Just as many corporate boards were determining how to deal with shareholder concerns involving Diversity, Equity and Inclusion (DEI) and Environmental, Social and Governance (ESG) issues, it appears they may have to contend with anti-DEI and anti-ESG activists as well.
Tractor Supply Company is one of the latest companies to make significant changes to its DEI and ESG policies after being targeted by backlash from conservative groups. After weeks of a conservative online campaign against the company’s support of DEI and climate-related policies, Tractor Supply issued a statement saying it would end those practices.
The statement read in part: “We have heard from customers that we have disappointed them. We have taken this feedback to heart… Going forward we will ensure our activities and giving tie directly to our business.”
The Tractor Supply statement announced that:
- It will no longer submit data to the Human Rights Campaign.
- It will eliminate DEI roles at the company and retire its current DEI goals while still ensuring a respectful environment.
- It will withdraw its carbon emission goals and focus on land and water conservation efforts.
The threat of a boycott against the company as well as legal action seems to have had some influence on the decision to end company support for DEI and carbon emission goals, according to a report from the Associated Press.
With the $28 billion Tractor Supply Company seemingly affected by conservative online backlash, corporate board members may need to begin internal discussions to determine what their company might do if they are targeted in a similar fashion. There is no reason to think that more efforts like this are not being planned.
It is important to note that conservatives attacked the company, even though Tractor Supply has seen a 132 percent increase in its stock price over the last five years and is up 21 percent year-to-date. Stock price improvement may not be enough to stop conservative attacks related to these concerns. Unfortunately, it appears some corporate boards may find themselves caught in a crossfire between shareholders who see value in DEI and climate-related initiatives and those who don’t. Finding solutions to this dilemma may need to be a new item on board agendas for the rest of this year and next.
