Heavy equipment manufacturer Caterpillar has recently made changes to its diversity, equity, and inclusion (DEI) policies following scrutiny of such initiatives at corporations across the United States. The company sent a memo to its employees outlining the new changes, which include a requirement that all corporate training focus on business operations and approval from senior leaders for bringing in external speakers or participating in external surveys and awards. These changes were made preemptively following discussions with anti-DEI activist Robby Starbuck about his plans to reveal the company’s “woke policies.”
In the memo, Caterpillar emphasized that all training, both formal and informal, must be focused on business and designed to promote high performance and execution of the enterprise strategy. The company also specified that participation in external surveys and award processes, which require significant company resources, must align with business objectives and be approved by the senior management team. Similar requirements for bringing in external speakers will also be implemented, with senior vice presidents responsible for ensuring that speakers are properly vetted and their content aligns with the enterprise strategy.
Caterpillar plans to issue new guidelines for its Employee Resource Groups (ERGs) which are available to employees based on shared life experiences or interests, including factors like race, gender identity, disability, veteran status, and age. The ERGs focus on fostering an inclusive culture through internal networking, mentoring, and development opportunities in support of the enterprise strategy. The new guidelines will govern external sponsorships and donations, external speakers, training, and more, ensuring that all ERGs remain open to all employees.
The move by Caterpillar to revise its DEI policies mirrors changes made by other major corporations like Ford and Molson Coors, who have also rolled back aspects of their DEI initiatives amid criticism of “woke” policies. Ford announced changes to its ERGs and stated that it would not publicly comment on divisive political issues or use quotas in hiring. Molson Coors announced the discontinuation of DEI training, the removal of supplier diversity goals, and the elimination of aspirational representation goals for executives in their compensation plans. These companies also ended their participation in the Human Rights Campaign Corporate Equality Index.
Robby Starbuck, the anti-DEI activist, highlighted his correspondence with Ford and Molson Coors regarding their DEI policies prior to the changes being announced. Lowe’s, John Deere, and Tractor Supply are among other companies that have taken steps to revise and roll back their DEI policies in recent months. The trend of companies adjusting their DEI initiatives in response to criticism reflects ongoing debates around the effectiveness and impact of such policies within the corporate world. Overall, Caterpillar’s changes point to a broader shift in corporate attitudes towards diversity, equity, and inclusion programs in light of evolving societal expectations and business priorities.
