Diversity in Distress: What Does the DEI 
Executive Order Mean for You?

On January 21st, 2025, President Trump signed into effect Executive Order 14137. And with a title like “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” it’s not hard to see why this DEI executive order has been so polarizing.

But we’re not here to discuss politics. The fact of the matter is that as U.S.-based employers and employees, you’ve been handed a difficult situation. And we’re here to help you handle it with grace. Here’s what you can expect from this article:

• High-level overview of Executive Order 14137 & its effects
• Impact of removing DEI initiatives from the workplace
• How to ensure workplace safety without regulations

What Is the DEI Executive Order 14137?

Generally speaking, executive orders are written, signed, and published directives by the current head of the United States, that manage the operations of the federal government and its agencies. Remember that last part, it’s going to be important. 

Executive Order 14137 targets and cuts back on federal DEIA programs. As we’ll discuss in detail, it updated and removed several past directives from the Biden Era and beyond that were meant to lift up underrepresented minority groups in the workplace.

What Is DEI?
DEI is an acronym for Diversity, Equity, and Inclusion. DEIA is an alternative, where the “A” stands for Access to equal opportunities. DEI in the workplace is a framework that seeks to promote representation and fair treatment of all individuals equally. 

This controversial decision comes on the back of President Trump’s claims that these initiatives prioritized aspects of the job-seekers’ identity over their actual merit and resulted in less diverse, better-qualified Americans being overlooked in hiring.

It’s also important to note that this is just the latest of the anti-DEI executive orders, but not the only one. For the full context, please consider the following documents: 

What Does Executive Order 14137 Actually Do?

Like other presidential mandates of its kind, this latest DEI executive order consists of several stand-alone points. To help make sense of it all, here’s a quick overview of its most important provisions, as well as details on the revoked policies. This includes: 

1. OFCCP Restructuring: President Trump has directed the Office of Federal Contract Compliance Programs to stop promoting diversity programs, affirmative action obligations, and workplace demographic balancing.
    
2. Modified Federal Contracting: Executive Order 14137 reinforces the historical anti-discrimination laws and orders that all contracts and grants feature clauses that avoid DEI programs that may prioritize based on personal characteristics.
    
3. Investigating the Public Sector: Instructs federal agencies to identify and potentially investigate private entities with likely “discriminatory DEI practices,” such as publicly traded companies, non-profits, and other institutions.
    
4. Targeting Education Access: Ordered the Attorney General and Secretary of Education to ensure compliance with the Supreme Court decision in Students for Fair Admissions v. Harvard, emphasizing merit-based admissions.

What Policies Did the DEI Executive Order Affect & How? 

What Do Trump’s Executive Orders Mean for Companies?

As we mentioned, Executive Order 14137 primarily focuses on US federal agencies, their contractors, and subcontractors. So, if you’re none of those things, we’ve got good news! The new mandates may not affect your company at all. However…

This directive also puts businesses, non-profits, and educational institutions that received DEI grants under more scrutiny. Biden’s administration reportedly spent $1bn on affirmative action across numerous entities, and as such, this may concern you.

So, what could be the Trump DEI executive order impact for your company?

• Cut Funding: To receive federal grants, businesses must now prove and receive certification that they do not operate any DEI programs that violate current anti-discrimination laws. Otherwise, funding may be paused or outright revoked.
   
• Potential Litigation: If any organization is found to favor a particular group over another in its hiring or admissions process, it may be subject to litigation, fines, and potential prison sentences. Even if it is for the purpose of affirmative action.

What Does the DEI Executive Order Mean for Employees?

There are many reasons that led businesses to adopt affirmative action programs. The financial incentives were one thing, but diversified companies also outperform their less inclusive competitors 35% of the time and are 70% more likely to capture new markets.

However, that’s not what employees care about. DEI initiatives help foster safer workplaces where everyone can thrive, rather than just survive. Naturally, this makes employees happier, which in turn creates more productive teams with lower churn rates.

So, how does the impact of the DEI executive order your employees?

• Less Diverse Teams: By removing incentives and banning identity-based hiring quotas, Trump’s administration may invite biases back into the process, resulting in less diversity and a lower sense of belonging for underrepresented workers.
   
• Fewer Checks & Balances: Due to the restructuring and dissolving of DEI-focused agencies, employees may feel deprived of safe communication channels where they can report workplace misconduct and discrimination.

How to Handle the White House’s Directives in the Public Sector?

We’ll discuss what you can do to improve your organization in spite of Executive Order 14137 soon. But first, let’s say you’re happy enough to just adapt to and comply with these new anti-discrimination laws. Here’s what you should do (ASAP):

1. Review Current Company Policies: Revisit your Harassment Prevention and DEI guidelines to ensure they do not contradict the law in any way. Focus on communicating a culture of complete equality and meritocracy above all else.
    
2. Consult Your Legal Team: In some situations, local and state legislatures may contradict each other in unsuspecting ways. It is necessary that you understand which takes precedence and that you are compliant with regulations all the way.
    
3. Stay in the Know & Prepared: Because the topic is such a hot-button issue, it is possible changes may be made at any time. Make sure you keep up with relevant updates and train your managerial staff to handle any complex issues.

H2: Whistleblowing as the Pillar of New DEI Strategies?

Now, given the current policies of Trump’s administration, where are you supposed to look for safeguards to protect the interests of both your company and employees? Well, as it turns out, only one place to look in the absence of responsible 3rd parties. Inward.

Businesses operating within the U.S. are already legally obliged to allow and even encourage whistleblowing by guaranteeing employees’ safety from any retaliation and giving them sufficient access to tools, through which they can voice their concerns.

But in this legal climate, whistleblowing is much more than a regulatory requirement. It is the best way of discovering misconduct early, addressing issues, increasing satisfaction, preventing churn, and attracting diverse talent. Plain and simple, it is good business.

Unfortunately, since the U.S’s whistleblowing laws only focus on contractors and publicly traded companies, many smaller organizations lack the necessary tools and frameworks to seamlessly switch to an internal DEI system on a moment’s notice.

How FaceUp Helps Ensure a Safe Workplace

FaceUp is the All-in-One Platform for Whistleblowing and Employee Engagement. So, suffice it to say that staff safety and satisfaction are both in our blood and company DNA. And here’s how we can help you create a better working/learning environment:

• Customization First: Organizations, like people, have a wide range of needs and wants. FaceUp was made with this fact in mind. Go out-the-box, or create a fully custom experience that’s uniquely yours from color to specific use cases.
   
• Survey Selection: Discover, track, and discuss your employees’ biggest issues the easy way. Start with a template, or build your own, and get timely feedback by scheduling and sending out surveys automatically. It really is that easy.
   
• Ensured Anonymity: Overcome whistleblowing anxiety by guaranteeing employees complete safety. Whether they reach out via a form, message, or our voice-altering hotline – you’ll only ever know the case number and nothing more.
   
• End-to-End Encryption: You should never risk your most sensitive information. And thanks to FaceUp’s globally distributed and encrypted AWS data centers, you don’t have to. What’s supposed to stay internal will stay internal. Always.

“That’s great, but how does that help?” I’m so happy you asked, hypothetical reader. FaceUp’s flexibility as a platform, combined with our 3,000+ integrations lets you keep whistleblowing in the public eye while avoiding any personally-identifiable data.

This kills reluctance and stops staff from forgetting that they have an open channel to you whenever they need it. Furthermore, with pulse surveys, you can actively seek out feedback, rather than just waiting, hoping, and reacting, when it may already be too late.

Conclusion: DEI Is in Your Hands

Laws change. But the human need for safety and a sense of belonging do not. In the current political climate, you have a shared responsibility in ensuring that everyone gets a fair chance. And in return, you get a happier, loyal, and more productive workforce. 

Whistleblowing helps your employees communicate issues you may not see otherwise, protects them from misconduct and microaggressions, and protects you from any potential fraudulent lawsuits. DEI is in your hands. So, handle it with care.