More DEI Backtracking

Diversity, equity, and inclusion (DEI) had a hugely successful few years in the corporate space. DEI was all the rage among corporate execs and HR professionals, and corporations were spending big bucks on chief diversity officers (CDO) and DEI teams.

Lately, however, DEI has been on the retreat, with many high-profile companies backtracking on DEI commitments and investments and even scrapping or—more politically—rethinking their DEI efforts.

Companies Pulling Back on DEI

Home improvement giant Lowe’s was one of the most recent corporate employers to announce a backtrack on its DEI efforts, and it was followed closely by auto-maker Ford’s own announcement.

“But Ford and Lowe’s are just the latest blows in what has been a tough summer of DEI,” writes Emma Burleigh in an article for Fortune. “Other large companies like John Deere, Harley-Davidson, Jack Daniel’s, and Tractor Supply have also scaled back their inclusivity initiatives.”

So what accounts for such a dramatic swing of the pendulum on DEI efforts? A few factors are likely at play.

Drivers Behind the Pull Back

One is a recent legal setback for proponents of DEI and related efforts in a U.S. Supreme Court ruling over the summer that struck down certain race-based quota systems in higher education and which many experts believe will be the basis for legal challenges against corporate DEI efforts.

Another factor is likely consumer sentiment. Corporations generally are more motivated by profits than a sense of social duty, and the severe backlash against brands like Target, Bud Light and Harley-Davidson over their perceived “woke” policies has not gone unnoticed in corporate boardrooms.

Finally, some observers point to concerted efforts among specific conservative personalities aimed at combating the advance of corporate DEI.

The Impact of Robby Starbuck

“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,” writes Burleigh.

“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.”

DEI’s meteoric rise in corporate America is seeing an equally rapid reversal as major companies across industries from beer to big-box retail to automotives have publicly scrapped or dialed back their DEI efforts. Various factors have likely contributed to this reversal, and time will tell how many companies follow suit.

In the meantime, a number of companies continue to hold the course, likely because they have recognized real benefits driven by their own DEI efforts.

Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.

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