Rolls-Royce shrinks policy amid political pressure and legal changes in the United States
Rolls-Royce has become the latest UK headquarters season to withdraw from the diversity, equity and inclusion (DEI) initiative, citing the need to comply with U.S. opposition legislation, a move that is under growing pressure from President Trump’s White House.
The FTSE 100 Aerospace and Defense Team, which employs 43,000 worldwide, has notified employees that it will cut funding and internal support for its employee inclusion network, such as LGBTQ+ Group Prism. Although employees can continue to meet informally, these groups will no longer receive corporate support, have operations on the corporate intranet, or are allowed to promote activities within the company's premises.
The changes were conveyed last month by Natasha Whitehurst, the head of diversity, inclusion and belonging, and Adam Riddle, the head of North American operations. They also confirmed the launch of a new “voice network of employees” that is open to all employees and is designed to replace specific identity groups.
Rolls-Royce said the decision was to ensure compliance with recently introduced opposition legislation in the United States, which has 6,000 employees in the United States and one-third of the company's £19 billion revenue is based. The company holds major defense contracts with the U.S. government, including engine production for military aircraft, such as the C-130 Hercules and the B-52 bomber fleet.
“We support all colleagues at their best, ensuring we live in our own behavior and promoting a culture of high performance and engagement. We regularly review our policies and approaches to ensure we achieve this outcome while complying with all legal requirements in the jurisdictions we operate.”
Thereafter, references to the DEI and the network containing the network have been removed from the company's website of Rolls-Royce.
Rolls-Royce is not alone. Other British multinationals with a large U.S. footprint have also been able to reduce the visibility of their DEI in recent months. GSK removed references to “diversity” from its website, while advertising group WPP excluded DEI language from its annual report and executive compensation standards.
The rollback emerged amid widespread opposition to the DEI policy of U.S. companies, the goal of Trump's administration targeting its politically motivated corporate initiatives. Several states led by Republicans have introduced laws to prohibit or restrict diversity programs in publicly funded institutions and companies contracted with government.
The decision is in stark contrast to previous news led by Rolls-Royce. Last year, CEO Tufan Erginbilgic praised the inclusive network as a “powerful way” to foster a sense of belonging across the company.
“As volunteers in every part of our business from store flooring to senior leadership, they are role models, they are united and help us learn,” he said in 2024.
Despite this shift, Rolls-Royce insists that performance-based recruitment remains at the heart of its culture. But the global imposition of U.S. compliance standards – even in countries where DEI programs are still encouraged, has drawn criticism from campaigners and employees.
With increasing political scrutiny in the United States and the United Kingdom, the future of corporate inclusion efforts may increasingly depend on balanced internal culture with external pressures and a legal grey area in between.
