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Major Companies Scale Back on Diversity, Equity, and Inclusion Initiatives

Big Corporations Reassess Commitment to Diversity and Inclusion Efforts

Amazon

Google is eliminating its hiring targets for representation.

Google informed employees in February that it will no longer set hiring goals linked to representation. The company is also assessing its DEI programs and initiatives, particularly “those that pose a risk, or that aren’t as impactful as we had envisioned,” stated Google’s chief people officer, Fiona Cicconi, in a memo to staff. “We’re dedicated to fostering a workplace where every employee can thrive and has equal opportunities. Over the past year, we’ve been reviewing our programs aimed at achieving this,” a Google spokesperson conveyed to BI. The spokesperson noted that Google modified the language in its annual 10-K report to reflect this transition. “As a federal contractor, our teams are also reviewing changes necessary following recent court decisions and executive orders related to this matter,” the spokesperson added.

Target

McDonald’s paused some of its DEI efforts in January.

Fast food giant McDonald’s is among the major American corporations that are rolling back some of their DEI initiatives. The company announced in a press release on January 6 that it would cease setting representation goals, suspend participation in external DEI-related surveys, and eliminate a requirement for supply chain partners to meet DEI targets. The company’s diversity team will also undergo a name change, now being called the “Global Inclusion Team.” Despite these changes, McDonald’s emphasizes that inclusion continues to be one of its “core values.” Representatives from McDonald’s did not respond to a request for comment from BI received after regular working hours.

Harley-Davidson

Polaris was not a target of Starbucks, but chose to cut DEI efforts in a bid to abstain from political conversation.

Although Starbucks did not specifically target Polaris, the Harley-Davidson competitor has opted to diminish its DEI efforts, including the removal of any reference to the term from its web pages. In a statement to Bloomberg, the company highlighted its commitment to abstaining from political discourse.

Lowe’s

Molson Coors is pulling back on DEI policies, including supplier diversity quotas and DEI-based company training programs.

Beverage producer Molson Coors is discontinuing many of its DEI policies and initiatives, as reported by CNBC in September. An internal memo obtained by BI indicated that Molson Coors will eliminate quotas for supplier diversity, which encourage sourcing from minority or women-owned businesses, citing that such quotas can be “complicated and influenced by factors outside” the company’s control. Moreover, the company announced it would shift training away from DEI-based programs to emphasize key business objectives. According to the memo, the decision to scale back, which had been in progress since March, was made to ensure that executive compensation is based only on business performance, excluding “aspirational representation goals.” Molson Coors will also cease participation in the HRC Equality Index and other third-party company rankings, CNBC reported. Previously, the company had received a perfect 100-point score for 19 consecutive years. The memo added that the impetus for the change was, “the understanding that when all our people know they are welcome, they are more engaged, motivated, and committed to our company’s collective success.” Survey results published by the HRC in September indicated that over 75% of adults from the LGBTQ+ community view companies that have rolled back DEI initiatives unfavorably. The HRC’s Gonzales remarked that the LGBTQ+ community holds over $1.4 trillion in spending power in the U.S. and seeks to “work for and support companies that support us.” The companies did not respond to BI’s inquiries for comment.

Walmart

Citigroup renamed its DEI team.

Citigroup’s CEO Jane Fraser sent a memo to staff at the end of February stating that the bank would rebrand its diversity, equity, and inclusion team as “talent management and engagement.” The memo also indicated the removal of “aspirational representation goals, except as mandated by local law.” Furthermore, job candidates and interview panels are no longer required to exhibit diversity, the memo noted.

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