Hello everyone.
Among Trump's many actions, one of the most impactful is his aggressive stance on diversity, equity, and inclusion. His administration’s rollback of various policies has left businesses and organisations in the U.S. reeling. The UK is not immune to the ripple effects of these political shifts. So, what is going on in the UK and what are UK PLCs’ responses to the rise of a more exclusionary narrative coming from the other side of the Atlantic?
Firstly, some clarity on what Trump is doing…
His attack on inclusion and diversity initiatives is largely framed as an effort to eliminate what he calls “race-based” policies that, in his view, undermined meritocracy. His action has been to ban diversity training for federal contractors. His rhetoric is perhaps more damaging - often filled with polarising and inflammatory language, legitimising poor behaviour and reinforcing the myth that diversity comes with poorer performance. This is despite research from Mckinsey (2020) showing that companies in the top quartile for ethnic and racial diversity are 36% more likely to outperform their industry peers financially. And there’s many more stats where that came from.
My clients with US offices tell me that businesses are either 1) Using it as an excuse to drop initiatives they didn’t have their heart in anyway, 2) Digging their heels in, or 3) Using it as a moment to reframe and think.
What about in the UK?
Major companies like Barclays, Unilever, and PwC (in the UK) have been outspoken in their continued dedication to diversity, equity, and inclusion.
For others (especially those with a US HQ) it has been time to walk away. I personally think mistakes have been made in the past in the diversity, equity and inclusion world and I’ve been pretty vocal about that. I think it's a good time to pause and re-evaluate. We have looked at polls and spoken to business leaders and are finding that the way many UK businesses are responding demonstrates resilience, creativity, and an unwavering commitment to inclusion. My client tells me it is those that were convinced of the ‘heart’ case for it, as well as the ‘head’ case for it, that are sticking to their guns.
Polarising the UK public.
Last week's Times had some interesting stats on how Britons are being influenced - 53% of Britons think following Trump on diversity, equity and inclusion would be bad for business. This sentiment is highest amongst the young as you'd expect. It's actually not until the 55+ age group that the index shifts. Why would it be bad for business? The over-riding sense is that we'd miss out on talent and also appear inauthentic. After publicly championing diversity, equity and inclusion for years, suddenly changing position seems a risk. The British public value authenticity.
However, the remaining 47% think otherwise and are more likely to be male and 55+. This demographic is likely to be overrepresented at the top of businesses, yet they'd do well to understand what the younger cohorts (and the bulk of their talent) are thinking. It's a must have for younger generations who prioritise inclusivity and fairness in their employment choices.
Inclusion rather than diversity and equity
It has perhaps been the focus on diversity and equity that is prompting the greatest backlash. Yes, what we measure gets done, but the focus on diversity numbers has come with a significant negative impact as well. We hear stories all the time about positive discrimination which I'm constantly having to remind people is illegal in the UK.
Inclusion is notoriously harder to measure and, based on our conversations, remains critically important to UK leaders. At a time with decreasing trust in organisations and high churn rates, of course it’s imperative to create an inclusive culture - for which you need inclusive leaders. It is hard-baked into many leaders’ beliefs that inclusion leads to higher retention rates and greater productivity and innovation. The same hasn't always been true about diversity - despite the excellent work from McKinsey etc.
Leaders are embracing conversations about inclusion with the belief that they are essential for the progress of both society and the economy. The focus on creating fair and supportive work environments is increasingly seen as essential - not just morally, but also for long-term success in an ever-changing global market.
Reframing DEI
I think the acronym is getting in our way here. It's perhaps easier to reject the acronym than it is to reject the truth that sits behind it. How about we start using the actual words?
Verna Myers says we are negotiating what we should be celebrating, and I think she's spot on. Being human is about being part of a rich tapestry of different cultures, religions and experiences. It is what makes this thing of being alive so amazing. Despite these differences, every single one of us is hardwired to need love and belonging. Again, it’s the human condition. As Jennifer Simpson, MBA aptly coined, “DEI is not just part of the lexicon—it’s a way of life!”
Maybe it's time to drop the acronym (which you may have noticed we’ve done!) and talk about inclusive cultures, belonging, living our values, vulnerability, resilience, communities, inspiration and all the amazing things that make us human.
We always love to hear from you so feel free to reply with your thoughts!
Team THC x