Trump attacks diversity: Germany's companies under pressure!

Trump attacks diversity: Germany's companies under pressure!

In times of political uncertainty and increasing pressure on diversity initiatives in the USA, Swetlana Franken, economist and professor of business and management, expresses concern about the regression in corporate diversity. In a recent post fr.de She talks about the impact of the Trump administration, which has caused American companies to significantly reduce their diversity programs.

Franken highlights that German companies such as Deutsche Telekom with its US subsidiary T-Mobile and SAP have also stopped diversity measures and are moving away from their values. She criticizes the fact that companies allow themselves to be influenced too much by political pressure and calls for more courage to represent principles even under economic pressure.

Threat from the US government

It's not just in the United States that the Trump administration has taken actions that undermine diversity and anti-discrimination policies. A recent letter from the US Embassy to German companies calls on them not to support “diversity, equality and inclusion” (DEI) programs if they want to do business with the USA. A decree that went into effect in January 2025 bans DEI programs and eliminates government funding. Even basic terms such as “women”, “minority” and “diversity” are being removed from official texts, posing a serious threat to diversity in companies Capital.

Companies like Google, Facebook and McDonald’s have also reduced their diversity strategies due to this pressure. However, Franken emphasizes that reversing such programs has not only ethical but also economic consequences. She points to studies that show that heterogeneous groups are more successful at creative tasks.

The role of companies in Germany

The importance of diversity for innovation and productivity is also emphasized by the German Chamber of Commerce and Industry (DIHK) and the BDI industry association. In Germany, protection against discrimination is anchored in law and is represented by the Independent Federal Commissioner for Anti-Discrimination, Ferda Ataman. Nevertheless, two thirds of highly qualified specialists from third countries report discriminatory experiences.

Franken warns that the shortage of skilled workers will cost the German economy around 50 billion euros in 2023. It is estimated that over 100 billion euros in additional value creation is possible through cultural diversity. The Confederation of German Employers' Associations (BDA) is therefore calling for a clear stance and appropriate anti-discrimination legislation.

In view of these challenges and the current political situation, it is urgent that the future federal government reforms the General Equal Treatment Act (AGG) and counters the pressure from the USA together with the EU. The Diversity Charter is supported by over 6,000 companies in Germany, but Franken complains that many companies only use it as a marketing tool.

The debate about diversity in companies and its influence on economic success remains of central importance. Franken calls for an honest examination of the ethical and economic aspects of this issue in order not only to remain true to one's own principles, but also to secure a sustainable economic future.