Harley-Davidson reassesses DEI policies amid backlash as Robby Starbuck’s ‘war on wokeness’ gains momentum
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Harley-Davidson (NYSE: HOG), the storied American motorcycle manufacturer, has recently faced intense scrutiny over its diversity, equity, and inclusion (DEI) policies.
The company’s decision to reevaluate these policies comes in response to significant backlash from activist filmmaker Robby Starbuck and other critics, who argue that the company’s DEI stance alienates its core customer base.
The pressure on Harley-Davidson intensified after Starbuck accused the company of pushing a ‘woke’ agenda that, in his view, did not align with the values of its traditional customer demographic.
This critique mirrors similar discontent seen in other sectors, with companies like Tractor Supply Company and Deere & Company also reassessing their DEI policies under similar pressures.
In a significant policy shift, Harley-Davidson announced it would review and potentially roll back its DEI initiatives.
This move aims to realign the company’s values with those of its customer base and the broader community, focusing more on merit and neutrality in cultural matters.
The decision comes after criticism related to the company’s LGBTQ+ training material and mandatory participation in Pride events.
Harley-Davidson’s financial performance
While Harley-Davidson grapples with DEI policy backlash, its financial performance presents a mixed picture.
The company reported stronger-than-expected Q2 earnings, with earnings per share (EPS) reaching $1.63, surpassing estimates.
Revenue for the quarter increased by 12.5% year-over-year, totaling $350 million.
Additionally, the company announced a $1 billion share buyback program, which has been positively received by investors.
Despite these positive financial indicators, Harley-Davidson faces challenges ahead.
The company has revised its sales forecasts downward, projecting a 5% to 9% decline in sales.
It also expects to experience margin compression, adjusting its expectations from a range of 12.6% to 13.6% down to 10.6% to 11.6%.
DEI policies vs. Business performance
The ongoing debate over DEI policies and their impact on business performance highlights a broader trend within corporate America.
Companies are increasingly forced to balance progressive social policies with the preferences of their customer bases and shareholders.
Harley-Davidson’s response to Starbuck’s critique underscores the growing influence of anti-‘woke’ sentiment in shaping corporate strategies.
Robby Starbuck, a prominent figure in the ‘war on wokeness,’ has declared victory following Harley-Davidson’s policy reversal.
His efforts, particularly in the lead-up to the upcoming election, suggest that the debate over corporate social responsibility will remain a hot topic.
Companies will need to navigate these complex issues carefully to maintain both customer loyalty and financial stability.
As Harley-Davidson and other corporations adjust their policies, the conversation around ‘wokeness’ and its role in business is likely to continue evolving.
The outcome of these shifts will be closely watched by investors, consumers, and political observers alike.
The post Harley-Davidson reassesses DEI policies amid backlash as Robby Starbuck's 'war on wokeness' gains momentum appeared first on Invezz
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