L. Iržikevičienė: Will changes in the U.S. prompt a review of Diversity and Inclusion policies?
In recent years, companies have been actively strengthening diversity, equality, and inclusion. Non-discriminatory management is one of the key components of sustainability, or ESG, strategies that an increasing number of companies are adopting. However, a contrary trend is already being observed in the United States—many large corporations are narrowing their diversity, equity, and inclusion (DEI) policies and withdrawing from initiatives promoting these rights.
U.S. companies are stepping back
This year, several major U.S. corporations announced they would cease supporting events promoting equality and diversity and are changing their inclusion policies. Companies such as automakers Ford and Toyota, agricultural machinery producer John Deere, motorcycle manufacturer Harley-Davidson, home improvement retail chain Lowe’s, and Brown-Forman, the maker of the globally renowned Jack Daniel’s whiskey, have reported these changes.
Company executives justify their decisions as a means to mitigate rising risks, particularly in light of increasing litigation concerning DEI policies. Many companies began reviewing their diversity programs following last year’s Supreme Court ruling, which stated that race cannot be a selection criterion for university admissions and required Harvard and other universities to seek alternative ways to ensure student diversity.
Companies announcing changes to their inclusion and diversity policies claim they will focus on activities ensuring non-discrimination in the workplace while abandoning active diversity promotion programs and public initiatives.
These companies have also withdrawn from the Corporate Equality Index, which is compiled annually by the non-governmental organization Human Rights Campaign. The most recent report evaluated 1,384 U.S. companies on how their policies and practices ensure inclusion for LGBTQ individuals.
The narrowing or even abandonment of inclusion and diversity policies in the U.S. is further driven by emerging conservative trends in society. Following recent elections, such tendencies may intensify, making the future of DEI policies not just a matter of social sensitivity but also a business risk factor. Companies are carefully considering this and increasingly opting for cautious withdrawal strategies.
Europe still promotes diversity
In Europe, the situation remains different. Western countries, the Baltics, and the Nordic region continue to actively promote diversity and inclusion, with DEI policy strengthening seen as a hallmark of progressiveness for both companies and society.
For example, in Finland, diversity and inclusion are approached practically, aiming to create an environment where every employee at the table is heard and respected, regardless of their personality traits, social skills, or communication style.
A recent internal study conducted by OP Corporate Bank showed that our organization’s employees value the opportunity to report workplace discrimination or bullying. Almost everyone in our Lithuanian branch knows how to do so, with this indicator scoring 4.59 out of a possible 5.
Moreover, employees consider it important that minority treatment does not differ from that of other employees (4.65), that gender equality is ensured (4.63), and that there is no age-based discrimination (4.53). They expect to work in an environment where respect for everyone is part of the organizational culture.
We believe this approach enhances employee satisfaction and loyalty while helping companies build an inclusive workplace and increase competitiveness.
Leaders are expected to actively support DEI
We are accustomed to leaders actively supporting and promoting inclusion and diversity. They typically serve as role models and organizational values ambassadors, whose leadership should inspire others.
Our research indicates that employees expect leaders to actively promote equality practices and address inappropriate behavior, discrimination, or unethical actions in the workplace. For instance, nearly all employees in our organization expect leaders to foster diversity, equality, and inclusion (4.52) and to prevent inappropriate behavior or speech (4.08).
In Lithuania and across Europe, we are expanding inclusion and diversity policies beyond company walls by carefully selecting suppliers and partners and encouraging them to adopt DEI policies. We also eagerly engage in organizations promoting sustainability and ESG values, continuously deepening our knowledge through the many conferences available.
Will we have to choose in the future?
U.S. companies are withdrawing from many diversity promotion initiatives and returning to corporate norms of decades past when diversity, equality, and inclusion were unheard of.
Management trends from the U.S. often influence Europe. These recent precedents suggest we may eventually reach a point where we must reassess what truly matters to us: Which DEI goals will we continue to pursue, and which might we abandon?
Regional and cultural differences also play a role. I cannot imagine, for instance, that Finland or the Nordic countries would abandon diversity and inclusion values, as these principles have become part of their national identity over many decades.
In Lithuania, have we come far enough on the path of equality and diversity to resist stopping or turning back? If faced with a choice, will companies opt to retreat, or will they persist in their diversity journey? Or perhaps, under these circumstances, some companies will never embark on this journey at all?
I firmly believe that such questions will not arise for our OP Group. On the contrary, in the coming year, we will review our diversity and inclusion policy to identify ways to strengthen it further.
Nevertheless, in the near future, businesses will likely need to strike a balance between societal trends, employee expectations, and company values.