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Good morning!
It’s been a bad week for DEI as more major companies announce rollbacks on various diversity initiatives.
On Monday, Lowe’s said it had been “reviewing” its diversity programs following the U.S. Supreme Court’s decision to overturn affirmative action last year. Company leadership wrote in an internal memo they would combine all employee resource groups (ERGs) into one, no longer take part in Human Rights Campaigns surveys, and halt participation in festivals and parades outside its business functions.
Just a few days later, Ford followed suit. CEO Jim Farley wrote an internal email to staffers that the company would be curtailing some of its DEI programs as the “external and legal environment related to political and social issues continues to evolve.” He said the company would cease engagement with the Human Rights Campaign and “best places to work” lists, shift corporate sponsorships, and open up ERGs to all employees.
But Ford and Lowe’s are just the latest blows in what has been a tough summer of DEI. Other large companies like John Deere, Harley Davidson, Jack Daniel’s, and Tractor Supply have also scaled back their inclusivity initiatives.
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. 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.”
But JT Saunders, chief diversity officer for Korn Ferry, a global consulting firm, tells Fortune these companies don’t represent a widespread trend.
“We shouldn’t necessarily be raising the alarm that organizations are doing away [with] DEI, but rather, it’s a moment in time where it’s a leveling off,” he says. “Organizations who may not have had the most solid footing around a DEI strategy are starting to pull back a bit. Maybe they weren’t clear on the intention behind why they were doing it, it’s not deeply embedded into their business model. As a result it’s harder for them to actualize a practice.”
And while some big-name companies may be walking back their diversity stances, a fuller view of the DEI landscape presents a more complicated picture. Around 72% of C-suite and HR leaders plan to continue to build and enhance their current DEI programs within the next two years, according to a 2024 report from Bridge Partners, a consulting firm. And workers are invested, too—demand for DEI programs from employees was up 9% since 2022, according to recent data from Edelman, a PR company.
“DEI will win at the end of the day because companies are leveraging it as a strategic business tool,” says Saunders. “Organizations that have committed to DEI understand its value, purpose, and place in their organization have not given up on this.”
Emma Burleigh
emma.burleigh@fortune.com
Azure Gilman
azure.gilman@fortune.com
In recognition of the Labor Day holiday on Monday, the next edition of CHRO Daily will be in your inbox on Tuesday, Sept. 3.
Around the Table
A round-up of the most important HR headlines.
Employers are quietly lowering pay levels amid a cooling hiring market—they started by reducing wages for white collar staffers, and are now going after blue collar employees. WSJ
Unionization of student employees working at U.S. colleges has increased 133% since 2012, likely due to lack of non-tenure faculty tracks, according to a new report. The Guardian
The European Union called for countries to elect more women onto their corporate boards, but the body is struggling to get women into leadership positions within its own organization. New York Times
Watercooler
Everything you need to know from Fortune.
Ah-choo. Gen Z and young millennials are taking more sick days off than their elder coworkers, signaling a change in the unwritten rules of the workplace, according to a new report. —Sasha Rogelberg
Lustful collusion. The Royal Bank of Canada claims that its CFO pushed for undeserved raises and promotions for a financial executive she was having an affair with, and wants her to pay the company back. —Amanda Gerut
Tight leash. The CEO of an Australian mining company first banned staffers from working at home, and now wants to bar coffee breaks, saying “I want to hold them captive all day long.” —Chris Bourke, Bloomberg
Green with envy. Google and Meta workers are airing out their jealousy of Nvidia employees on anonymous tech forums, covetous of the chip giant’s compensation packages that have made many of its staffers rich. —Eleanor Pringle