Dismantling Diversity: How Trump's Anti-DEI and Anti-Trans Policies Impact Business Growth

A transgender rights advocate proudly displays a flag at the Trans Day of Visibility rally on March 31, 2025, at the National Mall in Washington, DC. By Matteo Winkler and Marcelle A. Laliberté, HEC Paris Business School In recent months, U.S. diversity, equity, and inclusion (DEI) policies have shifted dramatically, with significant economic ramifications. Following Donald Trump's executive orders, federal agencies and private organizations face pressure to dismantle DEI initiatives, reframing them as “illegal and immoral.” This transition jeopardizes protections for the transgender community across healthcare, education, and the military, challenging multinational companies committed to inclusivity. Research reveals DEI is not just beneficial but essential for corporate performance and innovation. Organizations like the OECD highlight that inclusive practices enhance productivity, bolstering economic growth. As corporate values clash with ideological pressures, businesses must recognize that supporting DEI is crucial for sustainable success—discrimination will only stifle progress and undermine economic stability.