Several prominent companies have recently made changes to their diversity, equity, and inclusion efforts, signaling a shift away from the initiatives that gained traction in the wake of the protests following the killing of George Floyd in 2020. These changes have been influenced by conservative activists targeting workplace programs through legal challenges and social media campaigns, as well as by executive orders from former President Donald Trump aimed at dismantling DEI policies in both the public and private sectors.
While DEI policies are designed to address systemic barriers faced by underrepresented groups in various fields, critics argue that some programs are discriminatory as they focus on factors such as race, gender, and sexual orientation. Companies have faced scrutiny for programs supporting minority-owned businesses, increasing minority representation in leadership positions, and promoting diversity through various initiatives.
Among the companies that have adjusted their approach to DEI:
Goldman Sachs: The investment firm abandoned its formal board diversity policy which required IPO clients to include women and minority members on their boards. Despite this change, Goldman Sachs continues to advocate for diverse perspectives on boards and offers a placement service for clients seeking diverse board candidates.
Google: Google rescinded its goal to boost representation of underrepresented groups in leadership roles by 30% within five years, citing legal concerns following Trump’s executive order. The company is exploring further changes in response to potential prohibitions on DEI practices for federal contractors.
Target: The retail giant announced modifications to its “Belonging at the Bullseye” strategy, including the discontinuation of programs supporting Black employees, shoppers, and businesses. These changes mark a shift from the initiatives established in the aftermath of Floyd’s death in Minneapolis.
These corporate decisions reflect a broader trend of companies reevaluating their DEI strategies amidst legal challenges and political shifts, raising questions about the future of diversity initiatives in the corporate world.
Many major companies have recently announced changes to their diversity, equity, and inclusion (DEI) programs. Target, for example, has decided to no longer follow its three-year DEI goals, which included initiatives to increase diversity in hiring, promotions, and supplier networks. Additionally, Target will no longer participate in surveys assessing the effectiveness of its actions in this area. Meta Platforms, the parent company of Facebook and Instagram, has also eliminated its DEI program, citing the need to focus on fair and unbiased practices for all employees. Amazon has announced the winding down of some of its DEI programs, with a shift towards proven outcomes and a more inclusive culture. Similarly, McDonald’s and Walmart have made changes to their diversity practices, with McDonald’s ending specific diversity goals and pausing external surveys, while Walmart has decided not to renew its commitment to a racial equity center and will no longer participate in the Corporate Equality Index by the Human Rights Campaign.
Products targeted at LGBTQ+ youth, including chest binders for transgender minors, will be offered by the company. They have also decided not to use race and gender as criteria for diversity in supplier contracts or in determining eligibility for financing grants. CEO Jim Farley of Ford announced these changes in August through a memo to employees, revealing that the company will no longer participate in the HRC’s Corporate Equality Index. Farley emphasized Ford’s commitment to creating a safe and inclusive workplace without implementing hiring quotas or linking compensation to specific diversity goals.
Lowe’s management shared in August that they are reevaluating their programs after the Supreme Court’s affirmative action ruling and will consolidate their various employee resource groups into a single umbrella organization. The company will no longer be part of the HRC index and will cease sponsorship of events outside of its core business areas.
Harley-Davidson informed the public in August that all sponsorships and affiliations will be reviewed and approved centrally. The company will focus on promoting motorcycling, supporting the riding community, first responders, military personnel, and veterans. Harley-Davidson will no longer engage in workplace equality rankings by the HRC and will align training with business needs rather than social motivations.
Brown-Forman, the parent company of Jack Daniels, has withdrawn from the HRC’s Corporate Equality Index and made other changes to its diversity and inclusion strategy. The company aims to foster an inclusive work environment by removing specific diversity goals, aligning incentives with business performance, and updating training programs for consistency with the revised strategy.
John Deere, a farm equipment manufacturer, disclosed in July that it would no longer sponsor events related to social or cultural awareness and will audit training materials for compliance with laws. The company clarified that diversity quotas and pronoun identification are not part of their policies, but they will continue to monitor diversity efforts.
Tractor Supply, the retailer, made a significant announcement in June regarding its corporate diversity and climate initiatives. The company revealed its decision to discontinue a variety of programs in response to a wave of backlash from conservative online communities. Tractor Supply stated that it would be phasing out all Diversity, Equity, and Inclusion (DEI) positions while also retiring existing DEI objectives. Furthermore, the retailer declared that it would cease supporting non-business related activities, such as Pride festivals and voting campaigns, and would no longer participate in the Human Rights Campaign (HRC) index reporting.
Headquartered in Brentwood, Tennessee, Tractor Supply, known for its wide range of products including farming equipment and pet supplies, disclosed its intention to shift away from carbon emission goals towards a renewed focus on land and water conservation efforts.
Following this announcement, the National Black Farmers Association called for the resignation of Tractor Supply’s president and CEO in response to the company’s strategic changes.
