While US companies quietly tuck away their DEI policies, UK businesses appear to be staying the course. For now, at least.

As political sentiment in the United States shifts dramatically, many private companies are retreating from the very diversity, equity and inclusion (DEI) commitments they spent the last decade building up. This sudden change has meant a policy that was once central to corporate strategy is being hastily scaled back, albeit quietly, with references to diversity now erased from annual reports. 

The policy was never without its sceptics, as many associate DEI policies with 'wokeness' and a 'toxic' work environment. Undoubtedly, for those who believed such policies were unfair or discriminatory, the change in political headwinds will come as a relief. But this swift reversal raises the question: was DEI ever anything other than an unconvincing corporate performance?

At the same time, companies have been busy re-evaluating their environmental goals, contributing to a broader rollback of the social responsibility commitments they once proudly flaunted.

However, last month, Accenture Song and its creative agency Droga5 were dropped from a pitch process by Transport for London (TfL) after the consultancy scrapped its DEI policy. A TfL spokesperson told Campaign magazine that the organisation was "proud to hold suppliers to account" and expected them to align with its own diversity and inclusion standards.

TfL's decision may be an indication that, in the UK, organisations are opting to stand firm on their DEI values. While a past UK government report questioned the rigour and impact of such programmes, a recent AlixPartners survey found two-thirds of executives believe DEI and other social initiatives have positively impacted financial performance.

Ben Watson, managing director and co-owner of brand agency Blue Goose, which helped TfL develop its purpose statement, welcomes the move. "It’s admirable to see TfL stand firm in the face of the DEI backlash in the US. This commitment will reassure employees that the organisation’s values are more than just words."

Other UK businesses have also been reinforcing their DEI agendas. McDonald’s UK, for example, has pledged to continue pursuing its target of 40% minority representation in senior leadership by 2030, despite its US parent company moving away from such targets. Similarly, Deloitte UK chief executive Richard Houston recently reassured staff that diversity remains "a priority", even as Deloitte US dismantles its DEI initiatives and encourages staff working on government projects to omit gender pronouns in communications.

Jo Coxhill, founder of Vision 29 consultancy, specialises in internal communications and engagement. She believes those companies scaling back their DEI efforts were never truly invested in meaningful change to begin with. "Many leaders are genuinely committed to building diverse, inclusive workplaces. For them, abandoning these efforts isn’t an option. Instead, they’re embedding DEI into the fabric of their culture, where it belongs," she says. "In these cases, communication must reinforce that commitment with clarity and consistency through education, storytelling and two-way dialogue."

While the corporate climate on DEI is cooling in parts of the US, many UK organisations seem committed to maintaining inclusion as a core business principle. It is unclear, however, whether the shift in sentiment will make its way to Europe eventually.

Jonathan Hassell, CEO and founder of accessibility agency Hassell Inclusion, has observed a clear divide between clients on both sides of the Atlantic. "DEI is under real pressure in American companies at the moment. However, our US clients that work globally are having success pushing back by noting that disability inclusion is on the ascendant in Europe, due to the requirements of the European Accessibility Act.

"I know Trump’s administration doesn’t like this stuff, but when it comes specifically to disability inclusion, the business case is strong. From my perspective, accessibility benefits everyone."

Acknowledging the 'woke' label often attached to DEI initiatives, Hassell emphasises the value of an inclusive workforce in driving economic growth. "Disability inclusion isn’t just about being politically correct; it’s both the right thing to do ethically and financially. Organisations that ignore it are making a major mistake. It’ll be interesting to see when Trump and others realise that accessibility is an absolute communications necessity."