Anti-DEI movement gaining steam as Ford exits LGBTQ+ index
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Several major companies are no longer publicly committing to a longstanding corporate pledge to provide a beneficial work environment to LGBTQ+ employees.
Why it matters: It's a concrete sign of how the anti-DEI movement is roiling corporate America.
Driving the news: Ford today confirmed it's the latest company to withdraw from the Human Rights Campaign's Corporate Equality Index amid pressure from a right-wing activist.
- Ford CEO Jim Farley told workers in a letter that the automaker had withdrawn from the index and won't participate in other "best places to work" lists, saying Ford will still foster "an environment where all of us can do our best work anchored in respect and inclusion."
- Harley-Davidson and Jack Daniel's owner Brown-Forman also confirmed they're no longer participating.
- Lowe's, which did not respond to requests seeking comment, has reportedly pulled out of the HRC index too.
Zoom in: Once something companies openly bragged about, a perfect 100 score on the HRC index is the gold standard for companies that want to prove they're committed to LGBTQ+ causes.
- But the scoring system is increasingly being swept up in a conservative campaign to punish companies that remain invested in diversity, equity and inclusion initiatives.
- Other companies that have recently said they're no longer adopting DEI programs include John Deere and Tractor Supply.
- At Brown-Forman, which launched its diversity and inclusion strategy in 2019, the company is evolving its approach now that "the world has evolved, our business has changed, and the legal and external landscape has shifted dramatically, particularly within the United States," spokesperson Elizabeth Conway said in an email.
How it works: The HRC Corporate Equality Index scores companies based on a wide variety of categories, including nondiscrimination policies, spousal and partner benefits, transgender-inclusive benefits, and engagement with the LGBTQ+ community.
- In the 2023-24 index, more than 1,380 companies provided enough information to receive a score, including 378 of the Fortune 500.
- Nearly 600 got a perfect score, including Apple, Amazon, AT&T, Bank of America, CVS, Disney, Ford, General Motors, Google, IBM, JPMorgan Chase, Microsoft, Procter & Gamble, Toyota and Walmart.
What they're saying: The HRC declined to discuss how many companies have recently exited the index, but VP of corporate citizenship and inclusive technology Eric Bloem downplayed the trend and said the overall number is growing.
- "We're talking about a handful of businesses," he told Axios in an interview. "It's a fraction" of the participants.
Context: One of the major forces behind the anti-DEI push is right-wing activist Robby Starbuck, who claimed credit for Lowe's and Ford ditching HRC and other Pride initiatives after threatening to "expose their woke policies."
- "We're now forcing multi-billion dollar organizations to change their policies without even posting just from fear they have of being the next company that we expose," Starbuck said on X.
HRC's Bloem acknowledged that "businesses are under pressure" from online activists but said it's still in their best interests to remain committed to the LGBTQ+ community instead of making "shortsighted" decisions.
- "Long-term business success really means focusing on and embracing those values of inclusion," Bloem said. Businesses that continue to participate in the index "understand that LGBTQ+ people, employees and customers are critical to the success of their business."
- He said companies that abandon LGBTQ+ commitments will find it particularly hard to appeal to younger consumers and employees.
- More than 1 in 5 members of Gen Z identify as something other than heterosexual, according to a recent Gallup survey.
