Companies Risk Losing Customers and Employees as They Move Away From DEI

Companies including Tractor Supply Co. and John Deere publicly discontinued their diversity, equity and inclusion (DEI) programs this month. But research indicates they may be on the wrong side of public opinion and at risk of alienating customers and employees.

Despite the persistent drumbeat of conservative attacks on “woke capitalism,” around 6 in 10 U.S. adults say DEI programs are “a good thing,” according to a Washington Post–Ipsos poll released earlier this summer. “Support was even higher for specific programs such as internships for underrepresented groups and anti-bias trainings,” Taylor Telford, Emmanuel Felton and Emily Guskin wrote for the Post. 

Meanwhile, the business case for DEI is clear. Deloitte’s 2024 Gen Z and Millennial Report is among the recent research connecting corporate social and DEI policies with hiring and retention. “Reasons for rejecting an employer or an assignment include factors such as having a negative environmental impact or contributing to inequality through non-inclusive practices,” the report reads.

DEI on the ropes

Favorable public opinion aside, some business leaders are pulling back on their DEI commitments in response to rhetoric. In a recent opinion piece for Inc., human resources consultant Suzanne Lucas cited partisan politics at work while noting Zoom, Snap, Meta, Tesla, Home Depot and Wayfair among the leading firms to hit their DEI staff disproportionally during recent layoffs.“This is even though most Americans support DEI,” she wrote. 

Among those taking credit for Tractor Supply’s about-face on DEI is the social media influencer Robby Starbuck. The conservative activist also deployed his X (formerly Twitter) account to target John Deere and Harley-Davidson for boycott, referencing Bud Light in a threatening message posted over the weekend.

“Hey @harleydavidson @JohnDeere are you two looking at this?” Starbuck wrote, drawing attention to a chart showing a sharp decline in Bud Light sales following the launch of last year’s boycott. “This is your future if you don’t make full turnarounds on wokeness. Going woke will absolutely destroy your companies.”

The post followed a more elaborate message on July 23, in which Starbuck posted a nine-minute video to his 521,000 followers on X, pressuring Harley-Davidson to drop its DEI policies.

The inclusion solution

Harley-Davidson has yet to respond publicly, but at least one of the company’s authorized dealers has thrown attention back on Starbuck and his own money trail.

“His baseless accusations against Harley-Davidson are part of a broader pattern of sensationalism aimed at monetizing outrage,” the Vermont dealer Wilkins Harley-Davidson posted to its website in a lengthy public response to Starbuck on Friday. “HD is inclusive. Isn’t that what we want of all employers these days?” 

With that statement, Wilkins Harley-Davidson reflects a broader trend emerging in response to anti-DEI rhetoric centered on the common-sense assumption that inclusion is a popular concept for most Americans.

“The fundamental factors that have made diversity a strategic priority for corporate leaders remain unchanged,” Villanova University business professor Corinne Post wrote on Forbes this week. 

And she brought the demographic receipt, noting a widening talent gap as workforce participation declines in the U.S. Among other factors, white male workers are aging out while younger women and minorities are achieving the higher education qualifications needed to fill high-skill jobs.

“Finding ways to integrate a wider variety of workers into the workforce is a common-sense strategy for addressing talent shortages,” Post wrote.

Observations like these will be put to the test by voters this year. As the 2024 presidential campaign heats up, the presumptive Democratic nominee is Vice President Kamala Harris — who, despite her long list of qualifications for the role, has been referred to as a “DEI hire” and a ding dong by Republican lawmakers.