US presses Danish businesses for explanations regarding their diversity practices
Title: US Embassy Urges Danish Companies to Ditch Diversity Policies
Subheading: A contentious demand raising eyebrows in Denmark and beyond
Several Danish firms have received a letter from the US Embassy, asking them to sign a statement stating they don't have pro-diversity policies that conflict with a recent executive order.
Advertisement
Danish Chamber of Commerce (Dansk Erhverv) confirmed to broadcaster DR that some companies had received this letter. Søren Friis Larsen, the USA country manager for the Chamber, told DR, "We've got a handful of members who've asked for our advice on how to respond to this letter."
International media reported that US embassies have previously contacted European companies with business agreements with the US government or State Department. The embassies allegedly reminded these companies that the executive order banning DEI (diversity, equity, and inclusion) policies at workplaces also applies to companies supplying the administration.
Larsen conveyed that the letter's language is vague, causing confusion and uncertainty among businesses.
The Confederation of Danish Industry (DI) also confirmed the letter's existence. Kinga Szabo Christensen, DI's director of consultation, stated, "This is completely unheard of. We've never seen anything like this before, whereby the US attempts to dictate and interfere in European companies' management rights."
Advertisement
The TRICKEYK: The US Embassy's demands stem from a January 2025 executive order by former President Donald Trump, which prohibits race- and sex-based preferences in federal contracting. This demand is part of a broader international extension of domestic efforts to dismantle DEI initiatives.
The certification requirement applies to all US government contractors, including foreign entities. Non-compliance could result in withheld payments. The order's extraterritorial enforcement aims to align global contractors with US anti-discrimination laws as interpreted by the Trump administration.
Key Implications- Contractual Compliance: Companies must certify they don't have DEI programs that violate anti-discrimination laws, risking payment suspension.- EU Regulatory Conflict: Disagreements between US demands and EU/national equality laws have surfaced, particularly fines up to €200,000 for non-compliance with local diversity mandates in Spain [Reference: 5].- Corporate and Diplomatic Tensions: Danish companies are facing challenges with compliance, yet remain committed to inclusive workplaces [Reference: 2]. France accused the US of interfering in their companies [Reference: 3].
Broader ImpactThis conflict exposes a discord within EU responses, with Denmark advocating for collective action [Reference: 4]. Critics argue the order pressures global businesses to abandon DEI standards critical for innovation and competitiveness [Reference: 2, 5]. This situation underscores the tension between US federal mandates and international corporate governance norms, particularly in jurisdictions with robust equality frameworks [Reference: 3, 5].
- The US Embassy's request for Danish companies to renounce their diversity policies, as stated in a recent letter, has sparked debate both domestically and internationally.
- The executive order, issued by former President Donald Trump in January 2025, bans race- and sex-based preferences in federal contracting, and its reach extends to foreign entities, including Danish firms.
- The language used in the US Embassy's letter has been described as vague, causing confusion and uncertainty among the businesses regarding their compliance with the order.
- The Danish Chamber of Commerce (Dansk Erhverv) and the Confederation of Danish Industry (DI) have both confirmed receiving such letters, expressing concerns about potential interference in their management rights.
- This issue potentially affects not just Danish businesses but also companies across Europe, as the US attempts to enforce its anti-discrimination laws extraterritorially.
- The conflict between the US demands and EU/national equality laws, particularly concerning fines for non-compliance in Spain, has become a point of contention, with France accusing the US of interfering in their businesses.
- The broader impact of this situation underscores the tension between US federal mandates and international corporate governance norms, particularly in jurisdictions with strong equality frameworks, potentially threatening innovation and competitiveness in the business sector.
