‘Value-Destroying And Costly’: Is Corporate America’s Love Affair With DEI Finally Coming To An End?

Bud Light’s pours reportedly declined in thousands of bars and restaurants across the U.S. after the brand partnered with transgender influencer Dylan Mulvaney in 2023. The company lost $1.4 billion in U.S. beer sales in 2023 due to boycotts over the marketing decision, according to Forbes.

“We are starting to see not only in the customer backlash to the actual substance of these DEI programs, but also in the market reactions how costly this stuff is — how pernicious, value-destroying and costly it is,” Padfield told the DCNF.

The Biden-Harris administration has led a massive push for increased DEI initiatives in the government, including President Joe Biden signing an executive order in June 2021 that established “a government-wide initiative to advance diversity, equity, inclusion, and accessibility” in the federal workforce. Some major companies have begun scaling back on DEI practices this year amid growing backlash, including Walmart, Boeing, Lowe’s and Ford Motors.

Ford Motors announced in August it would scale back its diversity policies, including vowing to stop participating in “external culture surveys.” Automakers such as Ford have faced challenges in the electric vehicle (EV) market amid lackluster consumer demand. Ford reported a $1.3 billion loss on its EV line in the first quarter. The automaker announced in August that it was canceling plans to build a three-row electric SUV and also pushed back its plans to release an electric pickup truck model until 2027.

Top airline manufacturer Boeing axed its DEI entire division in October amid union strikes, significant financial losses and scrutiny over various safety issues. One of the company’s highly-scrutinized safety issues was a door plug being ripped off on a 737 Max 9 aircraft during an Alaska Airlines flight in January that led to a federal investigation.

Some activist investors have criticized Target for its “woke” policies, Fox Business reported. The retailer’s stock prices also dropped in 2016 amid boycotts after it introduced a policy allowing customers to choose the dressing room or restroom that aligned with their gender identity.

“I think that it is critical to point out how it is the actual nature and substance of DEI once it is exposed to sunlight that has forced these companies to retreat,” Stefan Padfield, executive director of the National Center’s Free Enterprise Project, told the DCNF.

Several of America’s biggest brands backpedaled on their diversity, equity and inclusion (DEI) policies and programs in 2024 amid intense public scrutiny and fierce consumer backlash.

President-elect Donald Trump’s return to the White House next year could impact DEI initiatives across the country, as he has criticized DEI practices and promised to uproot “woke” ideology. In November, dozens of investment advisors sent letters warning several of America’s largest companies that their diversity programs will become a liability when Trump returns to the Oval Office.

“Practically the only entity that continued to embrace DEI is the Biden administration, which committed itself in the very beginning from the first executive order,” Gonzalez added.

Boeing CEO Kelly Ortberg announced plans in October to slash the company’s workforce by 10% amid the company’s various financial and operational challenges. Following Boeing’s decision, one insider told City Journal in November that “when you start to focus on delivering value instead of preserving status, it becomes obvious what drives value, and it’s not DEI.”

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