust.”

Others have warned that US policy can affect businesses in the UK. ED&I expert Doyin Atewologun, writes for Board Agenda: “Board members as individuals and as a collective must resists making hasty, reactionary decisions in the current wave of ‘anti-wokeness’.

“The work to build fair, inclusive businesses where all talent thrives to retain competitive advantage is too important and too complex for superficial responses.”

Some state governments in the US are fighting back against the Trump dictates on DEI. But the White House appears to have the upper hand for now.

The big issue is whether the policy will eventually take hold elsewhere. For now, it seems the UK is holding out.