Corporate boards brace for DEI backlash
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Illustration: Annelise Capossela/Axios
Corporate executives and boards are ramping up communication efforts to prepare for attacks from activists linking business performance to DEI policies.
Why it matters: For some public companies, it is not a matter of if these politically motivated attacks will come, but when.
Catch up quick: Harley-Davidson and John Deere have both walked back their commitment to diversity, while Tractor Supply has pulled the plug on diversity and environmental efforts following a social media campaign led by conservative activist Robby Starbuck.
- As part of the anti-DEI campaign, the activists have scraped the social media accounts of executives and board members in search of comments about LGBTQ+ rights, sustainability and DEI.
State of play: To prepare for this new type of professional doxxing, corporate boards are sharing more about their operational decisions and personal credentials with investors, employees and consumers.
What they're saying: Board members often seek to challenge management and provide robust oversight, says Townsend Belisle, founder and CEO of strategic communication and production company Haystack Needle. Ironically, though, they might be the ones facing challenges because of their online presence, or lack thereof.
- Belisle says the business of monitoring and enhancing the digital footprint of board members has doubled in the past year.
- "Controlling and managing digital reputation is crucial for executives as their public image can significantly impact their career and the organization they represent," he said. "If they don't control their own personal narrative, others will."
The big picture: Right-wing activists have now forced a reversal of policies for three major American brands, and this will likely emboldened them to target others.
- There has also been an uptick in activist investors challenging ESG and DEI-related policies.
Between the lines: Some companies are more susceptible to anti-DEI pressures than others, says Gravity Research President Luke Hartig.
- "Any B2C brand with a conservative-leaning consumer base should definitely be worried, while brands with a more progressive consumer base are generally safe because the base is not as receptive to the anti-DEI arguments," he added.
Yes, but: Going back on a commitment — or appearing wishy-washy — is likely to damage corporate reputation.
- "This can be the kiss of death because it alienates everyone," one crisis communications expert said.
By the numbers: The decisions by Tractor Supply, John Deere and Harley-Davidson to revoke DEI policies have garnered more attention than the attacks coming from its top critic.
- The policy reversals saw 77% more media mentions and roughly 40% more social media interactions than Starbuck's initial anti-DEI campaigns, according to Newswhip data shared with Axios.
Reality check: Research continues to show that companies with diverse workforces outperformed their less diverse competitors by an average of 29% per year.
- Plus a majority of employees (56%) believe that diversity in the workplace is a good thing, per a Pew Research study.
What to watch: In the same way companies have started to change how they tout ESG, they are also starting to change how they talk about DEI.
More in Axios: When DEI gets downgraded to I&D
