A new reality for Diversity, Equity & Inclusion

For years, Diversity, Equity & Inclusion (DEI) have been considered a vital part of modern corporate culture - aimed at ensuring equal participation in the labor market, regardless of gender, origin, disability, or sexual orientation. With Donald Trump’s return to the White House, however, not only has the political climate shifted—but so has the role and perception of DEI. The new U.S. administration aims to "end unlawful discrimination and restore merit-based opportunity".₁ From this perspective, current DEI policies are seen as a violation of civil rights and discriminatory against white people - especially white men.

This marks a reversal of protections dating back to 1965, which obligated federal employers and contractors to treat employees without discrimination. The DEI movement in the U.S. has deep roots in the civil rights era and gained further momentum through events like the 1969 Stonewall Riots, led by trans and queer activists. However, in recent years, DEI efforts have faced increasing political pushback. Since 2022, more than 30 anti-DEI legislative initiatives have been introduced across several U.S. states where eight of them already passed.2 Now, new executive orders are further targeting DEI measures, with consequences that extend well beyond the public sector.₃

 

What decisions were taken?

Since January 2025, the following executive orders have been enacted by the Trump administration:

Executive Order 14151: Bans all DEI programs in federal agencies, including staffing, budgeting, and program activities

Executive Order 14173: Eliminates all so-called “discriminatory preferences,” such as funding initiatives for women and minorities

Executive Order 14168: Establishes biological sex as the sole legal category for federal purposes.₄

In addition, U.S. institutions have been instructed to avoid specific terminology in official communications. Words like “Black”, “discrimination”, and “Diversity, Equity & Inclusion” are no longer present on government websites.₂

 

What does this mean for businesses and how are they responding?

While these measures are officially aimed at the public sector, the ripple effects are being felt throughout the private sector - particularly for companies with federal contracts or significant operations in the U.S. These organizations now face legal, strategic, and reputational risks. Under the new rules, DEI initiatives may be interpreted as unlawful preferential treatment and challenged in court. Additionally, companies taking a public stand for inclusion are facing mounting pressure from conservative groups and political actors.

Many major U.S. corporations, including Amazon, Google, Meta, Boeing, and McDonald’s, have already scaled back or eliminated their DEI goals. In contrast, companies like Apple continue to resist, as does Harvard University, which firmly defends academic independence and democratic values: “The University will not surrender its independence or relinquish its constitutional rights. No government — regardless of which party is in power — should dictate what private universities can teach, whom they can admit and hire, or which areas of study they pursue.”₅ Despite threats from Washington to freeze up to $8.5 billion in federal funding, Harvard refuses to dismantle its DEI programs.₆

The DEI policies of the Trump administration are putting increasing pressure on international companies as well. In late March, the U.S. embassies in France and Belgium called on companies with ties to the U.S. to discontinue their DEI initiatives. Both governments firmly rejected the request.₂ According to the German Chamber of Commerce, several German companies have also received similar letters from U.S. authorities.₇

As a result, German companies are now reviewing legal risks and possible implications for their business activities. While companies like SAP and Adidas have so far publicly reaffirmed their commitment to inclusive cultures, others - including Deutsche Bank, BMW, and Deutsche Telekom - have also rejected the U.S. administration’s demands.

Still, not all companies have stood firm. Aldi Süd has quietly removed DEI references from its U.S. careers site, and T-Mobile US, a subsidiary of Deutsche Telekom, has reportedly ended its DEI programs. _8,9

 

Why investing in DEI still matters

Diversity is reality, not a trend. And it can’t be legislated out of existence. In today’s labor market, organizations that want to attract and retain top talents need more than perks — they need a workplace culture that genuinely embraces inclusion. For younger generations, this is often a deciding factor when choosing an employer.

The research is clear: diverse teams are a key driver of innovation and long-term growth. Companies with greater gender diversity in leadership perform better — economically, culturally, and socially. Mixed leadership brings fresh perspectives, enables smarter decision-making, and strengthens future-readiness.

Especially for European companies, there’s a powerful case, economical and ethical, for continuing to invest in diversity. Turning away from DEI now would not only harm innovation, but also damage brand reputation and weaken commitment to democratic values.₈

 

How affected companies can still support DEI

Even under the changing political landscape, there are still ways for directly affected companies to promote diversity and equal opportunity. It is essential, however, to ensure that all measures taken are legally compliant.

Embeding fair and transparent HR Practices

The current administration claims to restore “merit-based” systems. Yet the reality has long shown: pure meritocracy is a myth. Regardless of the recent changes to DEI policy, companies should continue to define clear, objective, and transparent criteria for selection processes, performance evaluations, and promotions — and apply them consistently.₁₀

Opening programs to all employees

Under the new EEOC guidelines, programs aimed exclusively at marginalized groups may be flagged as discriminatory. Companies can adjust by opening access through inclusive language — e.g., “For LGBTQ+ employees and their allies” or “A network for Black employees and everyone working to build belonging.” Focus less on identity, more on addressing structural barriers.₁₀

Emphasizing shared goals

Language shapes culture. Phrasing like “management vs. staff” or “young vs. experienced” can create division. Organizations committed to DEI should use language that highlights shared responsibilities, common goals, and collective success.₁₀

 

The Trump administration’s new measures are challenging DEI efforts not only in the U.S., but around the world. While some companies retreat or remain silent, others are (still) standing up for inclusion. Now is the time for businesses to reaffirm that DEI isn’t just a strategic advantage, it’s a commitment to democratic values. Companies that protect and promote diversity are investing in innovation, resilience, and social cohesion.

 

How FLD can help you advance DEI

Many women’s leadership programs fall short because they treat symptoms, not root causes. That’s where our Gender-Check comes in: a strategic, science-based tool for driving meaningful change.

Gender-Check: Your strategic tool for more mixed leadership

Our multi-step process combines process analysis and cultural diagnostics to drive sustainable transformation:

Gender Facts Check: Analyzing your HR processes across the entire employee journey

Gender Culture Check: Assessing your lived company culture to identify hidden barriers and unconscious biases

Identifying fields of action: Clear, actionable recommendations for short-, medium-, and long-term impact

Providing assistance: Hands-on guidance through implementation and sustainable integration

Your benefits at a glance

✔ Structural anchoring of mixed leadership
✔ Enhanced employer branding and attractiveness
✔ Boosted innovation and competitive edge
✔ Meeting the expectations of a new generation of talent

 

 

NOTE:

This blog post was published on April 17, 2025. All information reflects the status at that time. Due to ongoing developments, we cannot guarantee the current accuracy or completeness of the content.

 

 

SOURCES

₁ Ending Illegal Discrimination And Restoring Merit-Based Opportunity – The White House
₂ USA: Trumps Feldzug gegen Vielfalt und Inklusion – DW – 01.04.2025
₃ https://civilrights.org/resource/anti-deia-eos/
₄ https://www.tagesschau.de/ausland/amerika/trump-diversitaet-100.html
₅ Alan M. Garber - view.hu.harvard.edu/?qs=351b45ebf3844ed74cb3e38b6aabf7321d561a60d923593b0fa56d07833ffcd9b095b487f8b48c80d4bccb8a2131ca6ef4cdb2fe9766379f78c7965d130d52babfaaf593dc5de3f5a692af14ce1305cc
₆ Harvard-Uni stellt sich gegen Trumps Forderungen | tagesschau.de
7https://www.tagesschau.de/inland/regional/rheinlandpfalz/swr-basf-und-daimler-noch-nicht-von-trumps-anti-woke-agenda-betroffen-100.html

₈ Unternehmen, stoppt Trumps Diversity-Wahn! | springerprofessional.de
₉ DEI-Debatte: Unternehmen reagieren auf Trumps Anti-Woke-Politik  
₁₀ Stamp Out Anti-Merit-Based Decisions, and Other Actions for Allies | LinkedIn