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Diversity programs have been at the heart of corporate culture, providing opportunities to the marginalized. However, Trump’s new order is set to reverse generations worth of anti-discriminatory progress.
Within the first week of taking office, President Donald Trump has managed to amass controversy and shock. On Inauguration Day, he signed 26 executive orders, setting a record compared to previous presidents.
A day later, he signed another order that rocked the many boats of the US economy. Entitled ‘Ending Illegal Discrimination and Restoring Merit-Based Opportunity’, a bill was issued to end all diversity, equity, and inclusion (DEI) frameworks in the American corporate world.
Targeted at the underrepresented or marginalized groups, DEI initiatives are aimed at promoting the representation and participation of diverse groups within an organization.
Specific to the US, this includes people of color, women, veterans, members of the LGBTQ+ community, and people with disabilities. Initiatives created by companies range from inclusion and diversity training to having an assorted hiring panel. In today’s world, a DEI-inclusive workplace lays the foundation for progressive management globally.
Ever heard of the term ‘diversity hire’? Decades ago it was seen as a positive step towards a more equitable company culture. Today, however, it has taken a negative turn used to imply that an individual was hired due to all the checkboxes they ticked compared to their skills and qualifications.
Back to Trump’s order, the suspension of all federal DEI initiatives included a comprehensive review of existing employment practices and training programs. As an extension, it came with specific directives to dismantle all DEI-related programs and policies.
He argues that DEI programs promote discrimination rather than merit-based opportunities and are part of a ‘leftist indoctrination’. Further rationale from the administration includes claims that such programs undermine traditional meritocratic principles in hiring and promotion while imposing biases based on gender and race.
In the days following the order, many agencies and companies have been forced to rethink the positions of their DEI hires, including federal employees. For instance, the Department of Veteran Affairs announced that it had placed nearly 60 employees on paid leave, stating that these employees collectively earn $8 million annually.
The department is also working on ceasing DEI-related contracts amounting to $6.1 million. The seemingly random mention of the salaries gives the message that they hope to reallocate these funds to other areas of service, among other reasons.
Several major companies have also followed suit such as Target, Meta, Walmart, and McDonald’s. You’re likely questioning why. Well, actively going against Trump’s order could land brands in a pile of legal risks, loss of federal contracts, and increased regulatory oversight.
Yet, not all companies have decided to cower behind these potential threats. Costco, Apple, e.l.f Beauty, Goldman Sachs J.P. Morgan, and Chase have backed their DEI policies despite facing political and social pressure.
On the side of the public, Trump’s order has support from conservative groups who advocate for merit-based hiring practices. However, others are worried about how this order diminishes the efforts of marginalized groups to get the same opportunities as the dominant population in the US.
Historically speaking, marginalized groups have indubitably been targeted by prejudice and discrimination, especially in the job market. DEI initiatives were introduced decades ago to dispel any lingering sense of exclusion from corporate culture.
Despite this, there was still room to improve access to opportunities. By removing a stepping stone to these opportunities, however, the pursuit of genuine equality has been severely dented.
Moreover, there is a disruption of support structures like employee resource groups which provide support for those from marginalized groups. Due to their suspension, many groups have ceased communication due to fears of retaliation, leaving some employees feeling unsupported.
Overall, the order has sparked major cultural and social backlash with a reversal in progress. Trump’s decision harkens back to the 60s and 70s, where those of certain ethnic backgrounds had to fight twice as hard to have any chance of being hired.
Dismantling the structures designed to promote diversity and inclusion only exacerbates the remaining corporate disparity for the next four years.
