For years, large American companies announced that they would champion DEI ( Diversity, Equity, and Inclusion) plans to treat groups that had been underrepresented or discriminated against because of their identity or handicaps. The Wall Street Journal recently mentioned a few of these companies that had backed away from their policies in an article titled “Corporate America Drew Back From DEI. The Upheaval Isn’t Over.” Ford Motor (NYSE: F | F Price Prediction) and Walmart (NYSE: WMT) were at the top of the newspaper’s lists.
Among the reasons given most often for the pullback was activism by some customers and employees. Another reason is court decisions about DEI practices. Yet another is the belief that the new Trump Administration will pressure companies to drop DEI policies.
Ford, in particular, was singled out by the Journal. The issues around Ford are complex. The Journal reported the car company “would stop providing workplace data to the gay-rights lobbying group, which spent decades persuading big companies to embrace policies hospitable to lesbian, gay, bisexual, transgender and queer employees and customers.” Ford CEO Jim Farley wrote the reason for Ford’s change in attitude was “external and legal environment related to political and social issues.” Ford had been given very high ratings for years by a gay rights lobbying group called Human Rights Campaign.”
Is the attack on Ford fair? America’s No.2 car company says it is not. Farley said Ford is committed to an “inclusive workspace.” But why retreat from an organization that supported LGBTQ rights?
Ford had an alternative option. That was not to change its policy or relationships with outside rights groups. Instead, it has decided to deal with many negative reactions from media organizations, including USAToday, Axios, and Fast Company. Ford had to know the backlash was coming but decided to change its policies anyway.
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