Ford Motor Co. recently made the decision to scale back its diversity, equity, and inclusion (DEI) policies, joining a growing list of companies facing pressure from conservative groups. Ford CEO Jim Farley announced the changes in a memo to employees on Wednesday. The memo stated that Ford would no longer participate in external culture surveys or the annual survey by the Human Rights Campaign, which measures workplace inclusion for LGBTQ+ employees.
According to the memo, Ford’s focus will shift towards prioritizing its customers, team, and communities, rather than publicly commenting on divisive issues. However, Farley emphasized that there may still be instances where the company will speak out on core issues if it believes it can make a positive impact. Farley acknowledged that Ford’s employees and customers hold a diverse range of beliefs, and the political and social landscape is continuously evolving. He mentioned that the company has been reviewing its policies over the past year and affirmed that Ford remains committed to fostering a safe and inclusive workplace.
The decision by Ford to scale back its DEI initiatives reflects a broader trend seen in Corporate America. Following nationwide protests against racial and gender disparities in leadership in 2020, many companies initially intensified their focus on diversity and inclusion programs. However, some organizations have subsequently faced pressure to backtrack on these initiatives due to conservative legal organizations and shareholder letters accusing them of illegal discrimination and breaching directors’ duties to investors.
This opposition to DEI initiatives has been bolstered by the U.S. Supreme Court’s ruling in June 2023, which struck down affirmative action in university admissions. Although this ruling does not directly impact employers, it has energized groups that oppose diversity policies. Advocates for greater diversity argue that this opposition to DEI threatens the progress made by underrepresented groups, particularly in leadership roles within corporations.
Former President Donald Trump, a Republican candidate for U.S. president, has been a vocal critic of DEI initiatives. Conservative political commentator Robby Starbuck, known for targeting companies such as Lowe’s, Tractor Supply, and John Deere, recently investigated Ford’s policies and shared Farley’s memo on social media. Ford confirmed the authenticity of the memo but declined to provide further comment.
The Human Rights Campaign, in response to Ford’s decision, criticized the company for abandoning its values and policies. The organization accused Ford of failing to fulfill its financial duty to recruit and retain top talent from a diverse talent pool. They argued that this shortsighted decision would negatively impact the company’s long-term business success.
Ford’s decision to scale back its DEI policies aligns with the actions taken by other companies in response to the Supreme Court ruling and conservative backlash. Conservative groups view this as a victory, claiming credit for pressuring multi-billion dollar organizations to change their policies. While supporters of diversity and inclusion express concern about the potential setback for underrepresented groups in the corporate world, the debate surrounding DEI initiatives continues to evolve, reflecting the ever-changing social and political landscape.