Changes in Ford’s Diversity, Equity, and Inclusion Program

By Ananya Mariam Rajesh, David Shepardson, and Nora Eckert

Ford Motor Company announced on Wednesday plans to alter its diversity, equity, and inclusion (DEI) program, including terminating participation in an LGBTQ advocacy group’s ranking system, amidst pressure from conservative entities.

CEO Jim Farley emphasized the awareness of varying employee and customer beliefs, alongside the evolving political landscape, in a memo to staff. Several U.S. firms, such as JPMorgan Chase and Harley Davidson, have recently revised their DEI policies, with Lowe’s also changing its approach this week.

Following the police killings of George Floyd and other Black Americans in 2020, corporate America increased its commitment to diversity initiatives. However, recent responses to pressure from conservative legal organizations have led some companies to rethink these programs. Critics argue DEI initiatives have sometimes resulted in illegal discrimination, and some have faced shareholder letters claiming breaches of fiduciary duties.

The opposition has gained momentum, especially following the U.S. Supreme Court’s June 2023 ruling that invalidated affirmative action in university admissions. While this ruling does not directly impact employers, it has raised fears about the future of diversity efforts. Former President Donald Trump has publicly criticized DEI initiatives.

Farley stated that Ford’s focus will shift to prioritizing employee and customer care over participating in divisive societal issues. The company’s employee resource groups will now concentrate on networking, mentorship, professional development, and community service.

Ford decided to withdraw from several external culture surveys, including one by the Human Rights Campaign and various ‘best places to work’ lists. Kelley Robinson, president of the Human Rights Campaign, criticized Ford’s decision, claiming it neglects their responsibility to recruit and retain diverse talent.

Robby Starbuck, a conservative activist, shared the memo with Reuters, confirming its accuracy. He remarked on social media that this change is a significant step in influencing major corporations to reevaluate their policies, despite not achieving all desired outcomes.