Badenoch said: “The new report shows that, while millions are being spent on these initiatives, many popular DEI practices – such as diversity training – have little to no tangible impact in increasing diversity or reducing prejudice.

“In fact, many practices have not only been proven to be ineffective, they have also been counterproductive.”

She added: “No group should ever be worse off because of companies’ diversity policies – whether that be black women, or white men…

“Performative gestures such as compulsory pronouns and rainbow lanyards are often a sign that organisations are struggling to demonstrate how they are being inclusive.”

The report encourages firms to avoid diversity schemes which alienate certain groups, including the white working classes, cause division and have no impact.

It also says bosses should consider disadvantages the working classes may have faced when modelling their diversity schemes. It warns: “Employers must also consider less visible diversity, including socioeconomic and educational background.”

According to some campaigners, companies in the UK are “accelerating the politicisation of the workplace”.

British firms pose a “danger” of “threatening” the freedom of employees, according to the Director of Data and Impact at the Free Speech Union (FSU) Thomas Harris.

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