Companies in the private sector are reassessing their diversity, equity and inclusion strategies in light of President Donald Trump’s approved executive orders seeking to reverse to DE&I policies previously adopted under prior administrations, particularly within the federal government.

In the private sector, the changes are prompting companies to reassess their approaches to DE&I; while some organizations have disassociated themselves from the DE&I discussion, others remain committed, embedding diversity in their business makeup, embracing skills-based hiring, economic equality and broader inclusive initiatives.

SIA’s recently released report, Impact of Federal Government Actions on DE&I 2025, provides a high-level view of the shift in demographics of the US labor force as well as the disparities that still exist and could be exacerbated as a result of recent developments. Written by SIA Research Analyst Francesca Profeta and Timothy J. Szuhaj, SIA’s legal research analyst for the Americas, the report includes the business case for DE&I based on SIA and third-party evidence justifying DE&I in the workplace as well as the counterreactions and counterarguments that have been made against DE&I.

Executive Orders

On Jan. 20, Trump signed two DE&I-related executive orders titled “Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government” and “Ending Radical and Wasteful Government DEI Programs and Preferencing.”

The next day, he signed an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”

On Jan. 22, the White House issued specific guidance regarding the Jan. 21 order. The guidance states that the intent of the executive order is to “protect the civil rights of all Americans and expands individual opportunity by terminating radical DEI preferencing in federal contracting and directing federal agencies to relentlessly combat private sector discrimination.”

The guidance further states that “[t]his comprehensive order is the most important federal civil rights measure in decades: It terminates ‘diversity, equity, and inclusion’… discrimination in the federal workforce, and in federal contracting and spending. Federal hiring, promotions, and performance reviews will reward individual initiative, skills, performance, and hard work and not, under any circumstances, DEI-related factors, goals, policies, mandates, or requirements.”

The order also requires the Office of Management and Budget (OMB ) “to streamline the federal contracting process to enhance speed and efficiency, reduce costs, and require Federal contractors and subcontractors to comply with our civil rights laws.” Lastly, the guidance “directs all departments and agencies to take strong action to end private sector DEI discrimination, including civil compliance investigations.” It revokes Executive Order 11246 contracting criteria mandating affirmative action. EO 11246 was issued by President Lyndon Johnson in 1965.

“The wide-sweeping EOs face a number of court challenges and, accordingly, the legal and pollical basis for DE&I are shifting rapidly,” according to the SIA report.

“Whichever approach organizations choose to take, they should prioritize clear, thoughtful communication and align their initiatives with both regulatory requirements and the long-term workforce needs of the business,” it states. “By doing so, they can continue to foster inclusive workplaces while mitigating risks in an evolving landscape.”

The full report is available online to SIA corporate and CWS Council members.