In light of President Donald J. Trump’s recent executive orders, private businesses should examine their diversity, equity and inclusion (DEI) policies and practices and formulate a plan of action—change policy, reaffirm a commitment to DEI (amended or not), or wait and see.

While Trump’s Jan. 21, 2025, Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (the order), focuses mainly on government agencies and contractors, it also directs federal agencies to scrutinize “illegal DEI preferences, mandates, policies, programs and activities” in the private sector as well.

The plain text of the order makes this conclusion inescapable, as it:

• Directs all agencies to “enforce our longstanding civil rights laws and to combat illegal private-sector DEI preferences, mandates, policies, programs and activities.”

• Instructs the Attorney General and the director of the Office of Management and Budget to submit within 120 days a report containing recommendations for enforcing federal civil rights laws and “taking other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.”

...

To read this full article, download PDF.