Campaign
published a PRWeek U.S. report claiming corporations are not dismantling ERGs,
despite defunding, deferring, and demolishing other DEIBA+ initiatives.
It’s unclear
if sustaining ERGs
applies to White advertising agencies too. If Adland decides to deliberately
demonstrate dedication for ERGs, here are likely reasons why:
First, ERGs
don’t cost anything—not even crumbs—since
most groups are voluntary endeavors, cultural cliques offering support systems
with little or no cash value.
Second, ERGs
offer—albeit reluctantly—free “consultation” at White advertising agencies.
That is, members must serve as culture SMEs—creating the modern-day equivalent
of asking the mailroom attendant or cafeteria crew to weigh in on concepts.
Third, and
most importantly, ERGs
don’t require anything from White staffers. Legitimate DEIBA+ initiatives
demand intention, budgets,
and action. It takes work that Whites are unable and/or unwilling to provide—in
contrast to commitment-free ERGs.
In short,
White advertising agencies can back ERGs by doing nothing.
Why
corporate America isn’t retreating on ERGs like it did on DEI
By Chris
Daniels
Lesson learned:
Companies are making sure that employee resource groups are a much more
difficult target for right-wing activists.
The saying “a
virtue never tested is no virtue at all” expresses the idea that values — such
as inclusivity, empathy, authenticity and kindness — are only true when
challenged and consistently upheld.
Now employee
resource groups (ERGs) are under the microscope. In the age of aggressive
anti-woke activism, companies and PR agencies are repackaging their ERGs to
take a potential target off their backs while continuing to give their talent a
sense of belonging and acceptance.
There are many
corporate benefits to ERGs. They improve recruitment, retention and advancement
and promote a more diverse, equitable and inclusive workplace. They benefit
corporate reputation, aligning company cultures with employee values. And they
improve business outcomes, shaping product offerings for target
communities.
Yet despite
these well-established benefits, some companies are backing off support for
ERGs. For instance, Lowe’s said it decided to combine its ERGs, which were for
“individual groups representing diverse sections of our associate population,”
into one umbrella organization.
Right-wing
influencer and activist Robby Starbuck, a former music video director who
unsuccessfully ran for Congress from Tennessee in 2022, took credit for Lowe’s
change. Starbuck posted that he reached out to a Lowe’s executive with plans to
“expose” the company’s “ERGs based on the sex people prefer to have” as well as
“funding Pride events and transitions via healthcare policy.”
Starbuck and
other conservative activists are emboldened by the Supreme Court’s decision
last year to strike down affirmative action in college and university
admissions, anti-DEI laws passed at the local and state levels and Donald
Trump’s election win.
Other companies
that have shared plans to scale back ERGs along with DEI
initiatives include Ford and John Deere. The National Black Farmers
Association accused John Deere of removing a list of awards it won for
inclusiveness, as well as the names of about a dozen ERGs, from its
website.
Lowe’s, Ford
and John Deere did not respond to requests for comment.
Starbuck, who
has also been celebrating “wins” after Ford, Molson Coors and John Deere
withdrew from Human Rights Campaign’s Corporate Equality Index, has boasted
about the influence and chilling effect he and his supporters have on
companies.
“We’re now
forcing multibillion-dollar organizations to change their policies without even
posting just from fear they have of being the next company that we expose,” he
wrote.
Corporate
brands aren’t the only ones that seem to be fearful. PRWeek contacted more than
a half-dozen major PR agencies, and several with employee-led and
employer-supported ERGs refused to speak about the topic. One agency leader
said many firms are still trying to wrap their heads around ERG counsel.
“We are in the
midst of thinking about implications for all of our clients and will be
sharpening our thinking in the near future,” said one agency exec.
Those who did
speak to PRWeek say clients aren’t planning to get rid of ERGs, but they are
thinking about repackaging them to adapt to the cultural and political moment,
and to protect themselves in the event of a legal fight.
Molson Coors,
which said it will stop requiring “representation goals” in its hiring process,
hasn’t gotten rid of its ERGs. In a memo to employees read by PRWeek, the
brewer said, “To provide clarity that the mission of our existing employee
resource groups is centered around business objectives, consumer dynamics and
career development, moving forward they will be referred to as business
resource groups.”
To use a beer
analogy, it’s the same brew with a new label.
Molson Coors
declined a request for comment.
“I have not
come across a single company that has intentions to sunset ERGs or broadly end
DEI commitments,” says Elle Arlook, who leads APCO’s equity and justice
practice.
Arlook said she
has had conversations with 10 clients about DEI risks this week.
“Clients are
coming to us with concerns about protecting elements of their DEI programming
and mitigating potential risk given the broader external environment,” she
says. “While many companies are certainly toning down how and how much they
talk about DEI, most understand that the impacts of DEI programming are valued
by employees and contribute to strong business performance.”
In fact, Arlook
says companies are planning to bolster ERGs, particularly in the midst of
intense political and social divides, where even members of the same group may
be split on the issues dominating outside conversation.
“Many of our
clients are reviewing and strengthening the foundations of their ERGs, from
ensuring ERGs have clear charters and defining their role within the company's
culture and leadership structure to preparing guidelines for communications and
toolkits for programming,” she says. “In this moment, it’s important for
companies to take a step back and ensure that the structure and remit of ERGs
are tied to a clear set of business priorities and objectives.”
While Starbuck
frames his anti-DEI crusade as getting politics out of corporate America,
that’s clearly a fallacy, says Deidra Johnson, SVP and Justice, Equity,
Diversity and Inclusion (JEDI) advisory services practice lead at Porter
Novelli Atlanta.
“While Starbuck
claims to stand against all diversity, equity, and inclusion efforts, his
criticisms rarely extend to groups created to support veterans, people with
disabilities or women,” says Johnson. “One of his primary focuses is calling
for the end of all transgender inclusivity, labeling anyone who supports the
LGBTQIA+ community as ‘woke’ and ‘non-American.’”
She also
encourages CEOs “to remember the purpose and values of their corporation and
not to waiver on either of these. Don’t feel pressured to respond because
someone posts an untrue video or social media message about you.”
Some in-house
executives say companies that have backtracked on ERGs and DEI initiatives may
be self-inflicting a lot of damage. A chief communications officer at a Fortune
500 brand says these companies are essentially standing by as outside actors
recruit their employees.
“A corporation
that has championed DEI, publicly supported the LGBTQIA+ community and proudly
waved the Pride flag, only to erase those commitments from its website when
faced with criticism, hits that ERG so, so hard,” says the executive. “What you’re
essentially telling those employees is, ‘When you were under attack, we chose
to open the door and let the attack in.’”
“Corporations
are people-powered vehicles,” adds this exec. “You have to respect the people
who work for you, and if you start making moral compromises, a percentage of
your workforce that you don’t want to lose is going to be brushing up on their
resumes.”
Instead, this
in-house leader says corporations should engage in dialogue with their ERGs,
not about removing language from corporate communications, but rather to refine
and fortify it so they can withstand scrutiny.
Naria Frazer,
SVP of people experience and belonging at Praytell, says companies risk their
reputations by giving in to far-right-wing threats.
“While some
companies may scale back or rebrand ERGs in an effort to avoid controversy,
this approach carries significant risk. Diluting these groups sends a message
that comfort takes precedence over commitment, which can erode trust among key
stakeholders, both employees and consumers alike,” she says.
Frazer says
corporate America should be doing the opposite.
“The current
climate may challenge DEI efforts, but it also calls for greater
intentionality, strategy and louder voices. True leadership means standing firm
in your values, speaking up for others and moving forward with bold, consistent
action,” she says. “Forward-thinking companies are doubling down on ERGs,
strategically aligning them with environmental, social and governance goals and
embedding their work into measurable business outcomes,”
Frazer says a
proactive strategy also includes using storytelling and hard data to build a
compelling narrative for their value; equipping leaders with training and
resources to navigate challenges and advocate for their groups effectively; and
engaging legal teams to safeguard ERGs and address vulnerabilities.
“By positioning
ERGs as drivers of innovation, recruitment, retention and cultural
intelligence, companies ensure these groups are viewed as business assets
rather than liabilities,” says Frazer.
This story
first appeared on PRWeek U.S.
