Navigating the DEI Minefield: How UK Businesses Should Think About Approaching External Communications

You would be forgiven for thinking the age of DEI (Diversity, Equity and Inclusion) is over. We are constantly bombarded with headlines highlighting President Trump’s war on diversity – whether that is freezing federal research funding to universities over allegations of racial discrimination hiring, or the U.S. Department of Justice issuing new guidelines barring federal funding recipients from participating in DE&I programmes.

Closer to home here in the UK, however, there have been a number of actions taken to support diversity and inclusion efforts, such as the UK government’s proposal to ban NDAs from being used by bosses to silence employees subjected to abuse, and its consultation on disability and ethnicity pay gap reporting, similar to the mandatory gender pay gap reporting requirements for large employers which has been in place since 2017.

That said, due to mounting political pressures and fears of potential backlash, navigating the current DEI landscape has become increasingly complex for UK businesses. As a result, many organisations have scaled back their communications, both internally and externally.

Though the current landscape remains unclear, one thing is certain: organisations that align on their DEI commitments and communicate these effectively with their employees build trust, credibility and a sense of belonging in what continues to be an uncertain world. Only once firms have a clear plan in place should they consider their external profile, taking a measured and authentic approach that aligns with ongoing business priorities.

Why diversity matters

In reality, diversity is good for business. Research shows that companies with diverse leadership teams continue to be associated with higher financial returns. Additional studies show that DEI is positively associated with long-term market valuation and innovation, suggesting that DEI initiatives can be of strategic importance for organisations.

Put simply, diverse teams can boost creativity and innovation, bringing together a wider range of perspectives and approaches to avoid groupthink.

From a talent management perspective, inclusive hiring practices allow firms to access a broader talent pool focused on skills and potential. More broadly, businesses that are known for their commitment to diversity and inclusion are more likely to attract top talent.

A diverse workforce also allows you to better service a wider range of clients. Take the wealth management industry – according to the Centre for Economic and Business Research, women are expected to hold 60% of the UK’s wealth in 2025, yet the managers who serve them are overwhelming male. With 69% of women preferring to work with a female financial adviser, wealth managers who invest in diversifying their advisers will reap the benefits of the well-documented ‘Great Wealth Transfer’ that is underway currently.

Weathering the storm: the importance of internal communications

UK businesses, faced with increased political pressures from the US, may have considered scaling back their DEI commitments to avoid controversy. But scaling back could be just as – if not more – harmful to the prosperity of a business, as it has the potential to erode employee trust and retention, as well as business performance.

Staying the course in times of uncertainty offers employees a sense of trust and belonging, reinforcing company values and demonstrating commitment to creating an inclusive workforce.

For some organisations, especially those with global operations, there may be a need to rename the DEI function to navigate political backlash. But this does not mean that the company’s core values need to change. To build employee trust, it is crucial that a firm’s commitments to DEI are clearly communicated to all employees to reinforce a culture of accountability and transparency.

That said, if commitments do need to be updated, ensuring a clear and consistent narrative is vital. It must address employee concerns and demonstrate that the business is still committed to creating an inclusive environment for all with tangible examples.

Don’t jump the gun: thinking through external communications

Before considering external communications, firms must ensure alignment on internal communications so that employees are aware of all policies before anything is made public to an external audience. The last thing you want is news about a change in DEI function name to be published on Bloomberg before your employees have been updated.

Once firms have their internal DEI ducks in a row, they should consider their external profile on the topic. Leaders must ask themselves, does the company website need to be updated with new function names, reporting or language? Do our leaders need to update their social channels? Did the firm speak regularly on DEI-related topics to the media or on social media before the current backlash?

Taking a thoughtful and measured approach to external communications is critical – there is no need to start banging the DEI drum if you’ve never done so previously. Though if your organisation used to regularly post on socials about DEI-related topics, you may want to consider reengaging if you have been on a hiatus.

DEI is under the microscope at present, with eagle-eyed journalists tracking DEI updates on company websites and social media to stay ahead of a topic that so few firms are willing to address publicly.

Something as seemingly inconsequential as updating the company logo to support Pride or Black History Month can go a long way in demonstrating to new and existing talent a focus on inclusiveness for all – and in fact, a number of ‘magic circle’ law firms made UK headlines in June for abandoning their Pride logos following President Trump’s attacks on DEI.

As such, making sure you have solid media statements in place to address any inbound questions concerning your DEI commitments is crucial.

How to approach external communications

There is no one-size-fits-all approach to addressing DEI, but being clear and consistent in your messaging is critical. Before updating externally facing materials or restarting conversations around DEI with the media or via social channels, you should consider the following:

• Is the business aligned on its approach to DEI? – Do not update external facing materials (e.g., website) or speak publicly if you are not aligned internally on your approach to DEI.
• Have your employees been made aware of any updates? – Ensuring your number one stakeholders are informed is paramount before going public to preserve trust.
• Put protections in place – Have pre-approved statements ready to share with the media on the company’s approach to DEI should you receive any inbound requests for comment, especially if things have shifted internally.
• Audit your peers – What are they saying, and how are they appearing in the media and on social channels? This may help guide your approach to what you say externally.
• Develop a communications strategy aligned to business priorities – Should you decide to take a proactive approach to external communications, ensure the firm understands the potential risks associated with discussing this topic publicly, mapping out who is allowed to speak to DEI externally, what your key messages are, the DEI topics you want to address, ‘safe’ media with which to engage, and a social content calendar to provide structure to your communications.

For businesses considering their DEI options, Prosek is able to support firms as they navigate this minefield, providing senior counsel, competitor audits, internal communications guidance, scenario planning mapping out the pros and cons of any proposed approaches, as well as external communications strategies.

Looking ahead, we suggest firms get on the front foot now and align on their DEI commitments to build trust, credibility and inclusion to remain competitive in an unpredictable world.