by Volkswagen changes its approach to DEI due to pressure from the Trump administration
After the successful boycott of Bud Light, many companies, including automakers, began reviewing their diversity, equity, and inclusion (DEI) programs. Now, with Trump’s return to the White House, pressure on corporations is increasing. For example, Verizon abandoned DEI policies to gain approval for its Frontier acquisition deal.
According to Handelsblatt, Volkswagen is also adjusting its DEI strategy. The company will no longer include US data in global diversity calculations. Previously, executive bonuses were partially tied to achieving DEI goals, such as increasing the share of women in top management to 20.2% by 2025.
In January, the Trump administration signed an executive order to protect “the civil rights of all Americans” and combat “radical DEI practices” in government procurement.
European companies have received indirect signals from US embassies to discontinue DEI programs. The US government believes that 60 years after the Civil Rights Act, many institutions, including corporations and universities, have abused the concept of DEI by introducing discriminatory practices.
These changes are occurring against the backdrop of a broader business trend where companies are trying to adapt to the political climate. Volkswagen, like other global players, is forced to balance corporate values with external challenges. Meanwhile, critics argue that abandoning DEI could impact corporate culture and the social responsibility of brands.
