Toyota bows to social media pressure, reverses crucial policy

In a post on social media platform X (formerly known as Twitter) on September 26, notorious conservative influencer and anti-DEI activist Robby Starbuck — the architect behind the latest wave of anti-DEI backlash, stated that “It’s time we expose Toyota.”

In a 13-minute, 40-second video attached to the post, Starbuck used divisive and homophobic rhetoric to outline the reasons for his attack on an automaker that “woke up completely” and implored Toyota. (TM) directors to be “politically neutral”.

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“We don’t want to worry about whether a company is going to use the money we spend with them to give to an organization that either explicitly hates us or is going to use it to fund things that are diametrically opposed to us. he had values,” Starbuck pleaded emotionally.

“You’ve forced us into a position where we now have to go and see if the company will support the craziest, most woke things of the day.”

Although a Toyota spokesperson at the time told Bloomberg that Starbuck’s post did not prompt a review of policies for these employee groups, their latest move proves otherwise.

Big news: Last week I exhibited @Toyota + @Lexus because I woke up and now just a week later it heralds BIG changes!

Some important points:

• No longer involved in pride parades, pride events or summer camps for LGBTQ children.

• They will not participate in @HRCwoke up… pic.twitter.com/eUp3aBT4wV

— Robby Starbuck (@robbystarbuck) October 3, 2024

Toyota joins the DEI travel group

According to a Bloomberg report, Toyota is the latest company to join a long line of others, including Ford (F) Tractor Supply Co. (TSCO) Microsoft (MSFT) Lowe’s (LOW) John Deere (OF) and Harley Davidson (PIG) in canceling its DEI initiatives for fear of a larger boycott of those companies’ products and services.

In the message to employees and dealers seen by Bloomberg, Toyota said it would refocus its DEI programs and stop sponsoring events associated with the LGBTQIA+ community, citing the Starbuck’s campaign as a “highly politicized discussion” of such topics.

In addition, the automaker said it is narrowing its community outreach efforts to STEM-based programs and job training initiatives and will no longer participate in the Human Rights Campaign’s Corporate Equality Index or other field surveys of work.

HRC’s Corporate Equality Index has been a massive talking point for Starbuck, as Toyota has held a perfect score for 15 consecutive years.

“The corporate equality index is one that scores corporations basically based on how woke they are,” Starbuck said in his Sept. 26 video. “So Toyota’s score of 100 for 15 years in a row means that Toyota is actually funding transitions not just for their employees, but for the children of employees in states where it’s legal.”

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The automaker’s memo to employees also noted that it will continue to “foster an inclusive environment where diversity of thought can flourish.” However, instead of its former employee-driven program, Toyota said it will focus on activities that will help improve the quality of its business.

“We will work to ensure that activities and events are focused on professional development, networking, mentoring and volunteering – the team member engagement that drives our business. In addition, we will work to ensure that all company activities are aligned with our values ​​and create an inclusive environment for our team members,” the note said.

In a post on X, Robby Starbuck took a victory lap.

“I have to give the executives credit for taking this unifying action. It’s not easy to do, but they’re setting their business up for future success by embracing corporate neutrality. Companies that embrace corporate neutrality will win the future because they don’t violate the core beliefs of consumers on which is based,” Starbuck said.

A Pride flag, a symbol representing the LGBTQIA+ community, is displayed at the top of the Renaissance Center; the current home of General Motors along with the Chevrolet logo.

Roberto Machado Noa/Getty Images

What’s next for the so-called “woke” auto industry?

In a statement to TheStreet, auto industry analyst Sam Fiorani of AutoForecast Solutions noted that Toyota’s decision, like Ford’s, was a move to protect its bottom line and highlighted the true power of the dollar in the hyper-politicized consumer world from today.

“(The anti-revival movement) has gained strength in the economy across all industries, forcing various companies to publicly distance themselves from DEI policies. The potential for their stock price to be affected by this outweighs a lot of the benefits that DEI could see moving in,” Fiorani told TheStreet.

“In today’s political environment, it’s very difficult to stand up against any public movement, right or left. It’s very difficult to take a stand and not see product sales or stock prices affected. These groups have gained some power by using social networks.”

Automakers, including other Detroit giants like General Motors (GM) and Stellantis (STLA) they still have DEI initiatives that could put them in Starbuck’s sights.

General Motors, for example, reported on page four of its 2023 Sustainability Report that it “provided $64 million in grants to nearly 400 US nonprofits to help create inclusive solutions to social problems” and “spent about $5.6 billion with a diverse North American level. I the suppliers.” Additionally, on the next page, he pointed out that, like Toyota before its latest move, it received a top score on the Human Rights Foundation’s Corporate Equality Index.

“We aspire to be the most inclusive company in the world, enabling employees, customers and partners of all backgrounds, identities and abilities to fully participate in GM’s all-electric future,” reads one of two pages devoted to highlighting GM. DEI Policy in Sustainability Report 2023.

TheStreet reached out to General Motors for comment, but did not hear back.

Stellantis, on the other hand, outlines its DEI strategy on 13 pages of its 2023 Corporate Social Responsibility Report. In it, it claims to have been the “presenting sponsors of the Detroit, Toledo and Chicago Pride festivals and parades” and points out, among other initiatives, the “National Supplier Development Program of Color.”

“Powered by our diversity, we drive the way the world moves, that’s our purpose. Diversity and inclusion are therefore intrinsic parts of our company’s commitment to equal opportunities,” Stellantis states as the company’s public position in its Corporate Social Responsibility Report.

“We work to provide our employees with an inclusive work environment where everyone can feel respected and valued. Stellantis publicly calls for the prevention of discrimination and the promotion of equal opportunities”,

Stellantis declined to comment to TheStreet.

“If any of these companies have learned their lesson, the result will end up being fewer announced pushes to DEI incentives. Companies may still have them, but they won’t show them publicly. They may not announce them anywhere at all Fiorani said.

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