Advertising giant WPP cuts diversity section from annual report | WPP

The British advertising giant WPP has become the latest company to cut the phrase “diversity, equity and inclusion” from its annual report as the policies come under attack from the Trump administration.

The agency, which counts the US as by far its largest market, boasts the storied “Madison Avenue” agencies, J. Walter Thompson, Ogilvy & Mather and Grey, among its top brands.

In WPP’s annual report, which was released on Friday, the chief executive, Mark Read, told shareholders that “much has changed over the last year” due to political events.

“In today’s complex world, a pressing question for brands and organisations is whether to engage on social issues in a more contested public arena, and how to navigate the expectations of different audiences with competing views on sensitive topics,” he wrote.

The same document axed all references of “diversity, equity and inclusion”, “DE&I” and “DEI”. The policy attracted 20 mentions in the previous year’s report. The earlier document mentioned three times that the company was seen as a “diversity leader”.

The omissions, which were first reported by the Sunday Times, included changes to how the company reports on measuring top executives’ non-financial performance, which contributes to the size of their short-term bonuses. In the new report, the phrasing has switched to “people and culture”.

WPP declined to comment on whether the new wording was a response to anti-DEI policy moves by the Trump administration. The company said that, while the phrasing in its annual report had changed, the way in which executives’ short-term bonuses are calculated was unaltered.

Within his first few days in office, Donald Trump instructed US government agencies to shut down their DEI programmes, with federal employees working in diversity offices immediately put on paid leave.

That move came after Trump signed two executive orders targeting DEI programmes within the federal government. The first executive order largely scrapped the DEI efforts that took place under Joe Biden, who had ordered all federal agencies to come up with equity plans.

A second executive order effectively ended any DEI activities within the federal government. This order overturned a handful of executive orders from past presidents, including one from Lyndon B Johnson that was signed during the civil rights era and required federal contractors to adopt equal opportunity measures.

The Financial Times recently reported that more than 200 US companies have removed references to “diversity, equity and inclusion” from their annual reports since Trump’s election.