International Women’s Day next week will be marked against the backdrop of a new US administration committed to removing gender equity aspirations (amongst others) from its federal policy.
And corporations across the globe are tripping over themselves to follow suit – whether it’s Mark Zuckerberg lamenting the supposed lack of ‘masculine energy’ in the tech sector, major banks ending DEI initiatives, or the many other firms actively pivoting away from ‘ideals’ they held firm not even six months ago.
This ‘anti-DEI’ movement’ is unfolding despite the clear ethical and business value of diversity initiatives, which have the potential to unlock creativity, insight and value. Research from McKinsey has shown that executive teams in the top quartile for both gender and ethnic diversity are 9% more likely to outperform their peers, while those in the bottom are 66% less likely to outperform.
Nonetheless, the international tech community is now at a crossroads, with many companies unsure whether to follow the Trump administration or forge their own paths. For those who choose not to embroil themselves in this new ‘culture war’, there is a real opportunity to capitalise on this business value as well as to be an international champion for progress in the absence of strong leadership from the US.
Resurgence of the ‘Tech Bro’
For years, the technology sector has worked to free itself of accusations of being the preserve of ‘Tech Bro-ism’, with many companies building initiatives to encourage women and ethnic minorities into senior positions to diversify their corporate structure. And yet we are witnessing an unprecedented dismantling of this progress, and a backslide on corporate culture.
Trump’s culture war has moved from the White House to the mainstream, leading to instances like the now infamous Mark Zuckerberg interview on the Joe Rogan podcast and Meta’s recent shift to an ‘X’ style of moderation. And that’s without mentioning the ‘X’ CEO himself, Elon Musk, and his increasing involvement in US politics.
Many firms are already following the example set by the Trump administration, reducing or retiring any and all DEI initiatives – Amazon, Disney, Target, Deloitte (US) and Pepsi among them. And this is not just restricted to the US, with international organisations also dropping commitments to equity and inclusion in the hope of landing favourable business arrangements in the future.
It is clear that as the new administration took power, its priority was to dismantle programmes perceived to be ‘discriminating’ against white straight men – and many corporations have seemed all too willing to fold under Trump’s pressure, despite the progress still desperately needed.
“Served its Purpose”
Against this pushback, it’s worth restating the economic case for DEI initiatives – particularly in the context of profitability and a skills and productivity crisis. In the tech sector, women make up less than one third of the workforce. This is contrasted against more than 700,000 digital skills vacancies, according to research from Capgemini, in Europe alone.
Indeed, women are underrepresented at all levels in the tech sector, an issue particularly acute at C-Suite level. Now is not the time to act like underrepresentation and cultures of acceptance no longer need addressing. If anything, companies should be doubling down on active steps to promote and recruit more women working at the senior level.
There is a clear connection between imbalances at boardroom level and lower down in a business. Culture is set by those in senior leadership positions and trickles down through an organisation – as such, these issues need to be fixed from the top down rather than the bottom up.
In the midst of a skills crisis, with firms struggling to fill critical roles, the conversation should be about making it easier for women and those from underrepresented communities to join the tech sector. Training programmes and cultural changes which not only account for historical inequities but also address critical labour shortages in high growth verticals are needed. In the UK, a key part of solving the skills crisis will be to look at our entire population for potential and appeal to historically untapped labour pools to fill current gaps.
The Fork in the Road
While several firms have appeared all too willing to fold and follow the precedent set by the Trump Administration, there is still reason for hope. Firms such as Deloitte UK and Apple have forged their own path, restating commitments to their DEI initiatives and splitting from their US counterparts.
It’s certainly an interesting example for the UK to follow – with the ‘anti-DEI’ movement in full swing in the US, it becomes increasingly likely that they alienate a global talent pool, one which the UK could step up and attract.
With this in mind, it is even more alarming that many large businesses are backing away from DEI – it feels extremely short-sighted, ripping up years of progress in the workplace at the same time as sacrificing much needed economic gains.
With every crisis, however, there is opportunity – in this case, the opportunity for the UK to fully step away from the long tech shadow of the US. It isn’t good enough for firms to ‘go where the political winds take them’ – they need to stand firm and true to the values they hold. Here, the UK can set an example for businesses looking to take a different, progressive and more profitable path to those in the US.
