Activist Robby Starbuck recently targeted the Diversity, Equity, and Inclusion (DE&I) initiatives at Tractor Supply Company, John Deere, and Harley Davidson. Starbucks, known for its candid approach, raised concerns about the unintended consequences of these policies and sparked a controversy regarding the impact of DE&I initiatives on corporate America.
Starbuck is recognized for slowly unraveling its opposition to establishments, especially those with conservative customer bases. His recent campaign drew different reactions from the targeted companies. While John Deere chose to soften its DE&I activities, Tractor Supply Company completely halted its ongoing DE&I initiatives. Harley Davidson, however, has yet to issue a response.
The campaign, primarily conducted on social media, has caused noticeable changes in the stock prices of the involved companies.
Activist’s impact on DE&I initiatives
However, the long-term financial consequences are yet unclear and rely significantly on the resilience and adaptability of these companies in the market. It’s noteworthy that the campaign led to the dip and recovery of Harley Davidson’s stock prices and a net increase for Tractor Supply Company.
The campaign also underscored the potential impact of public criticism on businesses, emphasizing the need for proactive planning, strategic public relations, and effective crisis management. The potential damage to a company’s reputation and financial status, stemming from insufficient preparation, serves as a warning to all businesses.
Anthony D’Angelo, a Public Relations professor at Syracuse University, advises consistent re-evaluation of corporate policies and regular ‘temperature checks’ with all stakeholder groups. He has urged against discontinuing DE&I initiatives considering the growing diversity in America. D’Angelo asserts that a failure to adapt to the evolving business landscape could lead to detrimental financial and reputational backlashes.
He emphasized the importance of constant improvement, fast response to changes, and unwavering engagement in diversity and inclusion efforts. These factors play a crucial role in influencing a company’s reputation and survival in an increasingly competitive marketplace.
