Ford to revamp diversity policy, ends LGBTQ ranking participation

Ford revamps DEI: Ford Motor Co announced on Wednesday that it will revamp its diversity, equity, and inclusion (DEI) program, including ending its participation in an LGBTQ advocacy group's ranking system. This move aligns Ford with several other US companies that have recently adjusted their DEI programs in response to pressure from conservative groups.

In an internal memo, Ford CEO Jim Farley stressed the company's awareness of the diverse beliefs held by its employees and customers. "We are mindful that our employees and customers hold a wide range of beliefs, and the external and legal environment related to political and social issues continues to evolve," Ford CEO Jim Farley said in a memo to employees.

Top companies adjust DEI strategies

Several prominent US companies, including JPMorgan Chase and Harley Davidson, have recently altered their DEI strategies. This week, home-improvement giant Lowe's also joined the trend.

Corporate America intensified its focus on diversity initiatives following the 2020 protests against racial and gender disparities, sparked by the police killings of George Floyd and other Black Americans. 

However, some firms have recently pulled back on these programs, responding to pressure from conservative legal groups. These groups argue that DEI programs may constitute illegal discrimination and breach directors' duties to investors.

Opposition to diversity policies has gained momentum, particularly after the US Supreme Court's June 2023 ruling that struck down affirmative action in university admissions. 

While the ruling does not directly impact employers, it has emboldened those opposed to DEI initiatives. Advocates for greater diversity warn that this opposition threatens the progress of underrepresented groups in corporate leadership roles.

Former US President Donald Trump, currently running for re-election, has been a vocal critic of DEI initiatives.

Ford shifts focus inward

In his memo, Farley stated that Ford would prioritise employee and customer well-being over public commentary on polarising social issues. 

He also mentioned that the company's employee resource groups have shifted focus over the past year toward networking, mentorship, professional development, and community service.

Farley revealed that Ford had decided earlier this year to stop participating in certain external culture surveys, including those conducted by the LGBTQ advocacy group Human Rights Campaign and various best places to work lists.

"This isn't everything we want, but it's a great start. We're now forcing multi-billion-dollar organisations to change their policies," Starbuck said on the social media platform X (formerly known as Twitter).

(With Reuters Inputs)