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- It’s been a tough week for DEI as Lowe’s and Ford announce rollbacks—but the bigger picture tells a different story (newsbreak.com)
Good morning!
This week has proven challenging for diversity, equity, and inclusion (DEI) efforts, as several prominent companies have disclosed cutbacks to their diversity initiatives.
On Monday, Lowe’s announced it was reevaluating its diversity programs after the U.S. Supreme Court struck down affirmative action last year. An internal memo detailed that the company would consolidate its employee resource groups (ERGs) into a single group, withdraw from the Human Rights Campaigns surveys, and stop participating in festivals and parades unrelated to its core business functions.
Shortly after Lowe’s announcement, Ford’s CEO Jim Farley, in a staff email, indicated Ford would also be reducing some of its DEI initiatives. He mentioned that these decisions were coming as the “external and legal environment related to political and social issues continues to evolve.” Ford will discontinue engagement with the Human Rights Campaign, withdraw from “best places to work” lists, adjust its corporate sponsorships, and make its ERGs accessible to all employees.
Ford and Lowe’s are part of a string of companies scaling back on inclusivity efforts this summer, including John Deere, Harley Davidson, Jack Daniel’s, and Tractor Supply.
These DEI reductions have been linked partially to the actions of conservative influencer Robby Starbuck, a prominent user on social media platform X, who has openly taken credit for these corporate policy reversals. His opposition includes the Human Rights Campaign’s Corporate Equality Index, specific ERGs, and sponsoring certain events. After Lowe’s scaled back its diversity operations, Starbuck celebrated the impact of his campaign on X, noting his influence in changing policies at several companies.
However, JT Saunders, Chief Diversity Officer at global consulting firm Korn Ferry, suggested to Fortune that these instances might not signify a general trend. According to Saunders, it’s more indicative of a momentary plateau where companies less committed to their DEI strategies are pulling back, particularly if these initiatives were not deeply integrated into their business models.
In contrast to these cutbacks, other data paints a more optimistic picture of the DEI landscape. A report from consulting firm Bridge Partners anticipates about 72% of C-suite and HR leaders are planning to expand their DEI programs within the next two years. Additionally, demand for such programs among employees has increased by 9% since last year, per recent statistics from public relations firm Edelman.
Saunders remains positive about the future of DEI, emphasizing that it will prevail as companies increasingly recognize its strategic value and integrate it into their organizational frameworks.
This story was originally featured on Fortune.com.