Ford Motor Company is scaling back its diversity, equity, and inclusion (DEI) initiatives, joining a growing trend among major corporations. The automaker recently informed employees it’s reassessing its DEI policies in light of the changing social and political landscape.
In a memo to employees, Ford explained it has taken “a fresh look” at its DEI policies and practices over the past year to account for the evolving “external and legal environment related to political and social issues.” This marks a significant shift in Ford’s approach to workplace diversity.
CEO Jim Farley announced that Ford will no longer use quotas for minority dealerships or suppliers. He also clarified that the company doesn’t have hiring quotas.
Perhaps most notably, Ford will stop participating in the Human Rights Campaign’s Corporate Equality Index, which rates companies on their treatment of LGBTQ+ employees. In previous years, Ford had received a perfect score on this index.
The Human Rights Campaign expressed disappointment with Ford’s decision. Kelley Robinson, the organization’s president, stated, “Ford Motor Company’s shortsighted decisions will have long-term consequences. Hastily abandoning efforts that ensure fair, safe, and inclusive work environments is bad for business and leaves Ford’s employees and millions of LGBTQ+-allied consumers behind.”
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Ford isn’t alone in this trend. Other major companies like Tractor Supply, Harley-Davidson, and Lowe’s have also scaled back their DEI programs recently. These companies often cite conservative backlash or changing social environments as reasons for their decisions.
Big news: We were in the middle of investigating woke policies @Ford but this morning Ford confirmed to me that they’re making changes.
Here are the changes:
• Ending participation in the @HRC’s woke Corporate Equality Index social credit system.
• It sounds like there will… pic.twitter.com/LAIxUgNicV
— Robby Starbuck (@robbystarbuck) August 28, 2024
This shift represents a stark contrast from just a few years ago. After the 2020 Black Lives Matter protests, many companies, including Ford, ramped up their DEI efforts.
At that time, Ford stated, “We are not interested in superficial actions. This is our moment to lead from the front and fully commit to creating the fair, just and inclusive culture that our employees deserve.”
The Supreme Court’s recent decision to end affirmative action in colleges has put corporate DEI programs under increased scrutiny. Some conservative activists are pressuring companies to roll back these initiatives.
Derek Avery, an industrial and organizational psychologist, offers insight into this trend: “There is an old saying: If you give an inch, people take a mile, and that is essentially what we have seen when the Supreme Court made a ruling that was very specific to institutions of higher education.”
Avery also notes, “Conservative state attorney generals sent letters to corporations warning them that they could expect to be sued if they continue to advocate and promote DEI practices within their organizations that could be construed as counter to the Supreme Court ruling, even though the Supreme Court ruling had no bearing on those corporate initiatives.”
In its recent memo, Ford emphasized a new approach: “As a global company, 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 company added, “There will of course be times when we will speak out on core issues if we believe our voice can make a positive difference.”
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The coming months will likely see more companies following Ford’s lead as they get back to business rather than spend energy and money on flawed social policies.