Trump’s DEI crackdown sparks ethics exodus across UK businesses
US President Donald Trump’s crackdown on initiatives such as diversity, equality and inclusion (DEI) and environmental sustainability has drifted across the Atlantic.
According to research by law firm Freeths, over half of UK businesses (54 per cent) have changed the way they approach ethical policies and practices. While over a quarter (28 per cent) have made wholesale changes or abandoned them altogether.
The US pushback against DEI led to a widespread narrative that British firms had begun to replicate US business practices and that they had wound down their DEI efforts under pressure.
when City PM reached out in February to a few City law firms for comment on DEI, it received silence. This includes some businesses discreetly removing DEI commitments and marketing initiatives from their company websites after years of investments.
Freeths noted that, given the current climate, it was not surprising to see UK businesses failing to ‘walk the talk’ when it comes to putting ethics into practice.
The data, which consists of 250 top lawyers across UK corporates, highlighted that while most believe ethics in business decision-making is important, only a third of UK organisations are proactive in responding to ethical challenges.
It was also noted that 83 per cent of corporate legal leaders reported that ‘doing the right thing’ comes secondary to profit in business decision-making.
Philippa Dempster, senior partner at Freeths, stated: “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 law firm acted for sub-postmasters in the Post Office Horizon scandal. To which Dempster added, “Even in the light of the Post Office scandal, we’re seeing some UK businesses abandon valuable ethical and moral initiatives in response to outside influence.”