What Trump’s DEI Cuts Mean for Ireland

Introduction

The backlash against diversity, equity, and inclusion (DEI) initiatives has been gaining momentum in the United States, with President Trump spearheading efforts to dismantle such policies through a series of executive orders. These cuts have had an immediate impact on corporate America, with major companies like Meta, McDonald’s and Target rolling back their DEI commitments. But the implications extend far beyond the US, raising the question: what does this shift mean for businesses worldwide, particularly in Ireland?

How the DEI landscape shifted

The 2020 murder of George Floyd catalysed a surge in corporate DEI initiatives, with businesses across sectors setting ambitious diversity targets. Meta set a goal in 2020 to double the number of Black and Hispanic employees in the US by 2024 — achieving this two years ahead of schedule [1]. Apple committed $100 million to a Racial Equity and Justice Initiative, funding Black-owned businesses and Historically Black Colleges and Universities (HBCUs) [2]. Google pledged to increase Black leadership representation by 30% by 2025 and invested $175 million into economic opportunities for Black businesses and job seekers [3]. Meanwhile, Nike pledged $40 million over four years to support Black communities and businesses [4].

However, as DEI became more entrenched in corporate policies, it also became a target for criticism. Early detractors argued that DEI efforts prioritised race and gender over merit, leading to preferential treatment. Others suggested that such initiatives violated anti-discrimination laws by disadvantaging white applicants. This sentiment gained traction, and as conservative pressure mounted, businesses like Disney, Target, and Bud Light faced consumer boycotts over their inclusion-driven marketing campaigns [5]. “DEI efforts have irritated people, especially white men,” said Peter Cappelli, professor of management at the University of Pennsylvania’s Wharton School. “Inclusion efforts, such as training, sensitise you to your own biases, which no one wants to hear.” [6]

Others are opposed to DEI for more practical reasons: they think it doesn’t work. According to an Axios/Harris Poll, 57% of Americans said DEI initiatives had no impact on their careers, while 16% explicitly stated they had been hindered by them [7]. Additionally, a report by the previous UK government found that many DEI programmes lacked rigour and failed to track impact, stating, “The collection of robust data and insights is rare” [8]. Meanwhile, evaluating the situation two years on from George Floyd’s murder, Forbes writes that, “Two years later, there is evidence that the wave of activity seen in 2020 has been largely performative in nature, and that little actual progress has been made.” [9]

The hostility towards DEI was further bolstered by the Trump administration. Upon returning to office in January, Trump swiftly issued executive orders dismantling federal DEI programmes, including the directive to end all federal DEI offices and equity action plans. One particularly controversial order, titled Ending Illegal Discrimination and Restoring Merit-Based Opportunity, scrapped affirmative action mandates for federal contractors and called for the identification of “the most egregious and discriminatory DEI practitioners” within 120 days. [10]

Corporate America’s response

For some companies, these policy shifts were the catalyst to dismantle their DEI initiatives altogether. Accenture, headquartered in Dublin but with extensive operations in the US, recently announced it was scrapping its diversity targets. “We are and always have been a meritocracy,” said Accenture CEO Julie Sweet, justifying the decision as an adaptation to the evolving US landscape. She said the decision came “as a result of our continued evaluation of our internal policies and practices and the evolving landscape in the United States, including recent Executive Orders with which we must comply” [11]. Other firms who were once keen to boast of their diversity credentials –– such as Walmart, Amazon, Starbucks and Disney –– quickly dropped them in response to the President’s decree.

Other firms, however, have sought a middle ground. JPMorgan Chase, for instance, has reaffirmed its commitment to diversity, tying inclusion directly to performance and innovation [12]. Costco’s shareholders recently voted overwhelmingly to uphold DEI policies.

Joelle Emerson, chief executive of the US-based diversity consultancy Paradigm, highlights the paradox: “It looks like most companies are standing by their goals of creating fair, inclusive workplaces, while at the same time distancing themselves from a politicised acronym. The acronym is far less important than the work.” [13]

This tension is evident in the statistics. A Paradigm report found a 22% decrease in Fortune 100 companies’ use of terms like ‘DEI’ and ‘diversity’ between 2023 and 2024, yet a survey by AlixPartners revealed that two-thirds of executives believe initiatives tied to social issues — including diversity — positively impact economic performance. [14]

Even among businesses that remain committed to inclusion, there is a sense of exhaustion. Jennie Glazer, CEO of the diversity think tank Coqual, notes that legal risks and political polarisation are prompting many leaders to pause and recalibrate. One executive confided, “It’s not that our leaders don’t care –– it’s that they’re exhausted by constant change and the feeling they must ‘get it right’ all the time” [15]. Another, while affirming commitment to DEI, described business leaders as “overwhelmed.”

Will Ireland follow the US lead?

The concern now is whether Trump’s hardline stance on DEI will have a trickle-down effect internationally. “When the US sneezes, the UK catches a cold,” says Asad Dhunna, founder of the inclusion consultancy The Unmistakables [16]. “However, when it comes to DEI, we’re in a period of waiting to see just how immune we are to the MAGA/Trump love over on this side of the pond.” It’s hard to see how any germs that are UK-bound can skip over the island to its west.

For Ireland, the stakes are particularly high. The country hosts the European headquarters of numerous US-based multinationals, making it susceptible to shifts in American corporate culture. Accenture’s retreat from diversity targets may set a precedent for other companies operating in Ireland.

Laurie Ollivent, co-head of the diversity faculty at Linklaters, warns that businesses considering a rollback on DEI should weigh legal and commercial risks. “If companies are considering pausing or retreating from their corporate DEI commitments, there may also be legal and commercial risks to consider.” [17]

Unlike the US, Ireland follows EU equality law, which allows for “positive action” to rectify existing inequalities, provided it does not grant automatic preference to one group over another. However, Ireland does not have an equivalent to the US’s affirmative action policies.

Affirmative Action vs. Positive Action: The Irish context

Trump’s crackdown on affirmative action has had sweeping consequences in the US, particularly after the 2023 Supreme Court ruling that race-conscious admissions at Harvard and the University of North Carolina violated civil rights law [18]. While affirmative action in employment was always regulated differently, US companies had long been mandated to adopt diversity initiatives.

In contrast, Ireland’s legal framework is more cautious. The EU permits positive action to support disadvantaged groups, but any rigid quotas that give automatic preference to one demographic over another are unlawful. Instead, Ireland allows softer quotas where equally qualified candidates from underrepresented groups may be given preference, provided individual merit is still considered.

This distinction is crucial, as it underscores why a direct importation of the US’s anti-DEI stance may not align with Irish and European legal norms. However, there is a risk that companies operating in both jurisdictions may align their global policies with the US trend, diluting DEI efforts in Ireland.

DEI Positives

Despite the current backlash, there is strong evidence that diversity initiatives contribute to business success. Research shows that companies with diverse executive teams are:

21% more likely to outperform competitors on profitability [19]
27% more likely to achieve improved value creation [20]
70% more likely to capture new markets [21]
36% more likely to outperform their peers when ethnically diverse [22]

Given that 76% of businesses struggling to recruit cite difficulties in finding people with the right skills, broadening the talent pool through DEI should be a commercial priority rather than a political bargaining chip. [23]

Aneeta Rattan, professor of organisational behaviour at London Business School, sees this moment as revealing: “If companies are rushing to embrace an anti-DEI agenda, then I wouldn’t consider this a change. Almost no one goes from truly caring about DEI to embracing the opposite agenda. Those making major shifts right now are simply showing us who they have always been.” [24]

What Trump’s DEI cuts means for Ireland

Ultimately, Trump’s DEI rollback is more than just a domestic US issue — it’s a test of corporate values on a global scale. While some companies are retreating, others are doubling down on inclusion, recognising that diversity isn’t just a moral stance but a business imperative. For Ireland, the challenge is clear: will it maintain its own commitment to workplace equality, or will it follow the US lead in scaling back DEI efforts? With global corporations shaping policies across borders, the answer will define Ireland’s corporate culture for years to come.