A new report from Littler, released on February 26, reveals that only 8% of C-suite executives are seriously contemplating changes to their diversity, equity, and inclusion (DEI) programs following President Donald Trump's executive orders aimed at targeting DEI efforts. The survey indicates that, for the most part, leaders are waiting to see how things unfold before making any major adjustments.

According to the survey, 53% of C-suite leaders expressed concern that the current administration's policies and rhetoric would likely lead to a decrease in corporate DEI initiatives by 2025. This marks a significant 15-point rise from pre-inauguration responses. Meanwhile, 47% of respondents believe that DEI commitments will either stay the same or increase over the same period.

However, despite this outlook, more than half of the executives surveyed indicated they are concerned about the potential legal risks associated with DEI programs, including the possibility of lawsuits, government enforcement actions, and shareholder proposals.

Such concerns appear to be grounded in reality. Companies such as Target, Costco, and John Deere have already faced shareholder scrutiny on the DEI front, with some investors calling for the removal of DEI-related programs.

Additionally, a group of Republican attorneys general recently sent a formal letter to Costco, urging the company to discontinue its DEI initiatives within 30 days, following the company's board's refusal to act on a shareholder proposal. This proposal had called for a report to evaluate the risks posed by the company's DEI programs.

In terms of internal DEI strategies, Littler’s survey found that only 22% of executives are considering eliminating DEI-focused roles, while 28% are contemplating scaling back employee resource groups (ERGs).

Among those contemplating reductions in DEI efforts, over half (52%) said they are particularly focused on eliminating DEI benchmarks and metrics, partly to avoid any potential perceptions of quotas — a concept the Trump administration has vocally opposed. Several companies, including Google, have already taken steps to remove such metrics from their DEI strategies.

“The letter of the law” regarding DEI “remains unchanged,” said Kate Mrkonich Wilson, a shareholder at Littler and a member of the firm's IE&D consulting practice. However, she added that the risk of legal challenges has been “amplified” due to the Trump administration’s regulatory stance on DEI.

Wilson stressed that it is now more critical than ever for private employers to review their DEI practices for any possible vulnerabilities, in order to ensure compliance with longstanding anti-discrimination laws.

Originally reported by Kathryn Moody in Construction Dive.