With the federal government aiming to eliminate diversity, equity, inclusion, and accessibility programs in the public and private sectors, HR is tasked with maintaining legal compliance while staying dedicated to inclusion and belonging.
By Maggie Mancini
American companies are facing uncertainty over the future of corporate diversity, equity, and inclusion (DEI) in the wake of several executive orders issued by President Trump earlier this year. The orders aim to eliminate diversity, equity, inclusion, and accessibility (DEIA) programs in the public and private sectors, directing the Trump administration to terminate DEIA offices, programs, and policies within the federal government; repeal prior orders aimed at improving equal opportunity in the workplace; require federal contractors and grantees to certify that they aren’t operating any DEI programs; and issue government agencies to challenge DEI in the private sector through civil compliance investigations.
In response to these orders—and previous efforts by DEI opponents—organizations are either rethinking and rolling back or defending their initiatives. This has made national headlines. Google, Target, and Accenture are among companies that have pulled back on diverse hiring goals, Reuters reported. PepsiCo, GM, PayPal, and Comcast have altered or removed references to DEI in their annual reports to investors, according to NPR.
Organizations including Costco, Apple, Ancestry, Patagonia, and Delta Air Lines have defended their DEI programs. Rather than reversing course or doubling down, McDonald’s, Warner Bros. Discovery, and Citigroup have reimagined their programs with a focus on engagement and belonging—avoiding legal ramifications while retaining a commitment to inclusion.
Navigating the Legal Landscape
For HR leaders, navigating this uncertainty may require consulting with their organization’s legal team to ensure compliance, as the executive orders “increase the risk private businesses face of being sued for their DEI programs and losing out on federal contracts,” says Justin Outling, partner and director of diversity and inclusion at Brooks Pierce. While the executive orders are not law and do not change any laws, their central goal is to deter DEI programs, he says.
“Companies can still practice their DEI values if they manage legal and business risks,” Outling says. “Companies should evaluate whether the executive order and recent DEI-related cases affect their DEI programs. The orders and cases could reach companies if, for example, they receive federal funds.”
While the executive orders directly impact federal contractors and grantees, the ripple effects extend beyond those businesses, says Sarah Peterson Herr, JD, legal editor at Brightmine. Organizations should review existing programs, identify areas that may be impacted, and develop a plan to stay compliant. This might mean adjusting public-facing language, reevaluating training programs, or focusing on broader talent strategies.
Outling says that after evaluating their programs, companies should review every component of their DEI programs, being mindful of:
- whether modifications would provide greater clarity and reduce risk;
- the costs, financial and otherwise, of potential modifications;
- the trade-offs they are willing to make to prioritize their values;
- statements they have made regarding their values and programs; and
- who will be affected, as well as their relative importance to the company.
For companies that have previously implemented DEIB initiatives, rollbacks could prove challenging. Prospective and existing talent may feel that the company was hopping on a trend rather than investing in a core value, Herr says.
“Employees, particularly those from historically underrepresented groups, may feel less valued or see fewer growth opportunities within the company, potentially leading to employee disengagement, a decrease in employee satisfaction, and increased turnover,” she says.
When it comes to recruitment, it’s clear that job seekers are increasingly considering a company’s culture and values when making employment decisions, Herr says. She explains, “Employers now need to consider how their decisions may impact brand loyalty. Some companies who have minimized their commitment to DEI have suffered market value losses in the billions over a few short months, while those who have emphasized their commitment to DEI continue to thrive.”
Changes to existing DEI policies don’t just impact employee retention and recruiting but may impact a company’s bottom line, Herr says. As the landscape continues to change in response to federal policy changes, there are a few ways for HR leaders to prepare.
- Present a data-driven business case for maintaining inclusive policies. “Framing DEI efforts in terms of talent development, innovation, and market competitiveness can help align leadership perspectives even in politically charged and uncertain times,” Herr says.
- Transparency and communication are paramount. “If changes are made to DEI programs, clearly communicate the reasoning behind these changes and what they mean for employees,” Herr says. “HR leaders should focus on fostering open dialogue and psychological safety to make sure that all employees feel heard and valued.”
- Engage those who are most likely to feel strongly about DEI programs before making changes. “Such proactive communication dramatically decreases the intensity of negative reactions to changes,” Outling says.
- HR and business leaders should manage expectations. “Many people are not aware of, or do not care about, the underlying legal and business realities that shape policy,” Outling says. “Creating an awareness of a new reality while reaffirming commitment to company values is a balancing act that will be needed in this new environment.”
How HR Leaders Are Adapting
“DEI didn’t fail, it got stuck,” says Annie Osinski, vice president of HR at Inclusively. “Many companies tried to address DEI in silos, rather than at scale. With a shrinking workforce and a widening skills gap, inclusion isn’t just the right thing to do; it’s a business imperative.”
The company is not changing its DEI initiatives in response to the president’s executive orders, Osinski says. DEIB is foundational to Inclusively’s mission, and the company is leveraging the expertise of subject-matter leaders to maintain compliance.
“Our approach has had a very positive impact on employee engagement, talent acquisition, retention, and morale,” Osinski says. “In terms of talent acquisition, we’re fortunate to be able to attract top talent from across the country because of our commitment to remote work.”
Inclusively prioritizes providing accommodations, modifications, and personalized workplace opportunities—which the company calls “Success Enablers”—as early as the interview process, Osinski says.
Similarly, Barge Design Solutions is not wavering in its commitment to fostering an inclusive culture, says Karen Cosentino, the company’s chief people officer. “We believe that diversity of thought, background, and experience drives innovation, strengthens our teams, and enhances the solutions we deliver.”
Rather than reacting to policy changes, Cosentino says, Barge remains focused on creating a workplace where all employees feel valued and empowered.
“We focus on hiring, developing, and advancing the best talent for each role, and this approach has resulted in steady increases in diversity year over year, especially in areas where our industry has historically been underrepresented,” Cosentino says. “Additionally, we provide opportunities for employees to connect through volunteerism, professional development, and social groups, reinforcing our belief that belonging is central to our culture.”
By focusing on hiring the best talent for each role, Barge has seen steady increases in representation, particularly in areas where the architecture, engineering, and construction industry has historically had a higher percentage of men.
For Marvin Figaro, director of DEI strategic partnerships at Kelly, the organization embraces inclusion and belonging because its leaders believe that it’s the right thing to do—and that it’s good for business.
“Our inclusion and belonging initiatives have always been compliant with the law and will continue to be,” says Marvin Figaro, director DEI strategic partnerships at Kelly. “We remain committed to connecting job seekers of all backgrounds with work that enriches their lives while fostering an inclusive workplace where all employees are valued for their perspectives and contributions.”
Figaro explains that Kelly champions fair hiring practices and helps its clients recruit from underrepresented talent pools—including veterans, job seekers without four-year degrees, those who have had interactions with the justice system, and neurodiverse talent.
At isolved, DEIB is not a standalone initiative, but a core part of the organization’s mission, says Chief People Officer Amy Mosher. “Our foot remains firmly on the pedal when it comes to DEIB,” she says. “While some organizations may be reconsidering their strategies due to what they are seeing on the news, we recognize that deprioritizing inclusion risks losing talent, customers, and long-term market relevance.”
The organization takes a “balanced approach,” aligning business goals with workforce needs to ensure sustainability. Establishing a culture where employees feel valued can enhance engagement, innovation, and sustainable growth, which, in turn, leads to higher workforce participation and a more inclusive workplace.
“We’ve learned that DEIB directly influences employee experience, which in turn shapes customer experience and business success,” Mosher says. “We believe that many employees actively seek organizations that invest in DEIB, and our focus on inclusivity has strengthened engagement, retention, and morale. By prioritizing belonging, we not only attract and retain top talent but also cultivate a workplace that fosters innovation and collaboration.”
Program of Many Names
What organizations call their diversity programs tend to be as diverse as their offerings. Some of the most common acronyms include:
- D&I: Diversity and Inclusion
- DEI: Diversity, Equity, and Inclusion
- DEIB: Diversity, Equity, Inclusion and Belonging
- DEIA: Diversity, Equity, Inclusion, and Accessibility
Cultivating Inclusion and Belonging
With or without stated DEI goals, fostering a culture of inclusion and belonging is paramount. Here are ways that HR leaders can cultivate these values within their organizations.
- Invest in daily practices that respect employees’ unique experiences. “Simple steps like inclusive meeting protocols, where everyone has a voice, and offering flexible benefits to accommodate diverse live circumstances can go a long way in demonstrating your organization’s values,” Osinski says.
- Encourage leadership vulnerability to build a positive work environment. By building open communication channels where all perspectives are valued, organizations can encourage inclusion and belonging, Osinski says.
- Establish employee resource groups to better understand diverse employee experiences. “All employees and leaders play a role in fostering a workplace culture of inclusion and belonging where different perspectives, viewpoints, and contributions are valued,” Figaro says. Allyship programs can also connect employees across different experiences and backgrounds, Mosher adds.
- Embedding DEIB into everyday business operations. “Companies that maintain a commitment to inclusivity, whether it’s provided through leadership development, mentorship programs, or workplace culture, will have a competitive advantage in recruiting top talent,” Herr says.
