Many large U.S. companies are dropping or altering their diversity, equity and inclusion (DEI) policies following a shift in public sentiment, particularly among conservative customers, and some threats of boycotts.
Amplifying the pressure is Donald Trump’s return as U.S. president. He signed an executive order dubbed “Ending Radical and Wasteful Government DEI Programs and Preferencing,” which halted work in federal agencies aimed at reversing systemic racism, sexism and other inequities.
The order shut government offices dedicated to DEI work and immediately dismissed all employees working on such initiatives. They were put on administrative leave and are expected to soon be laid off.
Another of his orders proclaimed that there are only two biological genders. Yesterday he signed an order directing the Pentagon to devise a new policy within a month for transgender individuals serving in the military.
That shift in corporate sensibility, however, has yet to gain traction in B.C., though many of the U.S. companies pulling back from DEI initiatives have operations in the province.
Walmart Inc. (NYSE:WMT), for example, told BIV in 2022 that it employed about 12,000 workers in B.C.
(The company did not respond to BIV’s recent request for an updated figure.)
Walmart, the world’s largest retailer, said in November that it would not renew a five-year commitment for an equity racial centre set up in 2020, amid Black Lives Matter protests. It also said it would no longer consider race or gender when deciding with which suppliers to conduct business.
Dozens of shareholders representing $266 billion in assets on Jan. 16 sent a letter to the big-box retailer, demanding that it explain and show a business case for backpedalling from DEI initiatives.
Shareholders at Starbucks Corp. (Nasdaq:SBUX), which employs thousands of workers in B.C. but declined to provide an exact number, last year approved a plan to drop an executive bonus that was tied to DEI goals, and to replace it with a more general workforce target.
Molson Coors (NYSE:TAP), another large B.C. employer, said in September that it was dropping its DEI policies and taking what it called a “broader view” in which all employees know they are welcome.
It added that starting this year, it will stop requiring that its hiring process fulfills specific “representation goals.”
Molson Coors has stopped participating in the ranking program by the Human Rights Campaign, an advocacy group that scores companies on how inclusive their workplace practices are toward to the LGBTQ2S+ community.
Tractor maker Deere & Co. (NYSE: DE), Jack Daniels maker Brown-Forman Corp. (NYSE: BF.B) and motorcycle maker Harley-Davidson Inc. (NYSE:HOG) are some of the many other U.S. companies pulling back from DEI initiatives.
Facebook owner Meta Platfoms Inc. (Nasdaq:META) said January 10 that it planned to eliminate its DEI team, ending “equity and inclusion programs and changing hiring and supplier diversity practices.”
Large B.C. companies have yet to pull back from DEI initiatives
B.C.’s largest companies told BIV that they value DEI and have no plan to pull back from such initiatives.
“Our commitment to DEI has been a cornerstone of our culture and core value for over 25 years, which is why we are not planning any changes to our DEI policies,” B.C.’s largest public company by revenue, Telus Corp., said in a statement.
“These principles are deeply embedded in who we are, what we do and how we work.”
Telus’ website shows the company has a nine-member executive team that includes five men and four women. It also has some racial diversity.
B.C.’s second-largest public company, Teck Resources Ltd. (NYSE:TECK) is similarly not changing its DEI policies, director of stakeholder relations Dale Steeves told BIV in an email.
“Teck is committed to supporting a diverse and inclusive workplace that recognizes and values differences,” he said. “Our work to create a respectful workplace for everyone is guided by our values that foster accountability and action across our business.”
Teck’s website shows an 11-member executive team that includes three women.
Consultants say B.C. companies have tended to implement DEI policies more than have counterparts across the country, and generally have more diverse workforces.
“B.C. is more inclusive than other provinces, such as Alberta, or the territories because we have a very diverse population,” said Peoplebiz Consulting Inc. CEO Kristi Searle, who is also on the board of the Chartered Professionals in Human Resources of British Columbia & Yukon.
“Larger companies have to have DEI policies. It’s not to say that smaller companies don’t. But, sometimes, if there’s not a need, they’re not going to go there.”
B.C. technology companies are showing no sign of pulling back from having DEI policies, added Stephanie Hollingshead, CEO at the human resources association for B.C.’s tech sector, TAP Network.
She said her organization does not do consulting work to help those member companies construct DEI policies, but it does survey them and provides resources to help them communicate with staff to make staff comfortable in being open when being surveyed.
TAP Network’s 2024 survey of B.C. technology companies found that about 18 per cent of senior leadership teams had formal accountability for DEI-related goals or mandates. Another 39 per cent of companies were considering this practice.
About 45 per cent of those companies conduct analyses to identify pay gaps for “equity-deserving groups” while 32 per cent were considering that practice, the survey found.
Approximately 57 per cent of organizations ask employees if they have accessibility needs or accommodation requests, while another 19 per cent were considering this practice last year, according to the report.
The 2024 survey also provided a snapshot of diversity in B.C.’s technology sector:
- Of data for 24,512 B.C. technology employees, 38.6 per cent identified as women in 2024, up from 36.9 per cent in 2023;
- Of data for 11,338 B.C. technology employees, 33.1 per cent self-identified as Black or a person of colour, down from 37.5 per cent; and
- Of data for 11,080 B.C. technology employees, 5.2 per cent identified as someone with a disability, up from 4.2 per cent in 2023.
Only 0.8 per cent of the 9,387 employees for which TAP Network had data in 2024 identified as an Indigenous person.
“That’s low,” Hollingshead told BIV. “Obviously it’s much lower than the Indigenous representation in the population.”
The number of women among B.C.’s 10 highest-paid executives has been slowly rising.
In 2023, BIV counted only one woman on that list: Ann Fandozzi, the former CEO at RB Global Inc. (NYSE:RBA), which operated as Ritchie Bros Auctioneers.
Last year, BIV counted two: Celeste Burgoyne, Lululemon Athletica Inc.’s (Nasdaq:LULU) executive vice-president for the Americas, and Lululemon’s former chief product officer, Michelle Choe.
