If it’s not cis, white, and male, it’s not for corporate America.
Over the past year, a growing number of major companies have abandoned their Diversity, Equity, and Inclusion (DEI) programs, a shift driven largely by pressure from right-wing political groups. Once considered essential to promoting fairness and preventing discrimination, DEI efforts have come under fire from conservative activists who accuse corporations of catering to “woke” ideology. Now, with companies like Molson-Coors, Harley-Davidson, Ford, Lowe’s, and others following this trend1, the LGBTQ+ community is left wondering: what does this mean for us? What now?
When DEI Was “Good Business”
In the wake of the 2020 racial justice movements and amid the corporate world’s public embrace of Pride and other progressive causes, DEI was widely touted as the future of responsible business. These programs often included support for marginalized groups, including women, people of colour, and LGBTQ+ individuals, while also fostering a more inclusive workplace culture. DEI offices played key roles in advancing gender-inclusive policies, creating safe spaces, and combating workplace discrimination.
However, the roots of DEI go much deeper. In the early 2000s, as the push for same-sex marriage gained momentum and anti-discrimination laws began to expand, companies were increasingly expected to protect LGBTQ+ workers from bias and harassment. These changes didn’t come easily—landmark legal battles, such as Bostock v. Clayton County2, were pivotal in securing basic protections for queer employees. DEI programs became crucial in ensuring that the progress made through court rulings translated into day-to-day safety and inclusivity in the workplace. For many, DEI wasn’t just a corporate buzzword—it was a way to protect vulnerable employees in real, tangible ways.
By stepping away from DEI, companies risk signaling that LGBTQ+ employees—and marginalized groups more broadly—aren’t worth the fight or the money.
But now, under sustained attack from conservative factions, especially on social media, many corporations are backpedaling. In 2024 alone, seven major companies, including Molson Coors and Caterpillar, have announced the scaling back of their DEI programs after facing blowback from online conservative campaigns.
This is all happening despite numerous studies3 4 5showing that diverse and inclusive workplaces lead to better decision-making, increased innovation, and higher employee satisfaction. According to a McKinsey report6, companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability compared to companies in the fourth quartile. The takeaway from these studies? By scaling back on DEI, companies risk stifling innovation and falling behind in an increasingly competitive market.
Why It Matters for the LGBTQ+ Community
The retreat from DEI isn’t just about a business pivot—it’s an abandonment of a moral imperative and protections that many queer employees rely on. DEI programs often serve as the front line in pushing for inclusive hiring practices, addressing workplace bias, and ensuring that LGBTQ+ employees have resources like gender-neutral bathrooms and inclusive healthcare policies.
By stepping away from DEI, companies risk signaling that LGBTQ+ employees—and marginalized groups more broadly—aren’t worth the fight or the money. In conservative states where anti-LGBTQ+ legislation continues to gain ground, this feels like an additional betrayal. Companies that initially championed diversity are now leaving vulnerable workers more exposed to discrimination without the support these programs once provided, all in the name of their bottom line.
These corporations are crumbling to short-term political pressure, but this raises some questions: how will this play out in the long term, and when did diversity in the workplace move from being a necessity of doing business with integrity to being a “nice-to-have?7” Are these companies simply opting out of the long-term benefits of a diverse workforce, or is there something more sinister at work here?
The recent rollback of DEI initiatives can be attributed to various factors. Economic uncertainties, political polarization, and societal backlash against perceived “wokeness” have made some companies wary of continuing their investments in DEI. Ford, for instance, has faced criticism from some customer segments who argue that DEI initiatives are unnecessary or divisive. In a similar vein, Harley-Davidson and Lowe’s have quietly retracted certain DEI programs, reflecting a broader hesitation in the corporate world8.
Additionally, queer consumers, who have often driven the market success of brands seen as supportive, may feel similarly betrayed. Harley-Davidson, once praised for its inclusive messaging, is now facing backlash for appeasing anti-DEI sentiment. LGBTQ+ boycotts are becoming more than just theoretical—advocacy groups are beginning to mobilize against these corporations, demanding accountability.
Corporate Responsibility in the Crosshairs
It’s hard not to see this as part of a broader cultural rollback, one where the aggressive push from far-right groups is forcing companies to reconsider their commitment to progressivism. These groups have gained substantial influence by using social media to target businesses with coordinated backlash campaigns. Their message? Drop the “woke” agenda or risk losing customers.
For now, companies are calculating whether alienating progressives and marginalized communities is a worthy trade-off for quieting the conservative noise. But with the LGBTQ+ community making up a significant portion of the modern consumer base, such decisions may have lasting financial and cultural repercussions.
Boycotts Brewing?
This isn’t the first time companies have found themselves caught between their principles and profit margins. Back in 2017, following backlash over its political leanings, Starbucks faced boycotts from both conservative and liberal consumers9—though the company rebounded after doubling down on its commitment to diversity.
But today, with the culture wars burning hotter than ever, the LGBTQ+ community might not be so forgiving. Online campaigns for organized boycotts of companies that abandon DEI are already taking shape. Advocacy groups, emboldened by the recent surge of anti-trans legislation, are ready to hold these corporations accountable, citing that a failure to support diversity initiatives is a failure to support their customers and employees.
Brands that were once praised for their Pride campaigns may now face backlash for what appears to be a selective, insincere commitment to inclusion—only when it’s convenient and profitable.
What’s Next for DEI?
Corporate responsibility and genuine allyship are in the spotlight. For companies looking to avoid backlash, the message is clear: abandoning DEI could alienate both LGBTQ+ employees and consumers, damaging their brand’s long-term reputation. In an era when social justice, inclusion, and equity is no longer a side issue but a central concern for millions, companies will have to decide if they’re ready to weather the storm.
Meanwhile, LGBTQ+ workers, activists, and allies are watching closely. Corporate decisions made in the boardroom will be felt in the breakroom, and for many, the loss of DEI means the loss of security.
As companies face pressures to pull back from DEI initiatives, it’s crucial for leaders to consider the long-term implications of such decisions. Rather than succumbing to short-term pressures, companies should view DEI as an investment in their future—a strategy that will pay dividends in the form of innovation, employee satisfaction, and a positive brand image10. A retreat from DEI may seem like a quick fix to appease certain critics, but it overlooks the broader benefits that diversity and inclusion bring to the table.
In an ever-evolving global market, companies that stay committed to DEI will not only stand out as socially responsible but will also position themselves for sustainable success. The challenge is for companies to have the vision and courage to stay the course, even when it’s not the easy path to take. After all, the true measure of a company’s commitment to DEI is not just in times of popularity but in times of adversity.
The takeaway? We need to support initiatives that promote corporate accountability and create public pressure to prevent further backsliding on hard-fought LGBTQ+ rights. If companies can so readily abandon diversity for profit, it’s time we show them what loyalty really costs.
- https://www.cnn.com/2024/08/29/business/ford-dei-policies-robby-starbuck/index.html ↩︎
- https://www.supremecourt.gov/opinions/19pdf/17-1618_hfci.pdf ↩︎
- https://www.claremontlincoln.edu/12-reasons-why-diversity-equity-and-inclusion-are-important-in-business/ ↩︎
- https://hbr.org/2020/11/getting-serious-about-diversity-enough-already-with-the-business-case ↩︎
- https://online.uncp.edu/degrees/business/mba/general/diversity-and-inclusion-good-for-business/ ↩︎
- https://www.mckinsey.com/~/media/mckinsey/featured%20insights/diversity%20and%20inclusion/diversity%20wins%20how%20inclusion%20matters/diversity-wins-how-inclusion-matters-vf.pdf ↩︎
- https://www.forbes.com/sites/paologaudiano/2023/10/09/why-the-backlash-against-dei-is-an-opportunity-to-get-better/ ↩︎
- https://www.nbcnews.com/business/business-news/lowes-becomes-later-paring-back-dei-efforts-rcna168380 ↩︎
- https://time.com/money/4651292/starbucks-boycott-hiring-refugees/
↩︎ - https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/its-past-time-to-get-strategic-about-dei ↩︎