A visit from an anti-DEI activist causing waves in LGBTQ index. Big companies are paying attention.
Ford, Coors, and other major brands have supported gay and trans rights. However, faced with DEI criticism, some are now reconsidering their commitments.
Molson Coors made some changes after activist Robby Starbuck pressured them regarding their diversity, equity, and inclusion (DEI) policies, one of which was pulling out from the Human Rights Campaign’s index that rates companies’ LGBTQ+ friendliness.
After this, Starbuck highlighted a previous $1 million donation made by Vizzy Hard Seltzer, a Molson Coors brand, to the HRC four years ago. “Today Coors is looking to sever ties with them,” he remarked to his 600,000 followers on the social media site X.
Coors is not the only company sidestepping its relationship with the LGBTQ+ advocacy group.
Of the seven companies that have faced Starbuck’s scrutiny so far—Molson Coors, Harley-Davidson, Lowe’s, rural chain Tractor Supply, distiller Brown-Forman (known for Jack Daniel’s), and Ford—all have promised to stop sharing workplace data with the HRC’s Corporate Equality Index.
The only exception, tractor manufacturer John Deere, stated that it would not endorse “social or cultural awareness parades, festivals or events” but did not specifically mention the HRC.
Additionally, last week, Stanley Black & Decker, which hasn’t faced pressure from Starbuck, revamped its DEI initiatives and announced it would cease its involvement “in all external cultural surveys from third-party entities,” including the HRC, as outlined in an internal memo obtained by YSL News.
Drew Keller, an advocate for LGBTQ+ employees who studied Starbuck’s posts, noted the trend.
While Robby Starbuck claims to oppose DEI, his efforts mainly focus on corporate backing of LGBTQ+ individuals, with only 9% targeting racial diversity, as per Keller’s analysis.
“This isn’t a broad attack on DEI,” Keller explained. “It’s specifically aimed at LGBTQ inclusion.”
Anti-DEI movement gains traction after Bud Light, Target incidents
Following the murder of George Floyd in 2020, many companies have faced criticism over their initiatives to enhance racial equity in hiring and leadership. Companies are also dealing with growing online backlash from consumers dissatisfied with their positions on LGBTQ+ rights.
Once among the most favored beers, Bud Light, owned by Anheuser-Busch, fell to third place after a social media campaign featuring trans influencer Dylan Mulvaney last year.
In response to activists confronting employees and vandalizing displays, retail giant Target relocated its Pride displays from store entrances to the back aisles last year. This year, the company reduced its Pride collection and did not offer it in all stores. Other companies also opted for a more muted celebration of Pride Month compared to previous years.
Starbuck, 35, is leveraging these consumer boycotts through social media to encourage businesses to retract their commitments further. His actions have found support in certain circles.
A poll from Morning Consult conducted in July indicated that while nearly 60% of U.S. adults back corporate DEI initiatives, men, Republicans, and older adults exhibit stronger disapproval. The poll also showed that men and conservative-leaning consumers tend to view brands promoting diversity and inclusion through a lens of “wokeness.”
“Companies should remember the necessity of attracting conservative consumers as well,” Starbuck remarked to YSL News.
The role of corporate America in advancing LGBTQ rights
The acceptance of LGBTQ+ rights within Corporate America has been shaped by years of protests and boycotts, transforming companies that once showed indifference or even hostility into staunch advocates.
Recently, major brands have intensified their support for LGBTQ+ equality by implementing more inclusive policies and benefits.
A report from the HRC reveals that 93% of Fortune 500 companies prohibit discrimination based on sexual orientation and gender identity, while approximately 75% provide benefits inclusive of transgender individuals. Corporations have openly backed same-sex marriage and opposed legislation restricting transgender access to restrooms.
The HRC’s Corporate Equality Index has been integral to this societal progress.
Since its introduction in 2002, the index has assessed 319 companies, with only 13 receiving a top score of 100. In the previous year, the index expanded to evaluate over 1,300 companies, with hundreds achieving perfect scores, including Ford, Molson Coors, Lowe’s, and Brown-Forman, encompassing a wide array of factors.
Workplace policies are becoming more inclusive, with companies offering equal health insurance benefits for same-sex couples and transition support for transgender employees. This year, the Human Rights Campaign (HRC) reports a record participation of 1,400 companies.
While some businesses are reducing their diversity, equity, and inclusion (DEI) initiatives due to a divided political climate, Joanna Schwartz, a marketing professor at Georgia College & State University, believes that companies will likely maintain their long-standing support for LGBTQ+ individuals.
“Many companies are trying to avoid being the next Bud Light, and Robby Starbuck’s actions are a reflection of that,” Schwartz noted.
Molson Coors assured its employees in an internal message that their withdrawal from the HRC index and similar rankings wouldn’t impact the benefits they provide or their commitment to fostering a workspace where all employees feel welcomed.
Brown-Forman expressed to YSL News their commitment to nurturing an inclusive environment where everyone feels respected and empowered to bring their authentic selves to work.
“Companies might take some steps to minimize the impact of this situation, but I doubt they will completely overhaul their operations as a result,” Schwartz stated.
LGBTQ+ individuals and allies are consumers
This caution is well-founded; LGBTQ+ individuals and their allies often make purchasing decisions based on company actions, as seen with Target and Bud Light when they faced backlash.
In the U.S., the LGBTQ+ community commands an estimated purchasing power of $1.4 trillion, according to research from LGBT Capital.
Moreover, data shows that 7.6% of U.S. adults — and one in five young Americans — identify as lesbian, gay, bisexual, transgender, queer, or follow a non-heterosexual orientation.
A recent HRC survey indicated that 80% of LGBTQ+ adults would choose to boycott a company that rolled back their DEI efforts, with over half encouraging others to do the same.
Furthermore, one-fifth of LGBTQ+ adults stated they would either quit or start searching for a new job if their employer reduced DEI initiatives, according to the survey.
Joe Montello, who ran Tractor Supply’s store in Ray Brook, New York, felt disheartened when the company ceased its DEI programs in June, prompting him to resign from his $80,000-per-year position.
“I served customers who were transgender, gay, lesbian, and people of color,” he said. “When the company claimed to align its values with rural customers, it felt like they were excluding a significant part of their clientele.”
Erin Uritus, CEO of Out & Equal, a nonprofit focused on workplace equality, believes that most companies will not abandon their commitments to LGBTQ+ individuals because inclusivity is strategically sound in an increasingly diverse marketplace.
“It’s disappointing to witness a few companies make short-sighted decisions that contradict their values and reverse years of progress to placate right-wing activists, but I’m confident that a culture of belonging will ultimately prevail,” Uritus shared.
The HRC informed YSL News it will continue evaluating companies that do not provide information for their index. Companies that have reduced their DEI initiatives will lose 25 points from their scores. On their website, HRC encourages supporters to send messages of protest to executives of companies that have “cowardly succumbed to these anti-business pressures.” The organization reports that nearly 140,000 supporters have sent such messages.
“These reactions are a reflexive response to the remarkable strides our community has made toward creating safe, fair, and inclusive workplaces,” stated Eric Bloem, HRC’s vice president of programs and corporate advocacy.