The Human Rights Campaign is warning companies that abandon diversity, equity, and inclusion efforts that they may face consequences both toward business success and among LGBTQ consumers. The national LGBTQ rights organization has seen companies pull back from workplace inclusion policies.
As Axios reported, a number of companies have announced they'll no longer be participating in HRC's corporate equality index — long a gold-standard of gauging a business's commitment to LGBTQ equality. These include Tractor Supply, Harley-Davidson, Jack Daniels, Lowes, Molson Coors, and Ford Motor Company.
Only Molson Coors returned the Bay Area Reporter's request for comment by press time, sharing an internal memo on the subject.
"In March our HR team began rolling out the next steps of our culture journey, centered on an evolution from our work focused on DEI to a broader view in which all our employees know they are welcome," the memo states. "The driving force behind this shift 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."
The memo continues, "With all U.S. employees having participated in our previous DEI-based training programs, these programs have been completed," and that the company will be using its own internal metrics to measure its success at being a welcoming environment.
"We will no longer participate in any voluntary 'best of' third-party company rankings in the U.S., including the HRC corporate equality index," it states. "This will not impact the benefits we provide our employees, nor will it change or diminish our commitment to fostering a strong culture where every one of our employees knows they are welcome at our bar."
The corporate decisions come amid a backlash against DEI efforts instituted during and after 2020's reckoning on racial justice after the murder of George Floyd by a Minneapolis police officer.
The move also comes as HRC announces record participation in its upcoming 2025 corporate equality index — over 1,400 companies — and promises to ding the equality scores of businesses that withdrew from participating.
HRC President Kelley Robinson, a queer Black woman, stated that "we need to tell the whole story."
"There are a handful of companies that are making these poor, short-sighted decisions and it's our responsibility to hold them accountable," she stated. "What I want to make clear is this is not where the majority of the companies are. It's not just out of the kindness of their heart, it is because they know that this is what their workforce and consumers demand. Bottom line, this is the best thing to do for businesses. That's why we're seeing so much energy from employees, consumers, and shareholders starting to push back on the decisions these few companies have made."
USA Today reported that some of these companies had been targeted on social media for past DEI initiatives by Robby Starbuck, a Republican former candidate for the House of Representatives in Tennessee. Starbuck is also the maker of a film, "The War on Children," which premiered on X earlier this year and is opposed to medical care related to gender transition. It also features Chaya Raichik of Libs of TikTok and Riley Gaines, a former competitive swimmer for the University of Kentucky who sued the NCAA after she tied for fifth place with Lia Thomas, the first trans woman to win an NCAA Division I national championship.
HRC responded by issuing a letter to Fortune 1000 executives alongside other civil rights groups, including the NAACP and the National Organization for Women, on September 19.
"Recently, some CEOs have caved and announced their company's divestment from diversity, equity, and inclusion efforts," the letter states, in part. "These capitulations weaken businesses and the American economy more broadly. And, these shortsighted decisions make our workplaces less safe and less inclusive for hard-working Americans. Meanwhile this exposes businesses to legal risk by increasing the likelihood of bias and discrimination within organizations."
The letter continues by alleging that "abandoning DEI will have long-term consequences on business success — ultimately shirking fiduciary responsibility to employees, consumers, and shareholders. Businesses that fail to include women, people of color, people with disabilities, and LGBTQ+ people neglect their financial duty to recruit and retain top talent from across the full talent pool and limit their company's performance overall."
The letter cited a 2020 report from McKinsey and Co., "Diversity Wins: How Inclusion Matters." The report, a survey of 1,039 companies with at least $15 billion in annual revenue, showed that companies at the top quartile of gender and ethnic diversity were 12% more likely to outperform all other companies.
Eric Bloem, HRC's vice president of programs and corporate advocacy, blamed "online misinformation and inflammatory rhetoric" for the anti-DEI push.
"The majority of companies know that an inclusive workplace and serving a broad, diverse customer base is critical for their success," Bloem stated. "That's why over 1,400 companies — a new high — are participating in HRC's 2025 Corporate Equality Index. Short-sighted decisions to abandon DEI initiatives will have a lasting, negative impact on business success in a future where more people than ever are identifying as LGBTQ+."
Todd G. Sears, a gay man who is the founder and CEO of Out Leadership, an LGBTQ business group, told the B.A.R. that "metrics like the Corporate Equality Index have really pushed companies to adopt LGBTQ+ inclusive policies over the last 20 years and those changes are here to stay. It would be nearly impossible for companies to roll back non-discrimination protections and benefits now.
"As businesses navigate today's complex political landscape, we should focus on the real actions they're taking rather than just how they market themselves," he continued. "Companies will keep investing in LGBTQ+ equality because it's good for business — they want to place the best people in the best roles, regardless of sexual orientation or gender identity."
HRC and the civil rights groups' letter also cited a 2024 Edelman survey that found that 60% of people say an inclusive work culture with a diversity program is important to them.
"We welcome your partnership and understand the safety risks posed by bad actors are serious — these are threats that impact us all," the letter continued. "Backing down from long-standing commitments only serves to empower those who threaten your workers and customers. We call on business leaders to speak out publicly, defending decades long, pro-business decisions to support inclusion. Your trusted voices together will future proof the business community against anti-business, politically motivated extremists."
HRC also released data from its 2024 LGBTQ+ Climate Survey showing 80.1% of LGBTQ+ adults would boycott a company that rolled back DEI initiatives, "including stopping shopping at, utilizing, and/or purchasing its services," according to a news release.
Over three-quarters (75.7%) of LGBTQ+ adult respondents stated that they'd have a less favorable opinion of a company that rolled back DEI initiatives, and over half (52.5%) would encourage others to boycott. One-fifth (19.6%) would quit, or start looking for new employment.
"The LGBTQ+ community is an economic powerhouse, and we want to work for and support companies who support us," stated Orlando Gonzales, senior vice president of Programs, Research, and Training at the Human Rights Campaign Foundation. "Attacks on DEI initiatives are shortsighted and make our workplaces less safe and less inclusive for hard-working Americans of all demographics and backgrounds. This new data confirms that companies like Molson Coors, Ford, and others that abandon their values and backtrack from commitments to diversity, equity, and inclusion risk losing both top employee talent and consumer dollars."
The survey results were based on a sample of 2,432 eligible adults from all 50 states and the District of Columbia from August 8-18, with a margin of error of 4.6%, in partnership with Community Marketing & Insights Inc.
LGBTQ Agenda is an online column that appears weekly. Got a tip on queer news? Contact John Ferrannini at [email protected]
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