Ford Joins High-Profile U.S. Companies Reducing Focus on DEI Efforts

Ford Motor Co. has informed its employees that it will cease participation in an annual survey conducted by an LGBTQ advocacy organization and will stop using quotas for minority-owned dealerships and suppliers. This decision marks Ford as the latest company to modify its diversity, equity, and inclusion (DEI) efforts amid escalating pressure from conservative activists who are mounting a notable anti-DEI campaign.

In an internal email shared with USA TODAY, Ford CEO Jim Farley acknowledged the diverse beliefs of employees and customers, stating, “The external and legal environment related to political and social issues continues to evolve.”

When approached for further comment, a Ford representative indicated that the message to global employees was self-explanatory, adding no additional details. Prior to Ford’s announcement, activist Robby Starbuck claimed he was investigating the company’s DEI policies. Recently, Starbuck also took credit for Lowe’s decision to lessen its DEI initiatives and has initiated campaigns against rival companies.

Ford confirmed that it will no longer participate in the Human Rights Campaign’s Corporate Equality Index or its “best places to work” surveys. The company has also opened its employee resource groups to all workers, though the scope of changes to its overall DEI policies remains unclear. Starbuck responded positively to the news, calling it “a great start.”

The President of the Human Rights Campaign, Kelley Robinson, expressed her disappointment with Ford’s decision, stating that the company is neglecting its responsibilities to its employees, consumers, and shareholders. Robinson highlighted concerns about Ford’s commitment to supporting women leaders, employees of color, and LGBTQ+ workers, emphasizing that consumers might want to reconsider their purchasing decisions based on the company’s actions.

Both Ford and Lowe’s took these precautionary steps before Starbuck mobilized his social media followers to potentially boycott these brands. Starbuck claims his efforts are compelling large corporations to reconsider their DEI policies out of fear of being publicly scrutinized.

Starbuck, who has a substantial following on X (formerly Twitter), stated that he does not disclose details of his campaigns ahead of time but insisted that the gradual changes seen at Ford won’t divert their focus on instigating larger reforms.

A growing number of conservative activists have arisen against DEI commitments within corporate America, leveraging recent changes in the legal landscape that have followed the Supreme Court’s decision to ban affirmative action in college admissions. Figures like Edward Blum and Stephen Miller have intensified their focus on the private sector, launching legal challenges against various corporations, nonprofits, and government agencies.

A multitude of businesses, including Tractor Supply, John Deere, Harley-Davidson, and Brown-Forman (the maker of Jack Daniel’s whiskey), have made adjustments to their DEI programs following Starbuck’s scrutiny. Notably, Farley and John May, CEO of John Deere, sit on each other’s company boards.

Although many business leaders publicly remain committed to DEI initiatives, there is an increasing tendency to recalibrate their investments in these programs. Hiring quotas that some conservatives label as illegal have led to changes, where fellowships and internships that were previously reserved for underrepresented groups are now open to all. Some companies are even avoiding mention of diversity goals in their shareholder reports, with some listing DEI as a potential risk factor.

Diversity advocates contend that business leaders seek to navigate away from contentious cultural conversations, striking a balance by continuing DEI initiatives that resonate positively with a significant part of their consumer base.

As the political climate intensifies ahead of the 2024 elections, where GOP nominee Donald Trump is expected to reverse the Biden administration’s initiatives on equity, the corporate landscape is seeing a shift. Recent surveys indicate that fewer Americans support businesses taking public stances on social issues; only 38% express willingness for corporations to do so, reflecting a significant drop since 2022.

Starbuck positions himself as a corporate watchdog, arguing for a separation of politics and business. His approach involves targeting brands that enjoy broad appeal among conservatives, claiming they have strayed from their customer bases. His first target, Tractor Supply, eliminated its DEI programs following his campaign.

As Starbuck encourages consumers to back companies that realign with conservative values, diversity advocates argue that DEI initiatives contribute to business success. Studies suggest that diverse teams boost innovation and overall business performance. Critics of anti-DEI activism assert that undermining these programs disregards their proven effectiveness in advancing businesses.

With the discourse around DEI becoming increasingly polarized, experts such as Shaun Harper advocate for greater transparency from companies regarding their diversity efforts. They urge businesses to communicate their commitment clearly, combating negative perceptions fueled by divisive media narratives.

Source: USA Today