More than half of UK GCs say their organisation has revised its stances on diversity, equity, and inclusion (DEI) and environmental sustainability in the face of heavy criticism from the US, according to new research.
Of these, more than a quarter (28%) say that their organisation has made ‘wholesale changes’ to its stances, or abandoned them entirely.
The findings come from a report commissioned by UK firm Freeths, which surveyed 250 GCs and chief legal officers across the technology, retail, hospitality and leisure, energy, and public sectors.
The responses show how businesses’ commitments to DEI and environment, sustainability, and governance (ESG) initiatives have shifted since US President Donald Trump took office and begin targeting those initiatives.
This was a key takeaway from the survey, with 32% of businesses saying criticism from the new administration has led to discussions about potential changes, 26% disclosing that it has led to specific changes, and 28% saying it has led to wholesale changes or abandonment of their current stances.
The report also found that 83% of GCs believe that ‘doing the right thing’ is too often considered secondary to profit in business decision-making.
At the same time, the responses highlights that the approach to DEI and sustainability has not been completely stifled by the shift in the political landscape across the Atlantic, and conversations about these topics continue in the corporate environment.
More than half (58%) of survey respondents said they felt comfortable flagging concerns around ethical best practice, while 32% said they consult with senior leaders about ethical concerns on a weekly basis.
Additionally, 85% of businesses reported declining business due to ethical concerns.
Introducing the Corporate Conscience Index, Freeths senior partner Philippa Dempster said: ‘This report examines how businesses are approaching ethical decision-making today, where conscience meets commercial reality, and where the gaps remain.’
She continued: ‘The lesson is clear: legal tactics, business strategy, and professional influence must always deliver advantage with fairness. That is the standard to which we should all be held.’
There have been numerous examples of businesses aligning with the Trump administration, with nine law firms publicly cutting deals with the administration to roll back their DEI commitments and provide free legal advice to causes the administration supports.
Others, however, remain committed to their stances. NatWest in particular is highlighted in the report for embedding its ESG targets into its executive pay structure. Fifteen percent of the long-term incentives in the company’s performance share plan depend on delivering climate and sustainability outcomes.
