What are the consequences of the American DEI backlash on the European companies?

Today, many schools and universities, as well as corporations and governments & nonprofits, use the so-called DEI programs to address systematic inequalities that exist in modern societies and foster values of fairness and belonging. The word DEI stands for Diversity, Equity and Inclusion, and represents a whole set of policies that aim at achieving a higher degree of representation of people coming from different backgrounds such as different race, religion, sexual orientation etc. In other words, these policies try to provide access to opportunities for everyone, by creating an environment of mutual respect and support. They are usually implemented during hiring practices (through the adoption of quotas for example) or when assigning scholarships.

On the 20th of January, President Trump signed an executive order aiming at suppressing the implementation of the DEI programs and the requirements of contractors to promote affirmative actions fostering diversity. These rollbacks have put under pressure multiple European branchers of American multinationals. According to the Wall Street Journal, these European subsidiaries are adopting a “two-track” approach. On one hand, the companies in the US are rebranding DEI programs because of political pressure. On the other hand, in Europe the same companies are strengthening programs implementing diversity by using a different language so not to catch attention. Words like “anti-racism” are being replaced by “team culture” or “global collaboration” so that the main goals are maintained but the existence of an affirmative action is masked to the eyes of more conservative groups. On top of that, in many of the European branches the staff is being trained to be sensitive in engaging with their respective colleagues in the US. Therefore overall, the European offices are strategically localizing inclusion and avoiding US politically risky terms.

How did the DEI programs change in the US so far?

A 2023 study from the Pew Research Centre found that overall, 56% of employed American adults thought that increasing the DEI programs was a good thing, 30% of these people were Republican-leaning workers. Still, when Trump signed the executive order titled Ending Radical and Wasteful Government DEI Programs and Preferences, he imposed a reduction-in force to be implemented by the end of the month, meaning that agencies should “prioritize meaningful learning ahead of divisive ideology”. Some of the federal DEI staff was placed on leave. So far, several American labour rights organizations have tried to speak up against these orders, advocating that Trump’s measures are an attempt to returning the “old days” discrimination rather than a call for meritocracy.

Thus, several US companies have drastically reduced their amount of commitment to diversity policies: Walmart stopped participating to the Pride parades, Amazon changed its Policy Position page excluding mentions of DEI or Black people and McDonald’s has changed some of its commitments to suppliers based on DEI pledge. These drastic changes have not impacted diversity achievement goals in Europe so far, since several branches have been choosing consistency in their inclusive strategies, suggesting that the DEI backlash has so far been a purely American phenomenon with limited spillovers across continents.