Which US companies are pulling back on diversity initiatives?
McDonald’s joins a growing list of companies that are pulling back on diversity, equity and inclusion initiatives. Like others before it, the fast-food chain cites a U.S. Supreme Court decision in July 2023 that outlawed affirmative action in college admissions.
Conservative activists have gone after companies — both in the courts and on social media — seeking to set a similar precedent in the working world. They’ve been targeting workplace initiatives such as diversity programs and hiring practices that prioritize historically marginalized groups, and have widened their objections to include programs focused on gender identity and sexual orientation.
DEI policies typically are intended as a counterweight to discriminatory practices. Critics argue that education, government and business programs which single out participants based on factors such as race, gender and sexual orientation are unfair and the same opportunities should be afforded to everyone.
McDonald’s said Monday that it would retire specific goals for achieving diversity at senior leadership levels and end a program that encourages its suppliers to develop diversity training. The company’s diversity team will be renamed the Global Inclusion Team. The Chicago burger giant says it remains committed to inclusion and believes a diverse workforce is a competitive advantage.
Here’s a look at some of the other companies that have retreated from DEI:
Walmart
The world’s largest retailer confirmed in November that it would not be renewing a five-year commitment for an equity racial center set up in 2020 after the police killing of George Floyd, and that it would stop participating in the Human Rights Campaign’s annual benchmark index measuring workplace inclusion for LGBTQ+ employees.
Walmart also said it will better monitor its third-party marketplace to make sure items sold there do not include products aimed at LGBTQ+ minors, including chest binders intended for transgender youth.
Additionally, the company will no longer consider race and gender as a litmus test to improve diversity when it offers supplier contracts and it won’t be gathering demographic data when determining financing eligibility for those grants.
Ford
CEO Jim Farley sent a memo to the automaker’s employees in August outlining changes to the company’s DEI policies, including a decision to stop taking part in HRC’s Corporate Equality Index.
Ford, he wrote, had been looking at its policies for a year. The company doesn’t use hiring quotas or tie compensation to specific diversity goals but remained committed to “fostering a safe and inclusive workplace,” Farley said.
“We will continue to put our effort and resources into taking care of our customers, our team, and our communities versus publicly commenting on the many polarizing issues of the day,” the memo said.
Lowe’s
In August, Lowe’s executive leadership said the company began “reviewing” its programs following the Supreme Court’s affirmative action ruling and decided to combine its employee resource groups into one umbrella organization. Previously, the company had “individual groups representing diverse sections of our associate population.”
The retailer also will no longer participate in the HRC index, and will stop sponsoring and participating in events, such as festivals and parades, that are outside of its business areas.
John Deere
The farm equipment maker said in July that it will no longer sponsor “social or cultural awareness” events, and that it would audit all training materials “to ensure the absence of socially-motivated messages” in compliance with federal and local laws.
Moline, Illinois-based John Deere added “the existence of diversity quotas and pronoun identification have never been and are not company policy.” But it noted that it would still continue to “track and advance” the diversity of the company.
Tractor Supply
The retailer in June said it was ending an array of corporate diversity and climate efforts, a move that came after weeks of online conservative backlash against the rural retailer.
Tractor Supply said it would be eliminating all of its DEI roles while retiring current DEI goals. The company added that it would “stop sponsoring non-business activities” such as Pride festivals or voting campaigns — and no longer submit data for the HRC index.
The Brentwood, Tennessee-based company, which sells products ranging from farming equipment to pet supplies, also said that it would withdraw from its carbon emission goals to instead “focus on our land and water conservation efforts.”
The National Black Farmers Association called on Tractor Supply’s president and CEO to step down shortly after the company’s announcement.
The Associated Press
