Minority ethnic board directors in companies with exposure to the US may be suppressing their contributions to decision-making, as a result of the anti-DEI policymaking by the White House, according to a leading expert.

Doyin Atewologun, founder and CEO of the Delta Alpha Psi consultancy and a member of the Parker Review steering committee, says UK companies and individuals on boards have had to adjust to the US reversal on diversity and inclusion.

“What’s happening across the Pond is having an impact on minority ethnic board members and I don’t know the extent to which chairs are maybe cognisant of this,” she says.

Atewologun was speaking for the Board Agenda podcast Governance Watch, reflecting on the state of diversity and inclusion in the UK after significant change in one of its main trading partners.

‘Hyper visibility’

Atewologun says some board directors may have developed a sense of “hyper visibility” since the US changes. “It’s something chairs and other board members should pay attention to.”

She adds: “It may be that well-meaning chairs may not want to raise it and it might be worth, in a one-to-one, just checking with minority ethnic colleagues or with senior women on your boards.”

Atewologun says diversity and inclusion in UK boardrooms has made “real progress” but it “remains uneven” and there are still improvements to be made.

“We need to do much more with regard to who holds power in the room and how decisions are made.” She adds that while there is a focus on the good news of headline figures, “we need to do a lot more in terms of focusing on the pipeline to roles in the boardroom.”

It’s a year on from the US changes, delivered through an executive order that DEI policies should be cut from federal government departments. Since then, UK companies have reacted in one of three ways. Some have been “sundowning” DEI policies by removing them from websites and public documents, though they are continuing behind the scenes. Meanwhile, some companies have continued as before while others have used the opportunity to end diversity, equity and inclusion projects entirely.

“I would invite chairs and CEOs to pause and think through what their core values are and their raison d’être,” says Atewologun.

She recommends senior management be open with employees about why they are sticking with D&I projects. “For example, improving the quality of our decision-making, giving us more robust governance structures, ensuring that we have access to all of the talent that’s available in order for us to continue to lead this business in a successful way.”

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The podcast was produced in association with Nasdaq Governance Solutions.

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