US Businesses Urged to Uphold Human Rights and DEI Principles Amid Policy Changes

On January 21, 2025, the new U.S. administration enacted Executive Order 14173, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity."

In light of recent policy shifts by the United States government, businesses across the nation must reaffirm their commitment to human rights and to the principles of diversity, equity, and inclusion (DEI) in the workplace, UN experts stated today.

"Now more than ever, businesses must uphold their responsibility to respect human rights, maintain resilience in fostering inclusive and safe workplaces, and adhere to international human rights laws and standards, regardless of political and governmental changes," the experts emphasized in a joint statement.

On January 21, 2025, the new U.S. administration enacted Executive Order 14173, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity." The order eliminates affirmative action policies and directs all federal agencies, employers, contractors, and subcontractors to cease DEI-related initiatives. Furthermore, it "encourages" private sector businesses to align with these changes, raising serious human rights concerns, particularly for marginalized communities.

"We are profoundly troubled by this sweeping attack on DEI programs, which the Executive Order deems as ‘dangerous, demeaning, and immoral race and sex-based preferences.’ Such language and directives significantly increase human rights risks, particularly for LGBTI+ individuals and other vulnerable groups," the experts warned.

Adding to these concerns, a U.S. Department of Justice memo, issued on February 5, 2025, titled "Ending Illegal DEI and DEIA Discrimination Preferences," mandates a report to the Associate Attorney General by March 1, 2025, recommending measures to dismantle DEI policies. It also directs the Civil Rights Division to investigate and penalize "illegal DEI practices" in the private sector and federally funded educational institutions.

Experts have cautioned that these measures not only violate the State’s duty to prevent discrimination but also threaten to reverse significant progress in fostering inclusive and safe workplaces. The chilling effect on individuals, organizations, and businesses striving for anti-discrimination initiatives could be profound, they warned.

Beyond human rights concerns, dismantling DEI initiatives could deepen structural inequalities and discrimination—issues that civil society and the business community have long fought to address. Moreover, DEI programs are not just a moral imperative but also a strategic business advantage. Studies have consistently shown that diverse and inclusive workplaces drive innovation, enhance productivity, and improve economic outcomes.

According to the UN Guiding Principles on Business and Human Rights, companies bear a responsibility to uphold human rights regardless of the State’s stance on such issues. This responsibility exists beyond mere compliance with national laws and regulations.

"During these challenging times, we encourage businesses to actively engage with civil society, particularly LGBTI+ groups and human rights advocates, and to collaborate with industry peers to drive positive change," the experts advised.

As businesses navigate the evolving regulatory landscape, many face a critical choice: whether to align with the new federal directives or continue fostering workplace diversity and inclusion based on internationally recognized human rights standards. The coming months will reveal the extent to which corporate America chooses to stand by its DEI commitments in the face of mounting challenges.