UK: Business remains committed to DEI

Despite recent moves by the Trump administration, 71% of UK businesses maintain their commitment to DEI… meanwhile legal experts warn that DEI reductions could increase discrimination liability risks

The key points: Analysis by the Institute of Directors shows that 71% of UK businesses are not planning to change their approach to diversity, equity, and inclusion (DEI), despite US firms scaling back such policies. Only 10% of UK firms plan to reduce DEI activities, while 8% will review the matter this year, and 4% plan to enhance their DEI initiatives.

Why this matters: British businesses view US government and company decisions as having little impact on their own DEI programs. However, the Employment Lawyers Association warns that reducing DEI efforts could increase the risk of legal action and make defending against discrimination claims more difficult. IoD policy chief Alex Hall-Chan said: 

“Particularly for employers with no US presence, the prevailing view among British businesses is that decisions made by US government and US companies will have little to no bearing on investment in their own [DEI] programmes

Meanwhile, businesses face a greater risk of legal action if they follow their US counterparts in cutting efforts to improve diversity and inclusion, according to Caspar Glyn, KC, chair of the Employment Lawyers Association (ELA). The ELA, which has 7,000 members, says British companies could open themselves up to “adverse findings of discrimination” if they unpick policies designed to enable diversity equity and inclusion (DEI). In an open letter to businesses, Glyn said that defending a company against discriminatory acts made by an employee was already difficult but “would be hopeless” without DEI policies in place. 

What might happen next: UK businesses may continue to prioritize DEI initiatives, potentially diverging from US trends. This could lead to a more inclusive workplace culture in the UK and potentially attract talent seeking diverse work environments.

What you should be doing:  Maintain or enhance your DEI policies to mitigate legal risks and foster an inclusive workplace. Stay informed about DEI best practices and legal requirements to ensure compliance and reduce the risk of discrimination claims.

See Guardian news story here.