(Bloomberg) -- Caterpillar Inc. is introducing new guidelines on external sponsorships and donations as part of a review of some of its DEI initiatives, after anti-diversity activist Robby Starbuck told the company he was preparing a social media attack against its policies.
The construction and mining equipment maker said it will focus all employee training programs on fostering “high performance,” require senior manager approval for external speakers at company events, and implement new guardrails around its employee resource groups. The changes were communicated in a letter to employees that Starbuck shared on his social media page.
Caterpillar spokesperson Joan Cetera confirmed the contents of the memo and said executives had communicated with Starbuck after he reached out. She refuted Starbuck’s claim that the company had withdrawn itself from a notable ranking by an LGBTQ advocacy group as part of the changes. Caterpillar decided last year to stop participating in the ranking from the Human Rights Campaign, she said.
What Is DEI and Why Is It Under Attack?: QuickTake
Caterpillar is joining a string of US firms rethinking their policies on workplace diversity, equity and inclusion. However, its tweaks fall short of some of the more substantial changes made by companies like Tractor Supply Co., which in July said it would retire diversity targets, eliminate DEI roles and withdraw its carbon emission goals after Starbuck started a social media campaign. Ford Motor Co. and Lowe’s Cos. last month said they would stop participating in the HRC ranking.
Caterpillar shareholders in June 2023 rejected a proxy proposal from the conservative activist group National Center for Public Policy Research that asked the manufacturer to audit its DEI activities for negative impact on the business. Only 1.7% of shareholders voted in favor of the proposal.
A 2021 proposal from a DEI advocacy group asking the company to audit the effectiveness of the proposals received more than a third of shareholder support.
US corporations are under pressure from conservative activists to cancel programs many of them adopted after the murder of George Floyd by a White policeman in 2020. A Supreme Court decision last year banning affirmative action at universities has emboldened opponents of corporate diversity programs, even though they are governed by different laws.
--With assistance from Sana Pashankar.
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