How corporate comms teams are managing Federal Government DEI policy reversal
The corporate communications function faces the task of repositioning company DEI policies while balancing regulatory compliance, stakeholder expectations and organisational values.
President Trump has officially ended diversity and inclusion initiatives within the US government and corporate America.
A White House statement in January 2025 described diversity, equity and inclusion (DEI) programmes as "illegal and immoral.” It called for their termination across the federal government, arguing that these initiatives constituted discriminatory practices rather than promoting equality.
The issue lands on the desk of the chief executive and corporate communications team because it cuts across the relationship management perspective of government affairs, the media and employee relations.
This shift reverses Executive Order 13985, issued by President Biden's administration three years ago, which sought to support underserved communities within Federal Government. That order established a framework for advancing equity through data collection and management initiatives to address diversity and inclusion.
The murder of George Floyd and the Black Lives Matter movement in 2020 put a focus on DEI initiatives within corporate America. This corporate momentum shifted in 2023 when a US Supreme Court ruling stated that positive discrimination could not be used as a criterion for university admissions.
At least ten states (Alabama, Florida, Idaho, Indiana, North Carolina, North Dakota, Tennessee, Texas, Utah and Wyoming) have since passed anti-DEI laws, triggering a rollback within corporate America. Organisations face difficult decisions balancing legal compliance against previously announced diversity commitments.
President Trump's most recent move has accelerated this change. US companies that work with the Federal Government or seek political favour are following his leadership.
Responses have varied widely, from public statements defending the shift to the quiet removal of DEI programmes. Supporters argue these changes return focus to merit-based decisions, while critics warn about potential impacts on workplace inclusion.
Media outlets are actively monitoring the reversal of corporate policy by companies such as Accenture, Amazon, Boeing, Disney, Ford and McDonalds. The business impact extends beyond compliance concerns to questions about talent acquisition and employee retention.
Some organisations are attempting to reframe the issue through language. JPMorgan Chase is rebranding its diversity, equity and inclusion programmes as "diversity, opportunity and inclusion."
The DEI rollback also has an international dimension. It creates conflict for management and employees in countries where DEI is viewed as an important intervention to improve an organisation's representation and the diversity of its decision-making. Multinational companies now face the challenge of potentially maintaining different standards across global operations.
The policy shift is a complex challenge for corporate communications teams. They must create messaging that balances regulatory compliance, corporate values and stakeholder expectations. It requires acknowledgement of political realities while maintaining authentic organisational commitments.
The most successful communications strategies will focus on transparency about policy changes while emphasising enduring company values.
A strategic communications framework for managing DEI policy change
This complex situation requires a thoughtful, strategic approach that balances the multiple stakeholder interests while maintaining organisational integrity. Here's a framework for considering this options based on a relationship management perspective.
Strategic assessment
Conduct a stakeholder analysis
Map all affected stakeholders (employees, customers, investors, regulators)
Assess each group's expectations, potential reactions and where stakeholder interests may conflict
Review organisational values and commitments
Clarify what core principles are non-negotiable for your organisation
Evaluate previous public DEI commitments and their status
Determine which values can be reframed while maintaining integrity
Communication strategy development
Create a transparent narrative
Acknowledge the changing political and regulatory landscape and explain how the organisation is responding to these changes
Maintain authenticity by aligning messaging with actual organisational practices
Develop audience-specific messaging
Develop bespoke communications for different stakeholder groups, addressing the concerns of each audience segment
Ensure consistent core messaging across all communications
Consider international nuance
Develop market-specific approaches for different regions
Create guidelines for global versus local messaging
Address the challenges of maintaining different standards across borders
Tactical implementation
Internal communications priorities
Provide clear guidance to managers on policy changes and talking points
Create safe spaces for employee feedback and dialogue
Demonstrate continued commitment to inclusive workplace practices
External communications planning
Determine whether a proactive or reactive media strategy is appropriate
Prepare responses for potential criticism or questions
Consider the timing and channels for any public statements
