More than half of UK businesses are altering their approach to ethical policies, including diversity, equity and inclusion (DEI) initiatives, due to criticism from the Trump administration, according to new research. The study, conducted by law firm Freeths, surveyed 250 general counsels and chief legal officers at leading UK organisations with revenues exceeding £100m.
The findings reveal that 28% of organisations have made wholesale changes or abandoned DEI and environmental sustainability initiatives entirely in response to US pushback against the so-called 'woke' agenda. A further 26% have implemented specific changes, while 32% are considering potential adjustments. This comes as US companies like Amazon, Disney, Google and Meta have rolled back DEI policies following Trump's actions.
Philippa Dempster, senior partner at Freeths, commented: 'The truth is that a drive for profit can significantly impact or impede ethical decision-making. Our research exposes a troubling reality: while businesses express commitment to doing the right thing, there’s still a significant gap between principle and practice.' The study also found that 83% of corporate legal leaders believe profit takes precedence over 'doing the right thing' in business decisions.
In the UK, the Reform party has vowed to scrap DEI initiatives from councils it controls, while the Blue Labour group has urged ministers to 'root out DEI'. Former Conservative ministers Suella Braverman and Jacob Rees-Mogg have called for the Equality Act to be abolished, though legal protections currently limit the extent of rollback. BT reportedly cut DEI initiatives from its bonus scheme for middle managers earlier this year.
Helena Morrissey, chair of the Diversity Project, described the report as 'depressing', stating: 'After every scandal that’s cost so much money and shareholders have suffered as well, why would people think, “Oh, now we can take the foot off the gas when it comes to being ethical”?' She added that ethics should not be politicised, saying: 'Ethics is all about doing the right thing.'
