Germany: Employers urged to defy US pressure on DEI

BDI urges German companies to maintain their principles despite US embassy attempts to enforce compliance with Trump's diversity policy rollbacks

Key points:  Germany’s BDI industry lobby group has called on employers to stick with their principles at their German operations after the US said its embassies were seeking to ensure contractors comply with US guidance on diversity, equity and inclusion (DEI) programmes. The association said firms were subject to laws in the countries where they operate, adding that:

"The BDI views with great scepticism the efforts of the US government to enforce political ideas with regard to corporate guidelines beyond its own national borders," 

"Corporate principles apply regardless of which government is in power in which country. We therefore encourage companies to stick to their principles."

Why this matters:  This is yet another conflict between US policy and EU wide corporate principles. This situation highlights the challenges multinational companies face in navigating conflicting political pressures and maintaining consistent corporate principles across different jurisdictions.

What might happen next:  On April 2, the New York Times reported that the U.S. was trying to “quell a diplomatic tempest roiling Europe this week after American Embassies in several countries sent letters to foreign contractors instructing them to certify their compliance with President Trump’s policies aimed at unravelling diversity program.” 

It claimed the State Department was walking back on the controversy, contradicting some of the details in the embassy letters, saying that the compliance requirement applies to companies only if they were “controlled by a U.S. employer” and employ U.S. citizens. .

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