Toyota, the car manufacturer, has revealed a shift in its approach to diversity, equity, and inclusion (DEI) programmes, announcing that it will no longer sponsor cultural events and parades such as LGBTQ+ Pride in the US.
In a memo shared with 50,000 US employees and over 1,500 dealerships, the company explained that the decision was a result of a highly politicised discussion regarding business commitments to DEI.
The memo indicated that Toyota would no longer sponsor cultural events, including festivals and parades, unless they were directly connected to STEM (science, technology, engineering, and maths) education or workforce readiness.
Bloomberg reported that Toyota also intends to withdraw from participating in cultural surveys and will discontinue its involvement in the Human Rights Campaign (HRC) annual Corporate Equality Index, where the company had once received a perfect score for its DEI efforts.
The car manufacturer plans to redirect its employee resource groups to focus on professional development, networking, and mentoring, aligning these efforts more closely with business objectives.
The Influence of Robby Starbuck
The announcement follows criticism from right-wing commentator Robby Starbuck, who took to X/Twitter to denounce Toyota’s commitment to DEI. Starbuck suggested that Toyota, once seen as one of America’s most trusted brands, had become excessively focused on “woke” ideals. He argued that the corporate values did not reflect those of most Toyota and Lexus owners, apart from perhaps Prius owners, who he implied might support such initiatives.
After Toyota’s decision was made public, Starbuck expressed his satisfaction, claiming that his efforts were contributing to bringing what he called “sanity” back to corporate America. He later encouraged his followers to support his Patreon to continue his work, noting that any donations would not be tax-deductible.
Toyota Joins Other Companies in Dropping DEI Initiatives
Based in the conservative state of Texas, Toyota joins a growing list of companies reassessing their DEI commitments due to pressure from figures like Starbuck.
Other businesses, including Ford, Harley-Davidson, John Deere, and Stanley Black & Decker, have recently taken similar actions.
Despite the proven benefits of robust DEI policies, many US businesses appear to be stepping back from “woke” initiatives in response to the demands of a vocal minority.
Research from GLAAD shows that Americans are twice as likely to support brands that back the LGBTQ+ community. Additionally, 71% of LGBTQ+ adults in the US prefer to purchase from brands that demonstrate support for the community. With 30% of Generation Z adults in the US identifying as queer, and their collective spending power exceeding $1.4 trillion (£1.06 trillion), only time will tell if companies that abandon their DEI commitments will experience financial repercussions.
The HRC’s 2024 LGBTQ+ Climate Survey found that 80% of LGBTQ+ Americans would boycott businesses that drop DEI policies, with 52% stating they would actively encourage others to do the same.