C-Suites Delay DEI Rollbacks Despite Trump Enforcement Threat

The Trump administration’s targeting of corporate DEI programs has heightened anxiety about litigation and government penalties, particularly among executives managing federal contractors and publicly traded companies, according to a law firm survey.

More than half, 55%, of executives told the employment-focused law firm Littler they’re more worried about diversity-related lawsuits, government enforcement actions, and shareholder proposals after President Donald Trump’s Jan. 20 inauguration than they were prior to it. The increased fears came from 74% of executives at federal contractors and 67% at public companies, as they are “highly visible targets for regulators,” Littler said in its survey released Wednesday.

Despite the heightened fears, 60% said they’re taking a wait-and-see approach, not planning any further rollbacks of their DEI efforts until the federal government issues new guidance or enforcement plans.

“The first weeks of the new administration have forced business leaders to reckon with new and complex considerations as they weigh how—or even whether—to continue to pursue core aspects of their IE&D programming,” Jeanine Conley Daves, a member of Littler’s inclusion, equity, and diversity consulting practice, said in an emailed statement. “Despite the increased scrutiny, many companies seem to be taking a measured approach, rather than rushing to end or scale back IE&D efforts. Leaders are looking for ways to balance legal risks with the value such programs provide to their workforces and company cultures.”

Trump signed a pair of executive orders Jan. 20 and 21 targeting diversity, equity, inclusion, and accessibility programs that call for eliminating DEI efforts from federal agencies, canceling contracts and grant funding for entities with discriminatory or equity-related programs, and identifying private-sector targets for civil investigations that are deemed to be the “most egregious” operators of biased DEI programs. Attorney General Pam Bondi subsequently tasked Justice Department staff with developing enforcement plans that also could include criminal investigations.

A federal judge in Baltimore blocked parts of Trump’s anti-DEI orders from taking effect in a Feb. 21 preliminary injunction, agreeing with challengers who said the orders were unconstitutionally vague and violated their First Amendment rights.

The Littler survey also asked more than 300 C-suite executives about their responses to anti-DEI pressures over the past year. Roughly a quarter of them said their organizations had scaled back their programs in 2024, while 76% said they maintained or increased their DEI efforts during that time.

Well-known corporate brands including Alphabet Inc.'s Google, Amazon.com Inc., Walmart Inc., and The Walt Disney Co. have backed away from DEI language and diversity goals amid growing public and legal scrutiny. Meanwhile others including Netflix Inc. and McCormick & Co. have reiterated their diversity commitments in shareholder filings following the issuance of Trump’s executive orders.