Amira Awan

The approach of the Trump Administration towards Diversity, Equity, and Inclusion (DEI) has created backlash that had not just been felt within the US, but also globally, including in the UK.  Under Trump’s leadership, DEI policies in the US have faced intense scrutiny, and his administration has accused diversity initiatives as being alienating and politically motivated. Consequently, many large U.S companies have begun rolling back their DEI efforts, which has raised significant questions about the future of inclusivity within the workplace. This shift has not just had implications for American companies but also for other global organisations, particularly in the legal sector, and law firms are having to navigate this changing global landscape.

The US Retreat from DEI Initiatives

Early into his presidency, President Trump signed executive orders that prohibited federal agencies from enforcing DEI policies, on the basis that they are supposedly discriminatory.  Consequently, many major US corporations including Walmart and McDonalds, have begun to either reduce or eliminate their DEI initiatives.  For example, recently the professional services company Accenture paused its diversity goals and career development programs aimed at certain demographic groups, whilst other law firms have reconsidered their approach to hiring and promotion.

This shift away from DEI policies in favour of a ‘meritocracy’’, which Trump has championed through his executive orders, sparks discourse about the true meaning of equality within the corporate sphere.  Although in an ideal world a merit-based approach would be appealing, this objective approach fails to account for the inherent systematic barriers that can inherently disadvantage underrepresented groups.  For example, a study by the Pew Research Centre found that around half of Black (52%) and Asian (51%) workers believe that being White makes it easier to be successful where they work. Additionally, 65% of FTSE 350 CEOs were privately educated. This demonstrates how in reality without DEI initiatives, companies are at risk of contributing to further workplace inequality and discrimination, making it even harder for marginalised individuals to progress in the workplace.

Challenges for UK Law Firms 

For Law Firms in the UK, particularly US law firms, the risks of abandoning DEI policies pose a plethora of legal and reputational risks.

From a reputational perspective, it is no secret that in the UK, diversity and inclusivity are central to the values of many firms as well as clients.  Consequently, firms that appear to retreat from DEI values risk alienating diverse talent pools, which will not only damage their reputation but also cause them to lose competitive advantages.  Particularly because many members of the younger generation including myself, place significant merit in the value of inclusivity in the workplace.  UK law firms that decide to scale back on DEI initiatives may find it harder to attract and retain top talent, this is a particularly significant issue in an industry whereby many individuals increasingly view diversity as a core business strength.

From a legal perspective, UK firms are required to demonstrate that they have taken reasonable steps to prevent discrimination and harassment from occurring under the Equality Act 2010. Therefore without DEI policies in place, firms will struggle to meet these statutory requirements, which could lead to further vulnerabilities.  This issue has gained further relevance in a recent discussion by the Law Society Gazette. Specifically, this discussion concerned how global firms, including UK based offices are scaling back on their DEI initiatives in response to pressure from the US government.  For example, when the global law firm White & Case were asked by the US federal office whether they had been adhering to the new rules introduced by the Trump administration they confirmed of their diversity and inclusion function, stipulating that it was going to be replaced instead by a ‘professional skills training and engagement’ programme.  The Law Society Gazette further explained how, firms that had been targeted by the Trump administration including Freshfields have had altered their website branding from ‘diversity and inclusion’ to ‘culture and inclusion’.  Arguably this demonstrates a wider trend of firms having to take precise care and precaution to ensure that they are not accused by the Trump administration of breaching the new proposed ‘diversity’ initiatives.

The Future of the Global Corporate Sphere

It is fundamentally clear that the Trump administration’s stance on DEI is significantly reshaping workplace culture, particularly in the US.  However, it is also clear that the consequences of these new policies are having far reaching consequences across jurisdictions.  UK firms are in a unique position, this is because they are dealing with US pressures to reduce DEI efforts as well as legal and reputational challenges in the UK, that aim to (rightfully) encourage inclusivity and fairness in the workplace.  Therefore, while some companies may adopt a more meretricious approach towards hiring and promotion, they will also have to ensure that they also have to pay attention to many other fundamentally important considerations including reducing discrimination.

Additionally, it is curial to note that failing to properly attract diversity within the workplace will also by default have significant repunctuations for firms’ business strategy.  This is because aside from encouraging equality and anti-discrimination, a diverse workplace is also more likely to enhance innovation and improve business performance, as a wider range of backgrounds and experiences encourages a more nuanced and varied range of perspectives on a variety of pressing issues.  Therefore, global companies that continue to embrace the values of diversity and inclusion will experience a vast range of benefits, but also have to deal with the difficulty surrounding the threat of punishment by the Trump administration.

Overall, it will interesting and also nerve wracking to witness how the Trump administration’s stance on Anti DEI is potentially going to force global law firms, particularly those with UK ties, to maintain a balance between meeting US political demands and upholding legal and ethical obligations to foster a more inclusive and thus successful workplace.

Sources used:

The Law Society Gazette:

https://www.lawgazette.co.uk/news/uk-law-firm-offices-caught-by-trumps-dei-assault/5122928.article

The Guardian:

https://www.theguardian.com/law/2025/apr/07/uk-firms-diversity-and-inclusion-lawsuits-us-trump

The Financial Times:

https://www.ft.com/content/c2320415-dcf6-4b69-acd4-3187507d762c

(See other sources in footnotes).