Diverging Diversity Policies: A Global Headache for Businesses

As the UK government renews its summer internship scheme for young people from underrepresented backgrounds, its cousins across the pond are re-evaluating their diversity and inclusion policies. The tone, however, has been strikingly different in the US, where federal agencies were reminded that "all Americans must be treated equally" in a memorandum issued by Attorney General Pam Bondi. This divergence poses a significant challenge for global companies with government contracts, whose failure to comply with one set of obligations or the other may result in exclusion from public tender processes and a subsequent loss of business.

Key Takeaways:

• The UK government's summer internship scheme is only offered to young people from a "Black, Asian, mixed heritage or ethnic minority background and from a socially or economically disadvantaged background".
• In contrast, the US Attorney General Pam Bondi reminded federal agencies that "all Americans must be treated equally" and that entities receiving federal funds must comply with federal law and not discriminate on the basis of protected characteristics.
• The US memorandum specifically highlights unlawful practices, including race-based programs and scholarships, preferential hiring or promotion practices, and restricting access to facilities or resources based on race or ethnicity.
• Lucy Blake, a Partner at law firm Jenner & Block, notes that the divergence between diversity policies in the UK and US poses a headache for global companies with government contracts.
• This divergence creates difficult legal, commercial, reputational, and political predicaments, which may ultimately benefit those who prioritize equal treatment and opportunity.

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Sources:

• Memorandum issued by United States Attorney General Pam Bondi
• Lucy Blake, Partner at law firm Jenner & Block
• Article citing the UK government's summer internship scheme