Client watch: Prospect’s call for accountability in Diversity, Equity, and Inclusion policies
When corporate responsibility is under intense scrutiny, as it currently is, it’s refreshing to see unions leading the charge to ensure that multinational companies operating in the UK live up to their diversity, equity, and inclusion (DEI) promises. Movement client Prospect, representing professionals in a variety of sectors including science, engineering, and public service, has recently penned a letter to the UK Parliament’s Women and Equalities Committee. This letter, issued this month (Feb 2025), raises critical concerns about the potential erosion of DEI standards in the workplace, particularly in light of recent policy shifts in the United States.
At the heart of the union’s argument is a pressing question: should businesses that profit in the UK be allowed to undermine their DEI commitments simply because of changes in American law? The letter, signed by Prospect’s leadership, highlights the growing influence of US-based multinationals operating in the UK, many of which are now facing political pressure to curtail or redefine their DEI initiatives in the wake of new laws introduced in the United States. With a notable rise in state-level legislation that directly challenges gender equality, LGBTQ+ rights, and anti-racism policies in the US, there is growing concern that companies might use these developments as an excuse to weaken their own DEI frameworks in other jurisdictions, including the UK.
The growing pressure from US laws
In recent months, US legislators have passed a range of controversial laws that restrict or outright prohibit the teaching of certain aspects of diversity, such as racial and gender equality, within schools and businesses. In some states, there has been an active attempt to roll back protections for LGBTQ+ individuals, particularly trans people, and restrict discussions surrounding race in the workplace. These laws, many of which are highly contentious, have the potential to set a dangerous precedent for companies that do business globally. And it’s here where Prospect’s concerns are particularly sharp.
The union’s letter to the Women and Equalities Committee is rooted in the belief that any attempts to weaken DEI policies in the UK—particularly for companies that operate across borders—would undermine years of progress made in fostering inclusive workplaces. In the UK, there has been a growing recognition of the importance of diversity, both for social justice reasons and for economic performance. Companies that champion inclusivity are not only seen as socially responsible but also more innovative and productive. The risk, according to Prospect, is that US multinationals may try to export a ‘race to the bottom’ mentality across their global operations, which could have a damaging ripple effect on UK workers.
The union has pointed out that many of these multinational firms are already deeply embedded in the UK, employing thousands of workers across a range of industries from tech to healthcare. Some of these companies have public-facing DEI pledges, which include commitments to increase the representation of women, ethnic minorities, and LGBTQ+ individuals in leadership roles, to offer equal pay for equal work, and to create workplaces free from discrimination. But there is growing concern that these commitments are little more than window dressing. With the shifting political landscape in the US, businesses might find it easier to adopt more conservative stances that clash with the UK’s own DEI goals.
Protecting UK workers from corporate retreat
Prospect is not alone in its alarm over the influence of US politics on UK workplaces. Advocacy groups, civil society organisations, and a wide spectrum of political figures have expressed concern that such global corporations might be emboldened to ‘scale back’ their DEI practices in the face of external pressures. In the union’s letter, they stress that the UK government must act to protect the integrity of its workplace equality laws, and ensure that corporate multinationals continue to be held accountable to the standards that have been built over decades.
For Prospect, this is not just about keeping up with the rhetoric of corporate social responsibility. It is about safeguarding tangible outcomes that affect the everyday experiences of workers. Their letter urges Parliament to consider the possibility that “weakening or abandoning DEI initiatives would not only reverse progress made in equality but would ultimately harm businesses, workers, and society as a whole.”
The union has also called for greater transparency in how companies report on their DEI initiatives, advocating for mandatory disclosures on workforce diversity, pay gaps, and how companies are addressing systemic inequalities. This is a crucial step in holding corporations accountable—not just to regulators but to the workers they employ. If multinationals were to backpedal on their DEI promises in response to US political pressure, workers in the UK deserve to know about it.
The road ahead: What needs to be done?
So, what can Parliament do to address these concerns and protect workers from the potential erosion of DEI standards? Prospect’s letter advocates for a legislative approach that reinforces the UK’s commitment to equality, while also making clear that businesses cannot use global political shifts as an excuse to scale back on their responsibilities.
First, Parliament must ensure that the Equality Act 2010 remains robust, and that businesses are held to account when they fail to meet their diversity obligations. The government should also make it clear that DEI is a core principle of good corporate governance, and that any company that operates in the UK will be expected to adhere to the nation’s high standards of fairness and inclusivity—regardless of the political environment elsewhere.
Second, the government must work closely with trade unions like Prospect, as well as civil society organisations, to create a clear framework for the future of DEI in the workplace. This means not only encouraging the private sector to maintain its commitments to diversity but also expanding those efforts into the public sector, where many of the most vulnerable workers are employed.
Prospect’s letter to Parliament serves as a timely and urgent reminder that diversity, equity, and inclusion are not just buzzwords—they are a vital part of the social and economic fabric of the UK. As global politics shifts, the UK must not allow itself to become complicit in the erosion of these hard-fought gains. The message is clear: the fight for equality in the workplace must remain steadfast, no matter the political winds that blow from across the Atlantic.
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