Harley-Davidson, the legendary American motorcycle maker, was recently under intense scrutiny for its policies on diversity, equity and inclusion.
This decision was made in response to the backlash that activist filmmaker Robby Starbuck, and others have received. They claim that DEI’s stance has alienated its core customers.
Starbuck had accused Harley-Davidson of pushing an agenda which, according to him, was not in line with its customer base.
Similar discontent has been expressed by other industries, such as Tractor Supply Company or Deere & Company. Both companies have re-evaluated their DEI policy under pressure.
Harley-Davidson has announced a major policy change. It will review its DEI programs and possibly roll them back.
The move is intended to align the values of the company with the customer base, and broader community. It will also focus more on neutrality and merit in matters cultural.
After criticism of the company’s LGBTQ+-specific training materials and its mandatory attendance at Pride events, the decision was made.
Harley-Davidson financial performance
Harley-Davidson’s financial performance is mixed as it struggles with the backlash against its DEI policy.
The company reported stronger-than-expected Q2 earnings, with earnings per share (EPS) reaching $1.63, surpassing estimates.
The revenue for the third quarter grew by 12.5% compared to last year, reaching $350 millions.
Investors have also welcomed the $1 billion buyback program announced by the company.
Harley-Davidson still faces many challenges despite these financial indicators.
Sales forecasts have been revised downward by the company, which now projects a decline of 5%-9%.
The company also anticipates margin compression. Its expectations have been lowered from 12.6% to 13,6% to between 10.6% and 11.6%.
DEI Policies vs. business performance
This debate about DEI and its impact on performance is part of a larger trend in corporate America.
The companies are being forced to find a balance between their progressive social policies and the needs of customers, shareholders, and employees.
Harley-Davidson’s response to Starbuck’s criticism underscores the increasing influence of anti-“woke” sentiment on corporate strategy.
Robby Starbuck has claimed victory after Harley-Davidson reversed its policy.
In the run-up to this year’s election and beyond, his efforts suggest the corporate social responsibility debate will continue to be a topic of discussion.
To maintain customer loyalty as well as financial stability, companies will have to carefully navigate through these issues.
The conversation about ‘wokeness,’ its importance in the business world and Harley-Davidson’s policies is sure to evolve as other corporations and Harley-Davidson adjust their policy.
Investors, consumers and politicians will all be watching these changes closely.
As new information becomes available, this post Harley-Davidson reviews DEI policies in the wake of backlash after Rob Starbuck’s “war on wokeness” gains momentum could be updated.
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