Quick Hit:

Caterpillar has scaled back its diversity, equity, and inclusion (DEI) initiatives following increasing scrutiny of such policies. The move is part of a growing trend among American companies like Molson Coors, Ford, and Lowe's, which are also stepping away from "woke" policies.

Key Details:

• Caterpillar revised its DEI policies, requiring all training to focus on business objectives.

• Approval is now required from senior leaders for external speakers, surveys, and awards participation.

• Other companies, including Molson Coors, Ford, and John Deere, have similarly rolled back DEI initiatives.

Diving Deeper:

Caterpillar, one of the largest manufacturers of heavy equipment, has recently announced significant changes to its DEI policies as part of a broader shift among major American companies. A memo reviewed by FOX Business detailed that Caterpillar will now require all corporate training to focus on business operations, and any external speakers, surveys, or award participation will need prior approval from senior executives. This move is in response to growing concerns about the effectiveness and necessity of DEI programs within corporate America.

The policy change comes after discussions with anti-DEI activist Robby Starbuck, who had been vocal about exposing Caterpillar's "woke" policies. The company preemptively made these changes, with Starbuck taking to social media to highlight his influence.

Caterpillar's memo emphasized that the goal is to focus training on "high performance and execution" of its enterprise strategy, ensuring that external engagements align with its business objectives. Additionally, the company will soon issue new guidelines for its Employee Resource Groups (ERGs), which cater to various employee communities. These ERGs will remain open to all employees, but new rules will govern their external activities, including sponsorships and donations.

This rollback mirrors actions taken by other major corporations. Molson Coors recently scrapped its DEI training and supplier diversity goals, while Ford ceased participation in the Human Rights Campaign's Corporate Equality Index and committed to staying out of divisive political debates.

These changes reflect a growing backlash against DEI initiatives, with companies reconsidering their involvement in such programs amid increasing pressure from shareholders and the public to refocus on business performance over activism.