Diversity, equity and inclusion (“DEI”) initiatives have become integral to modern workplaces, promoting environments that benefit both employees and organisations. However, under the Trump administration, there has been a significant rollback of DEI policies, with President Trump trumpeting that these programmes encourage preferential treatment based on identity rather than individual ability. This has led to the dismantling of DEI efforts within the federal government, as well as impacting major corporations like McDonald’s, Target, Amazon and Meta. Despite this, companies such as Apple have voted to maintain their DEI policies, suggesting that the future of these initiatives isn’t completely dead on arrival (“DOA”). 

In Latin America, the rollback of DEI policies may not have the same far-reaching consequences, as DEI policies are generally less structured than in the US and Europe. According to a human capital management consultancy director, “It is too early to measure the impact of this trend as, in my view, it has not yet fully materialised.” While DEI initiatives in developed regions focus on diversity numbers and compliance, LatAm companies typically focus on community engagement, especially with disadvantaged groups such as Indigenous populations.  

“The issue of equality does not require having something special within the organisation. What is required is to apply the law in a transparent way,” explained the head of ESG at a steel company. In countries like Mexico, changes to DEI practices are primarily influenced by local regulations, with “workers themselves fighting hard for greater equality, for opening discussions.” While global trends may affect these companies, any shift in DEI policies must align with local laws and market demands. In Mexico, “the government is showing some commitment to improving labour practices, but change is slow and imperfect,” replied the ESG manager.  

“The government [in Mexico] is showing some commitment to improving labour practices, but change is slow and imperfect.”

Head of ESG at a steel company, Mexico

Moreover, companies risk reputational damage if they fail to meet basic legal requirements. “What should not happen is that corporations go below the legal framework,” emphasised the ESG manager. Given the pressures from international markets, LatAm businesses will likely continue adopting inclusive practices to meet global standards.  

The pushback of DEI policies in the US raises concerns among Latin American workers, as the director of a human capital management consultancy in Peru highlighted, “The US is a key reference point for Latin America.” If US policies continue to eliminate DEI efforts, Latin American minorities may see their opportunities for equality and equity diminished. Workers in the region may perceive DEI benefits, such as affirmative action and diversity quotas, as essential for ensuring fair access to opportunities. “The discussion may shift towards a concept of ‘equality’ that does not necessarily imply equity, which may blur the importance of specific measures to equalise access to opportunities,” stressed the consultancy director. 

“The US is a key reference point for Latin America... but as long as workers demand their rights, we’ll stay on the right track.”

Director of a human capital management consultancy, Peru

Despite these concerns, there is optimism that progress will continue. In Mexico, the government has shown some commitment to improving labour practices, though progress is stilted. “There is much to be done on gender issues,” the ESG manager explained, “but local markets and governments will likely continue pushing for improvements.” Latin American workers, particularly women, are increasingly vocal and “are advocating strongly for more spaces and more visibility for their contribution to the workplace,” our source validated. 

The erosion of DEI policies in the US could also have direct consequences for women, the LGBTQIA+ community, disabled workers and other minority groups in Latin American workplaces. Our sources acknowledged, “Without these supports, the barriers they already face will not only remain but could intensify, creating an even more hostile and exclusionary environment.” However, the ESG manager highlighted, “The problem with DEI policies is that the emphasis was put on the result - more gender representation, for example - without improving processes, without the change being really internalised.” 

Even though change is gradual, the ongoing push for equality and inclusion in the region is strong, with the local communities vying to be heard. “It’s always discouraging to see setbacks with major corporations like Walmart, but as long as workers demand their rights, we’ll stay on the right track.” Our source concluded, “It doesn’t all have to be a result of the trend in the US; it can be a demand of the people themselves.”