Following the 2020 protests sparked by the death of George Floyd, many corporations embraced Diversity, Equity, and Inclusion (DEI) initiatives. However, a recent shift in the legal and social climate, marked by the Supreme Court’s decision against affirmative action in college admissions, has led several prominent companies to scale back or reassess these programs. Conservative activists have leveraged legal challenges and social media to target corporate DEI policies, focusing on hiring practices, employee resource groups, and corporate sponsorships. This article examines some of the major companies that have modified their DEI strategies.
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The Changing Tide of DEI
DEI programs were initially designed to address historical discriminatory practices and foster more inclusive workplaces. Critics argue that programs prioritizing certain groups based on race, gender, or sexual orientation create unfair advantages. The Supreme Court’s ruling against affirmative action has further fueled this debate, prompting companies to re-evaluate their DEI approaches in light of potential legal risks.
Companies Revising DEI Strategies
Several high-profile companies have announced changes to their DEI programs:
Target
Target is discontinuing its “Belonging at the Bullseye” program, which aimed to support Black employees, enhance the Black shopper experience, and promote Black-owned businesses. The company will also no longer pursue its cyclical three-year DEI goals, which included increasing representation of women and minorities in hiring and promotion, and diversifying its supplier base. Additionally, Target will cease participation in DEI effectiveness surveys, including the Human Rights Campaign’s annual index.
Meta Platforms
Meta Platforms, parent company of Facebook and Instagram, has dissolved its DEI program, citing the Supreme Court’s affirmative action ruling as a catalyst for review. The company will no longer utilize a “diverse slate approach” to hiring and will instead concentrate on “fair and consistent practices that mitigate bias.” Meta’s new global policy chief, Joel Kaplan, emphasized the shift towards hiring based solely on talent.
Amazon
While not specifying which programs are affected, Amazon acknowledged it is phasing out certain DEI initiatives by the end of 2024. The company aims to focus on programs with “proven outcomes” and cultivate a more organically inclusive culture.
McDonald’s
McDonald’s has retired its specific numerical DEI goals for senior leadership and discontinued a program encouraging supplier diversity. The company is also pausing participation in external DEI surveys, including the Human Rights Campaign’s index. Despite these changes, McDonald’s maintains its commitment to inclusion and the benefits of a diverse workforce.
Walmart
Walmart has opted not to renew its commitment to a racial equity center established in 2020 and will no longer participate in the Human Rights Campaign’s Corporate Equality Index. The company will also enhance monitoring of its third-party marketplace to ensure compliance with policies regarding products for LGBTQ+ minors. Furthermore, race and gender will no longer be primary considerations in supplier contracts and grant eligibility.
Ford
Ford has revised its DEI policies, discontinuing participation in the Human Rights Campaign’s Corporate Equality Index. While affirming its commitment to a safe and inclusive workplace, Ford will no longer tie compensation to specific diversity goals. The company intends to prioritize customer and employee well-being over public commentary on potentially divisive social issues.
Lowe’s
Lowe’s has consolidated its employee resource groups into a single umbrella organization and will no longer participate in the Human Rights Campaign’s index. The company is also ceasing sponsorship of events outside its core business areas.
Harley-Davidson
Harley-Davidson has initiated a review of all sponsorships and affiliations, prioritizing initiatives that support motorcycling, first responders, military members, and veterans. The company will no longer participate in the Human Rights Campaign’s workplace equality ranking and will focus its training on business-related needs. Harley-Davidson confirmed it does not employ hiring quotas and will eliminate supplier diversity spending goals.
Brown-Forman
Brown-Forman, the parent company of Jack Daniels, has withdrawn from the Human Rights Campaign’s Corporate Equality Index and removed quantitative workforce and supplier diversity targets. The company will link incentives and employee goals to business performance and revise training programs to align with its updated strategy.
John Deere
John Deere will no longer sponsor “social or cultural awareness” events and will audit training materials to ensure compliance with legal requirements and the absence of “socially-motivated messages.” The company stated that diversity quotas and pronoun identification are not company policy but will continue to monitor and promote workforce diversity.
Tractor Supply
Tractor Supply has eliminated all DEI roles and goals, discontinued sponsorship of non-business activities, and withdrawn from carbon emission targets. The company will instead focus on land and water conservation efforts. This decision followed online criticism and calls for the CEO’s resignation from the National Black Farmers Association.
Conclusion
The evolving legal and social landscape surrounding DEI has prompted a significant reassessment of these initiatives within corporate America. While some companies are scaling back programs, others are refocusing their efforts on fostering inclusion through different approaches. The long-term impact of these changes on workplace diversity and equity remains to be seen.
