From CNBC: 2024-09-19 16:31:07

Twenty civil rights organizations have called on Fortune 1000 companies to recommit to diversity, equity, and inclusion after several major corporations scaled back their efforts. This comes in response to companies like Ford, Tractor Supply, and Brown-Forman changing or ending internal DEI initiatives, which could impact business success and make workplaces less safe and inclusive.

Following a national reckoning over racial injustice post-George Floyd in 2020, several companies have reduced their DEI efforts. The Supreme Court’s June 2023 ruling on affirmative action in higher education serves as a guide for targeting private corporations focusing on diversity for employees, suppliers, and consumers. While some right-wing activists claim credit for pressuring these companies, corporate changes have been in the works since March.

Tractor Supply began a trend by cutting ties with LGBTQ+ advocacy group, the Human Rights Campaign, followed by Molson Coors, Harley-Davidson, Ford, and Lowe’s. These companies will no longer provide data to the nonprofit’s Corporate Equality Index, affecting how well they support the LGBTQ+ community. Diversifying the workplace has proven to enhance business, with LGBTQ+ consumers having buying power of $1.4 trillion.

Dropping their Corporate Equality Index scores by 25 points for rolling back DEI commitments, companies like Brown-Forman, Lowe’s, Ford, Molson Coors, Tractor Supply, and Harley-Davidson have taken a hit. This impacts their reputation with consumers and ability to recruit top talent from various backgrounds, risking overall company performance.

In a letter to Fortune 1000 companies, civil rights groups argue that neglecting diversity, equity, and inclusion responsibilities towards employees jeopardizes their economic success. A survey of 1,039 companies showed that those excelling in gender and ethnic diversity are 12% more likely to outperform others. Focusing on DEI is supported among employees and customers, making it vital for business success in diverse markets.



Read more at CNBC: Civil rights groups urge Fortune 1000 to protect DEI