Good morning!
It’s been a bad week for DEI as more major companies announce rollbacks on various diversity initiatives.
On Monday, Lowe’s said it had been “reviewing” its diversity programs following the U.S. Supreme Court’s decision to overturn affirmative action last year. Company leadership wrote in an internal memo they would combine all employee resource groups (ERGs) into one, no longer take part in Human Rights Campaigns surveys, and halt participation in festivals and parades outside its business functions.
Just a few days later, Ford followed suit. CEO Jim Farley wrote an internal email to staffers that the company would be curtailing some of its DEI programs as the “external and legal environment related to political and social issues continues to evolve.” He said the company would cease engagement with the Human Rights Campaign and “best places to work” lists, shift corporate sponsorships, and open up ERGs to all employees.
But Ford and Lowe’s are just the latest blows in what has been a tough summer of DEI. Other large companies like John Deere, Harley Davidson, Jack Daniel’s, and Tractor Supply have also scaled back their inclusivity initiatives.
The DEI rollbacks are reportedly due at least in part to Robby Starbuck, a conservative influencer and avid X user, who has claimed credit for the corporate about face. He’s against the Human Rights Campaign’s Corporate Equality Index, ERGs for minority and LGBTQ+ workers, and donations towards “pride events or other divisive events.” After Lowe’s axed its diversity efforts, he declared victory on X, writing: “So far you’ve helped me change corporate policy at Tractor Supply, John Deere, Harley Davidson, Polaris, Indian Motorcycle and now Lowe’s. We are a force to be reckoned with.”
But JT Saunders, chief diversity officer for Korn Ferry, a global consulting firm, tells Fortune these companies don’t represent a widespread trend.
“We shouldn’t necessarily be raising the alarm that organizations are doing away [with] DEI, but rather, it's a moment in time where it's a leveling off,” he says. “Organizations who may not have had the most solid footing around a DEI strategy are starting to pull back a bit. Maybe they weren't clear on the intention behind why they were doing it, it's not deeply embedded into their business model. As a result it's harder for them to actualize a practice.”
And while some big-name companies may be walking back their diversity stances, a fuller view of the DEI landscape presents a more complicated picture. Around 72% of C-suite and HR leaders plan to continue to build and enhance their current DEI programs within the next two years, according to a 2024 report from Bridge Partners, a consulting firm. And workers are invested, too—demand for DEI programs from employees was up 9% since 2022, according to recent data from Edelman, a PR company.
“DEI will win at the end of the day because companies are leveraging it as a strategic business tool,” says Saunders. “Organizations that have committed to DEI understand its value, purpose, and place in their organization have not given up on this.”
Emma Burleigh
emma.burleigh@fortune.com
Azure Gilman
azure.gilman@fortune.com
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