Donald Trump targeted DEI programs

Source: The post Donald Trump targeted DEI programs has been created, based on the article “Stand by DEI: It’s a social and business imperative” published in “Live mint” on 24 January 2025

UPSC Syllabus Topic: GS Paper2- International Relations-Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

Context: The article discusses how diversity, equity, and inclusion (DEI) initiatives in the U.S. faced setbacks under President Trump and some corporate leaders. It highlights the benefits of DEI for business performance and urges Indian companies to commit to these principles despite global trends.

For detailed information on Trump’s Second Term Reshapes America and World read this article here

What Happened to DEI Initiatives in the U.S.?

1. President Donald Trump targeted DEI programs, labeling them as harmful and shutting them down.
2. High-profile CEOs also criticized these initiatives, calling them racist and anti-American.
3. Major companies like Walmart and John Deere scaled back their DEI efforts.
4. These actions suggest that previous commitments to DEI might have been more about appearances.
5. The backlash happened despite a nationwide push for more DEI after the killing of George Floyd in 2020, showing a significant reversal in attitudes toward these initiatives in some sectors of corporate America.

Why is DEI Important for Business?

1. Improves Employee Retention: Businesses with robust DEI practices see a 2.4 times increase in employee retention, as found by BCG’s BLISS Index. This indicates a happier, more committed workforce.
2. Enhances Creativity and Innovation: Diverse teams bring varied life experiences, boosting creativity and innovation. This diversity leads to more effective problem-solving and product development.
3. Boosts Financial Performance: Companies with diverse viewpoints better meet customer needs, leading to superior profits. Diversity in teams correlates with better business outcomes.
4. Influences Consumer Choices: According to Kantar’s Brand Inclusion Index 2024, 75% of consumers consider a brand’s commitment to diversity when making purchases.

How Should Indian Companies React?

1. Defining DEI Goals: Clearly articulate the importance of diversity, equity, and inclusion in their mission and values.
2. Promoting Equality: Continue advancing DEI to address social and economic disparities prevalent in India, thus supporting national efforts toward equality.
3. Fostering Innovation: Leverage diverse teams to boost creativity, meet customer needs effectively, and improve financial outcomes.

Question for practice:

Examine how President Donald Trump’s administration and certain corporate leaders influenced the progression of diversity, equity, and inclusion initiatives in the U.S.?