Good morning!
The Trump administration is pushing private companies to dismantle their DEI programs, but many business leaders are still standing by their diversity and inclusion policies, according to a new survey.
Around 53% of C-suite leaders surveyed after the inauguration say the administration’s rhetoric and policies are likely to decrease DEI commitments within the corporate world overall, according to a survey from employment law firm Littler conducted in January of 2025. However, 49% say they don’t plan to rollback their own DEI programs, and only 8% admitted to seriously considering making fundamental changes.
That’s because many companies are taking a “wait-and-see” approach, says Jeanine Conley Daves, employment attorney and member of the firm’s IE&D Consulting Practice. A majority (60%) of respondents say their organization is waiting on further developments from the new administration, including how the latest guidelines laid out in the recent executive orders will be enforced. Leaders are also likely in talks with their legal teams to ensure they’re not needlessly dropping practices they’ve found to be successful.
“Despite the increased scrutiny, many companies seem to be taking a measured approach, rather than rushing to end or scale back IE&D efforts,” says Conley Daves. “It makes sense not to make extensive changes to efforts and initiatives that have helped to build a strong company culture.”
She adds that “many companies have recognized that they have been compliant with Title VII, so as long as they are compliant, companies are finding reasons not to pull them back.”
Even though nearly half of companies are standing by their DEI programs, they certainly feel the chilling effect of a presidential administration eager to crack down on diversity and inclusion initiatives. More than half of C-suite leaders (55%) say they are concerned about the risks of lawsuits, additional government actions, and shareholder votes, according to the survey. That number rises to 74% of executives who work for businesses that are federal contractors (who have been specifically targeted by a Trump executive order), and sits at around 67% and 65% respectively for public companies and large employers with a workforce larger than 5,000.
Out of the companies that are choosing to roll back their DEI programs, the survey finds the primary concern is external communications and the language used to describe certain initiatives. Around 61% of company leaders who are considering rolling back their policies say they are weighing whether to remove or alter DEI-related language from their websites, proxy statements, or other outward-facing communications.
But 52% of these leaders are also considering dropping benchmarks and metrics around certain DEI goals, according to the survey. Conley Daves, however, notes that there can be value in companies continuing to track such data under a privileged review so as not to lose valuable insights about their workforces.
“It’s hard to change what you don’t measure,” she adds.
Brit Morse
brit.morse@fortune.com
Around the Table
A round-up of the most important HR headlines.
As more companies nix their DEI commitments, consumers are turning towards small businesses to show their support for diverse supplier commitments. Washington Post
Large tech companies like Google and HP plan to release tech that allows workers to communicate in 3D without wearing glasses or VR headsets. Wall Street Journal
Companies are finding it challenging to determine what DEI programs are legal or not without a clear definition of the term. The Atlantic
Watercooler
Everything you need to know from Fortune.
Bad behavior. The company’s board is ousting Kroger’s longtime CEO after an internal investigation found issues with his “personal conduct.” —Paolo Confino
Wardrobe change. The CEO of Poshmark says he relies on Gen Z for fashion inspiration, saying the generation helps him stay up-to-date with the latest trends. —Emma Burleigh
Buying it back. 23andMe CEO Anne Wojcicki is trying to buy back the DNA testing company she founded for about $75 million—a surprisingly low price for a company once worth $6 billion. —Lila MacLellan
