How does the order encourage the private sector to end DEI?

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The Executive Order Encourages the Private Sector to End DEI Through Directives and Reporting Requirements

The executive order issued by the US President directs government agency heads to encourage the private sector to end diversity, equity, and inclusion (DEI) practices that are deemed to be illegal discrimination or preferences. This encouragement is to be advanced by promoting individual initiative, excellence, and hard work within private sector operations. Furthermore, the Attorney General is tasked with submitting a comprehensive report that will identify discriminatory DEI practitioners and recommend measures to deter such programs.
Attorney General's Report to Identify Discriminatory Practices

Within 120 days, the Attorney General is required to consult with government agencies and submit a report. This report is to contain recommendations for enforcing federal civil rights laws and other measures to encourage the private sector to cease illegal discrimination and preferences, including those related to DEI. The directive specifies that this report will identify the most "egregious and discriminatory DEI practitioners" across various sectors.
Agency Actions to Investigate Corporations and Institutions

As part of the plan outlined in the executive order, federal agencies will identify up to nine potential civil compliance investigations. These investigations are to target specific types of entities, including publicly traded corporations, large non-profit corporations and associations, foundations with assets of $500 million or more, state and local bar and medical associations, and institutions of higher education with endowments exceeding $1 billion. The focus is on identifying and deterring DEI programs that constitute illegal discrimination.
Emphasis on Individual Initiative and Excellence

The executive order directs agency heads, with the assistance of the Attorney General, to take appropriate action within their agencies to advance the policy of individual initiative, excellence, and hard work in the private sector. This directive is framed as a means to encourage the private sector to move away from DEI-related policies that are perceived as promoting preferences rather than merit.

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How does the order encourage the private sector to end DEI?

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