Lowe’s has received awards in recent years for its diversity, equity, and inclusion work. But the home improvement retailer, based in Mooresville, made news in August when word got out that it was the latest major company to scale back these efforts, as companies reassess DEI initiatives over fears of potential legal trouble and pushback. In an internal memo shared with the Associated Press, Lowe's said it was making changes to ensure its policies are “lawful” and “include everyone.” The retailer will no longer sponsor festivals such as Charlotte Pride.
Daniel Valdez, who is on Charlotte Pride's board, said it’s concerning to see companies like Lowe’s scaling back DEI efforts.
“We know that for a lot of companies, participating in these initiatives is not just about checking the box, but it really represented a public commitment to creating safe and inclusive spaces for all employees and their customers,” Valdez said. “So, walking away from these initiatives really raises the question about the depth of that commitment.”
Many companies raced to create and expand DEI programs after the police killing of George Floyd in 2020. Those programs are now the targets of some conservative groups who say it gives people of color an unfair edge in hiring and promotions and others who say they’re too superficial and bureaucratic to be effective.
Last year, a U.S. Supreme Court decision ended race-based affirmative action in college admissions. That has caused companies to rethink how they frame their DEI programs.
“I just don't meet many companies at all that aren't committed to a diverse workforce. I think it's how they get it done that is definitely changing," said Doug Blizzard, the chief solutions officer for the Catapult Employers Association. The company is headquartered in Charlotte and helps more than 2,000 companies in the Carolinas with human resources.
“Both internally with their employees and externally, they are really trying, most companies at least, to have a more neutral position,” Blizzard said. “Definitely, on board and in favor and support of the goals, but [they're] being careful with actually how they administer it because of how polarized our society is now.”
For example, he said, they’re shifting toward a definition of diversity that emphasizes age, gender, race — and what he calls “schools of thought.”
WFAE asked several major companies in Charlotte whether they’ve scaled back their DEI programs. Bank of America didn’t respond. A Duke Energy spokesperson said the utility couldn’t weigh in because it’s focused on restoring power after Helene. Wells Fargo provided a statement to WFAE that said “diverse representation and perspective, equity and inclusion ... are critical” to its mission.
Atrium Health's Chief Diversity, Equity, and Inclusion Officer Fernando Little, said the health care provider has not scaled back on DEI and remains committed to its programs.
“A lot of the concern around the D, E, and I activities is related to adverse hiring or making adverse employment decisions solely based on a protected class. Well, we've never done that before,” Little said. “We continue to make sure that all of our hiring practices are equitable and following the letter of the law.”
Novant Health had to pay about $4 million in front and back pay and damages to a white executive who was fired in 2018 following the rollout of the company’s diversity and inclusion plan. An appellate court ruled in March the man’s firing was discriminatory.
In response to WFAE’s question on DEI, Novant pointed out programs it offers aimed at diversifying its hiring pool. The health care provider shared a statement that said it’s “committed to fostering a culture where all team members can grow and thrive.”
Some of the biggest changes Sertrice Shipley sees around DEI programs is the language. She’s the founder of Plan to Action, a DEI consultant firm based in Raleigh.
“There are a lot of people who are renaming their DEI efforts ... or pulling it back to 'employee engagement' or 'culture' or 'belonging' is something you might see, or using 'inclusion.' People are OK with the word inclusion,” Shipley said.
Shipley said she hasn’t seen any companies abandoning DEI altogether. She said she’s worried that companies may be reshaping their DEI programs based on the fears of a small number of people.
“There are times when I'm concerned we're over-correcting to ease those fears and make people feel more comfortable when most of the people are either indifferent or OK with the efforts around DEI,” Shipley said.
Going forward, Shipley said companies are more likely to relabel their DEI programs than scale back or remove them permanently.
