Will corporate leaders keep their DEI cool under Trump?
GETTY IMAGES—JIM LO SCALZO

Will corporate leaders keep their DEI cool under Trump?

Donald Trump’s second term is off to a furious start.?

In less than two weeks, the president has issued dozens of executive orders, some specifically aimed at the workplace and longstanding rules around diversity, equity and inclusion.?

In one missive, he shut down all federal DEI initiatives, and put workers directly involved with those programs on leave, to be reassigned or terminated. In a follow-up presidential action, he set his sights on the business world by directing federal agencies to take “appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.” Agencies now tasked with creating lists of publicly traded companies, large nonprofits, foundations, associations, or higher education institutions they believe to be worthy of investigation.

Within the federal government, the president does have the authority to shut down diversity and inclusion initiatives. But when it comes to the private sector, legal experts say Trump’s moves are more scare tactics than legal checkmate.?

“If we’re looking at this from the private employer perspective, there’s actually not that much in these executive orders,” Kenji Yoshino, professor of constitutional law at NYU School of Law, told my colleague Lila MacLellan. “He’s creating fear that you’re going to show up on a list that you don’t want to show up on, and that’s going to cause companies to be more risk-averse than they probably need to be.”

The Trump administration has been clear about where it stands on DEI. The only question that remains is how corporate America will respond. Some companies have already rolled back their diversity and inclusion initiatives, and more will certainly follow suit. But others have audited their programs to make sure they’re legally viable, and are standing firm on their policies. Costco’s board, for example, recently advised shareholders to vote against an anti-DEI proposal which was ultimately voted down. Apple’s board is now doing the same.??

So all eyes are on corporate America. It’s up to each business leader to decide how they will meet the moment—and if they will keep their cool.???

Leadership Tip of the Week ??

The RTO wars may never end, but ClassPass and Mindbody CEO Fritz Lanman tells my colleague Sara Braun that he’s committed to flexible work arrangements for his employees. In fact, he believes that demanding RTO is like “forcing people to fax instead of email.”?

Leadership Next

2025 promises to be the year of AI for global business. For Deloitte US CEO Jason M. Girzadas , AI is front of mind for him and the CEOs he speaks with. Girzadas believes 2025 is the year of the full-time digital assistant, with advancements like Agentic AI deploying across a range of functions, driving both efficiency and growth. On this week's latest episode of #LeadershipNext, Girzadas talks to Diane Brady and Kristin Stoller about the shift from proof of concept to practical implementations, and how AI is reshaping workforce dynamics and enabling legacy brands to stay competitive.

Listen to the episode and subscribe to Leadership Next wherever you listen to podcasts, or read the full transcript here.

Those are our biggest leadership stories of the week.

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-Azure Gilman, Fortune’s Deputy Leadership Editor

Sam Houston

Project Specialist - Supply Chain Analyst en PepsiCo

2 周

FBI & Dept of Labor should start investigating DEI at employment agencies sending me emails & calling about jobs at El Paso, Texas employeer Schneider Electric All these have to be in touch with PepsiCo FLNA S&OP Carey Baldwin & Rachel Thomas, and all their direct hires

Jonathan Robins

? Strategic Ops ? Operations Management ? Rev Ops ? GTM Planning/Execution ? Team Building ? Marketing Development ? Vendor Management ? Stakeholder Management

3 周

DEI means your disabled neighbor can work part-time without fear of losing their job. It’s the grocery employee with Down syndrome who brightens your day, the autistic barista who gets your order right every time, and the veteran transitioning back to civilian life. It’s your pregnant colleague who relies on family leave and workplace accommodations to prepare for her first child while continuing to contribute professionally. When DEI initiatives are dismantled, it sends a clear message: 1. That the contributions of people with disabilities are less valued. 2. That veterans returning to the workforce don’t deserve support. 3. That women—especially those balancing motherhood and careers—will continue to be pushed even further beneath the glass ceiling. This administration is well aware of these consequences. They are not a by-product, they are the goal. Eliminating DEI is a policy of divisiveness and prejudice. An unwillingness to embrace the diverse people that make businesses stronger is bad business. (And less moral/ethical... for whatever that's worth anymore). #EquityAndInclusion #WomenInTheWorkplace #SupportVeterans #DisabilityInclusion #WorkplaceEquality

Will corporate leaders keep their DEI cool under Trump? Some will. Most won't

回复
Tommy Campbell

Co-owner/Publisher/Editor at The Leader & The Choctaw Sun-Advocate (Ala.)

4 周

God bless Donald Trump!!

Here’s the thing about DEI I don’t understand … why put anyone in a position where qualifications are based on what you look like and not what you know or your ability to handle the position? Can’t imagine putting a team together based on what each person looked like and not based on what their ability is to play the game and expect to win. ????????????????????????

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