UK company GSK pauses diversity initiatives… to suit Trump!

GlaxoSmithKline (GSK), the British pharmaceutical giant, has placed a hold on its diversity initiatives for its UK workforce, citing obligations imposed by executive orders from US President Donald Trump. The move comes as GSK, under the leadership of Emma Walmsley—one of the few female CEOs of a FTSE 100 company—has also removed mentions of “diversity” from its online presence.

These executive orders, which aim to curtail federal agencies and contractors’ diversity, equity, and inclusion (DEI) objectives, were enacted shortly after Trump began his second presidential term. Although these orders have encountered legal challenges in US courts, numerous American corporations, including names like Goldman Sachs, Walmart, and Amazon, have swiftly discarded their diversity policies. Recently, BlackRock, the largest asset manager globally, also opted to relinquish its targets for increasing minority representation within its workforce.

Despite being a UK-based company listed on the London Stock Exchange, GSK views compliance with these US directives as crucial due to its significant market presence and its status as a key supplier to the US government. On Thursday, the firm justified the move by mentioning potential remuneration packages for Walmsley that could reach approximately £22 million over the next three years to remain competitive against US firms.

In contrast to GSK’s decision, its UK rival AstraZeneca, which similarly has a substantial workforce in the US, has opted to retain its diversity, equity, and inclusion policies. According to internal communications, GSK is currently reviewing all diversity and inclusion policies, with a pause instituted on associated activities. Importantly, initiatives aimed at enhancing diversity in clinical trials—essential for evaluating the effectiveness of medicines across diverse demographic groups—will not be impacted.

References to “diversity, equity and inclusion” on GSK’s website have been updated to simply “inclusion,” indicating a shift in focus. Internal programmes designed to support women and those from less privileged socioeconomic backgrounds have also been temporarily put on hold, along with related charitable activities currently under review.

A spokesperson for GSK reaffirmed the company’s dedication to fostering an inclusive workplace, stating, “We have to ensure we remain compliant with the law in the countries in which we operate, including the US.” They clarified that the pause on activities allows for necessary reviews but does not equate to a permanent cessation of efforts.

The decision has sparked concern among GSK’s employees in the UK. Catherine Howarth, CEO of the campaign group ShareAction, expressed disappointment, noting that this shift might alienate GSK’s long-standing investors and stakeholders. She warned that abandoning policies that champion equal opportunities could lead to talent attrition and hinder the company’s ability to attract top performers.

Adding to the discourse, Sarah Tahamtani, head of employment practice at Clarion, commented on the unusual nature of a UK employer being bound by US executive orders. Nevertheless, she recognised that such orders could influence the overall sentiment towards diversity and discrimination, potentially affecting operational attitudes within UK companies.