Ford to Microsoft: Why are companies dropping DEI policies in 2024

Diversity, equity, and inclusion (DEI) initiatives were designed to foster more equitable workplaces, where employees from all backgrounds could thrive. However, 2024 is witnessing a dramatic shift: major corporations are scaling back or entirely dismantling their DEI programs. What’s driving this reversal, and what does it mean for the future of workplace diversity?

The recent rollback of DEI policies in several prominent companies is raising eyebrows. Ford Motor Co. announced that it would no longer participate in an annual survey from an LGBTQ advocacy group and would not use quotas for minority dealerships and suppliers. This move followed similar actions by JPMorgan Chase, Harley-Davidson, and Lowe's, which also altered their DEI initiatives.

Additionally, Starbucks, Tractor Supply, and John Deere are among the corporations that have made significant changes to their DEI strategies in 2024. Starbucks dropped a bonus linked to DEI goals, Tractor Supply stopped submitting data to the Human Rights Campaign, and John Deere decided to discontinue its support for external social or cultural awareness events.

This wave of change is not confined to these companies alone. Other big names, including Microsoft, Google, and Meta, have also reduced the scope of their DEI programs. A CNBC report highlighted that DEI-related job postings declined by 44% by mid-2023 compared to the same period in 2022, signalling a broader trend of diminished emphasis on diversity initiatives.

One of the driving forces behind this trend is Robby Starbuck, a former Hollywood music video director turned activist. Starbuck has gained significant traction online, campaigning against DEI programs, LGBTQ advocacy, and climate change initiatives. His activism taps into a growing wave of right-wing hostility towards DEI policies and corporate social responsibility efforts.

Starbuck’s campaign has particularly targeted brands like Harley-Davidson, Tractor Supply Co., and John Deere, which are popular among politically conservative consumers. His influence is evident in the decisions of these companies to scale back their diversity and inclusion programs. Starbuck argues that many DEI initiatives were implemented haphazardly and that the current rollback exposes the fragility of corporate commitment to diversity.

Shaun Harper, a professor at the University of Southern California, echoes this sentiment, suggesting that the ease with which these programs are being dismantled indicates a lack of genuine commitment from the outset. “If one person can take to Twitter and ultimately inflame a campaign to dismantle DEI in large companies, it means those things were not strong to begin with,” Harper says.

The broader landscape

The rollback of DEI policies is not occurring in a vacuum. It is part of a broader political and cultural shift in the United States and other parts of the world. Conservative groups have increasingly criticised DEI programs as unnecessary and even harmful, arguing that they impose quotas and encourage discrimination against majority groups. This sentiment has gained momentum, leading to a reevaluation of these initiatives by corporations.

In addition to pressure from activists like Robby Starbuck, companies are also responding to changes in the political environment. The conservative backlash against DEI has made some organisations wary of the potential risks associated with maintaining or expanding these programs. The growing polarisation around issues of race, gender, and sexual orientation has led companies to reconsider their approach to diversity.

The rollback is not just about political pressure; economic factors are also at play. Many companies are grappling with the aftermath of the COVID-19 pandemic, which led to widespread layoffs and restructuring. In the face of economic uncertainty, some organisations have prioritised cost-cutting measures, including reducing or eliminating DEI roles.

For example, last year, Google and Meta scaled back their DEI programs as part of broader restructuring efforts. Similarly, Microsoft, despite pledging $150 million towards DEI initiatives, has also faced scrutiny over its commitment to diversity in the face of economic pressures.

The decline in diversity at entry levels

The pullback of DEI policies is already having a tangible impact on workforce diversity, particularly at the entry level. Research by Rockborne, a company owned by specialist data and analytics recruiter Harnham Group, found a significant decline in the proportion of entry-level female professionals in the data industry. In the U.S., the number of women entering the profession fell from 36% in 2022 to just 12% in 2023.

The decline is not limited to gender diversity. The proportion of entry-level Black, Asian, and Minority Ethnic professionals in the UK plummeted from 42% in 2022 to 12% in 2023. In the U.S., the percentage of Black, Indigenous, and people of colour at entry-level positions dropped sharply from 70% in 2022 to 11% in 2023.

Amy Foster, a Partner and Director of Talent at Rockborne, attributes this decline in part to the disproportionate impact of COVID-19 on younger generations, who have faced significant hiring cutbacks. The trend suggests that the rollback of DEI policies is already affecting the diversity of talent pipelines, which could have long-term implications for organisations.