Caterpillar Inc., a machinery maker, has recently shifted its focus on employee programs to align with its core business goals. This move comes as part of a larger review of the company’s Code of Conduct and corporate culture. The updated guidelines, outlined in an internal memo viewed by The Epoch Times, include requiring senior management approval for external speakers at company events, concentrating employee training on promoting high performance, and establishing new rules for employee resource groups.
The memo emphasizes that all training, both formal and informal, should be centered around the company’s business objectives and designed to foster high performance and execution of its enterprise strategy. In addition, initiatives related to external recognition for employees, such as surveys and awards, must align with the company’s business objectives and be approved by upper-level management. The use of any external speakers must also be vetted and approved by managers to ensure that the content aligns with the company’s strategy and purpose.
Employee Resource Groups (ERGs), which exist to foster an inclusive culture through networking, mentoring, and staff development opportunities, will now explicitly operate in support of the enterprise strategy. The company plans to provide more detailed guidelines for ERGs in the near future.
These changes at Caterpillar come amidst pressure from conservative activist Robby Starbuck, who has been campaigning against diversity, equity, and inclusion (DEI) programs at various companies. Starbuck claims that his communication with Caterpillar and his threat to expose their “woke policies” led to these changes. He describes the changes as eliminating “woke” trainings, banning donations to divisive events, and ensuring that there is nothing divisive or politically charged in the material presented by external speakers.
Caterpillar has not responded to requests for comment on whether these changes were prompted by Starbuck’s actions. However, Starbuck’s recent campaigns against companies like John Deere and Tractor Supply have resulted in those companies dialing down on their DEI programs.
Other companies, such as Ford, Harley-Davidson, Lowe’s, and Molson Coors, have also revised their DEI-related policies in recent months. However, advocacy groups like the Human Rights Campaign (HRC) have warned of potential consequences when companies pull back on DEI efforts. In a letter co-signed by other civil rights organizations, the HRC claims that abandoning DEI efforts can have long-term consequences on business success. Studies have shown that companies with diverse workforces tend to outperform their peers financially.
The HRC puts out a Corporate Equality Index that scores companies on their DEI efforts. The index takes into account factors like the presence of LGBTQ+ Employee Resource Groups. The HRC argues that an extreme group of right-wing activists is pressuring companies to abandon their DEI programs. They believe that companies that fail to include diverse individuals neglect their financial duty to recruit and retain top talent and limit their overall performance.
According to Starbuck’s social media message, Caterpillar has also withdrawn from the HRC’s Corporate Equality Index. A spokesperson for Caterpillar confirmed the content of the executive office memo but denied that the decision to withdraw from the index was related to Starbuck’s activism. The spokesperson stated that the withdrawal took place last year.
In conclusion, Caterpillar’s recent refocus on employee programs to align with core business goals reflects a larger trend among U.S. companies reevaluating their DEI initiatives. While some see these changes as a win for neutrality and sanity, advocacy groups warn of potential consequences and emphasize the financial benefits of diverse workforces. The involvement of conservative activists like Starbuck adds another layer of complexity to the debate surrounding DEI programs.
