President Trump’s attacks on corporate diversity, equity, and inclusion (DEI) initiatives have sparked serious debate and concerns amongst those of us who have championed workplace and wider societal equality over decades.  However, research overwhelmingly shows that DEI is not just socially responsible, it’s a business necessity.

I was approached by a FT journalist to respond to a series of questions on this topic and share my thoughts with you in this blog, especially as we celebrate International Women’s Day 2025 with the theme of ‘Accelerating Action’.

How much of a problem could Trump’s anti-DEI stance be for employees and companies in the UK and elsewhere?

While Trump’s policies directly affect US firms, their impact will be felt globally.  The saying “When America sneezes, the rest of the world catches a cold” was first use at a time when global economic system were less integrated than now, so the impact is bigger today than in the past.   Many UK and European financial institutions operate in the US and may feel compelled to align with shifting American policies to maintain compliance, investor relations and keep in with Trump’s administration.

Right-wing movements in the UK and elsewhere are taking cues from Trump’s government and his political discourse.  What happens across the pond does have a ripple effect in the UK and Europe but for the time being UK regulators, politicians and businesses remain committed to diversity, equality and inclusion.

• UK Financial Regulation & DEI:
  • The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have set diversity disclosure requirements for financial firms.
  • The FCA’s 2023 review of 241 financial services firms found that only 5% of FTSE 100 financial services companies had an ethnic minority CEO, pushing for the need for this to improve and continued DEI efforts.
• European DEI Trends:
  • The EU Corporate Sustainability Reporting Directive (CSRD) which came into effect in 2024, requires companies to report DEI metrics, reinforcing the need for diversity initiatives.

Given these regulatory requirements UK firms that weaken DEI efforts could face compliance risks.  If politicians in the UK feel pressured by the rise of right-wing support for the Reform Party, they could start watering down DEI requirements and initiatives.  But for now, overall commitment remains strong in terms of promoting fairness, equality and opportunities as business, social and regulatory imperatives.

Have financial firms in the UK changed their approach to DEI recently?

It is worth noting DEI trends and data prior to Trump winning office four months ago.

• • 2023 McKinsey report:  found that companies in the top quartile for gender diversity on executive teams were 25% more likely to outperform on profitability.
  • Diversity at senior levels remains a challenge: Women hold only 35% of senior leadership roles in UK financial firms, despite being nearly 50% of the workforce.
  • According to a report sponsored by Lloyds Banking Group and the consultancy KPMG on 25 Feb 2025, women occupy more than 2 in 5 seats on the boards of Britain’s biggest listed companies after further progress was made last year, but the number of female FTSE 100 chief executives dipped to fewer than 10.
  • According to the government-backed annual FTSE Women Leaders Review, the proportion of board positions held by women at FTSE 350 companies rose to a new all-time high of 43.4% last year, up from 42.1% in 2023.  Among the 100 biggest listed companies, the proportion of women in the boardroom was even higher, at 44.7% versus 42.6% in 2023.
  • Ethnic diversity remains dire: with Black professionals representing less than 1% of senior roles in UK banking.

I started in the City of London in 1996, and as a vocal campaigner for equality, fairness, transparency and greater consumer protection rather than the ‘caveat emptor’ (buyer beware) approach, progress has been made on all counts; albeit not nearly enough.  Trump and Musk’s policy agenda is likely to give firms dragging their feet on DEI the excuse to be less vocal about DEI as the political mood continues to shift.  BUT – they will find it difficult to roll back initiatives, and there is little empirical evidence for doing so.

Should women and ethnic minorities working in financial firms be more worried about their position?

From my near 30 years’ experience in the financial sector, women and ethnic minorities have always looked over their shoulders and been cautious about security of tenure of their positions. And there will be an even deeper sense of insecurity as it is difficult to ignore what is happening in the US and the threat it contaminates workplaces, society and culture in the UK.

However, I feel confident that financial firms in the UK are unlikely to dismantle DEI programs entirely.  I do worry that underrepresented employees may face slower career progression if DEI commitments lose momentum. For example, ongoing promotion and pay gap concerns could deepen as women in financial services still earn 22% less than men on average[1], with ethnic minority employees face a pay gap of 23% compared to white colleagues in UK finance[2].

Without DEI initiatives embedded in corporate strategies and structures, disparities in career progression may not only persist, but could deepen. Employees and campaigners from underrepresented backgrounds must be alert to the dangers emanating for the US by remaining proactive in pushing for transparency and accountability transparency in their firms’ diversity commitments. Especially as clients expect it from Firms.

By how much could Trump’s actions set back advancements in this area?

Trump’s actions are likely to significantly slow DEI progress, especially in the US, and it could have a chilling effect across global sectors and markets.  However, the hardnosed business case for DEI remains undeniable:

• • Financial performance & diversity: A Boston Consulting Group (BCG) study found that companies with above-average diversity on management teams report 19% higher revenue from innovation.
  • A 2020 McKinsey study found that firms in the top quartile for ethnic diversity were 36% more likely to outperform on profitability.
  • Talent acquisition:  76% of job seekers consider workplace diversity an important factor when considering which companies to work for[3].
  • Staff retention:  companies with strong DEI programs have 35% lower turnover rates, reducing recruitment costs[4].

In my view, especially looking at the data, rolling back DEI efforts would not just be an ethical misstep, it would be a poor business decision that could hurt financial firms’ bottom lines.

The real risk isn’t that DEI will be dismantled straight away, but that firms will start to deprioritise it, leading to even slower progress and therefore widening inequalities.  I would implore financial firms, all businesses, to stay committed and ensure that DEI remains embedded in their business strategy, not just as a compliance obligation but as a driver of long-term success.

Conclusion: Defending DEI is a Business, Social and Cultural Imperative

Trump’s rhetoric may embolden opposition to DEI, but the financial sector cannot afford to abandon diversity efforts. The data clearly shows that diverse teams drive better financial performance, risk management, and talent retention.

In an even wider context, Diversity, Equity, and Inclusion (DEI) are not just ethical principles – they are essential for business success, social progress, and cultural evolution. In our rapidly changing world, companies that prioritise DEI can drive innovation, enhance decision-making, and outperform competitors by leveraging diverse perspectives and mindsets.

Socially, DEI fosters fairness, representation, and opportunities for all, strengthening communities and reducing systemic inequalities. Culturally, embracing DEI enriches creativity, broadens understanding, and ensures that institutions reflect the diverse societies they serve. In my view and experience, promoting DEI is not optional, it is a fundamental tool for achieving sustainable growth, resilience, and a more just future.  As women we need to come together, speak out and stand up to those trying to roll back the progress made and still to be made – we must act to accelerate action!

Gina Miller – Founder of MoneyShe, businesswomen and social justice campaigner

[1] PwC, 2023

[2] ONS, 2023

[3] Glassdoor, 2023

[4] Deloitte, 2022