As some corporations move to align with President Donald Trump‘s agenda, manufacturing giant Caterpillar Inc. stands firm on its diversity, equity, and inclusion (DEI) commitments.
According to Manufacturing Digital, at the company’s recent shareholder meeting, investors rejected a proposal aimed at dismantling Caterpillar’s DEI programs. The motion — Proposal 6 — received 3% of shareholder support, with 97% voting against it.
The proposal was introduced by the National Center for Public Policy Research (NCPPR) through its Free Enterprise Project (FEP). It called on Caterpillar to abolish its DEI department, policies, and related goals. FEP Associate Bennett Nuss presented the motion and referenced what he described as the company’s prior “significant revisions” to its corporate sustainability programs in September 2024 — noting his approval of actions it appeared to take in reducing its diversity efforts.
“I’d like to thank the Board for this, as it shows that they are interested in protecting shareholder value from changing market and societal trends, and this pre-emptive move signals a commendable effort to attempt to return to neutral rules of general applicability when it comes to the company’s employment and charitable practices,” Nuss added.
Still, Caterpillar’s leadership made it clear that it remains dedicated to cultivating a diverse and inclusive workplace.
“The proposal inappropriately attempts to restrict Caterpillar’s ability to manage its own employees, ordinary business operations, and enterprise strategy,” the company said, per Manufacturing Digital. “We are committed to fostering an inclusive environment and a workforce that is representative of the diverse customers and communities we serve around the globe.”
The vote comes amid rising political scrutiny of corporate diversity efforts. Since returning to office in January, Trump has signed several executive orders denouncing DEI initiatives.
As AFROTECH™ previously told you, Target, Goldman Sachs, Google, and Meta, as well as Walmart and Amazon — the country’s first- and second-largest private employers, respectively — have all scaled back or completely terminated their DEI programs in recent months.
Several companies have been feeling the consequences, specifically from Black shoppers.
On Feb. 28, The People’s Union USA organized a 24-hour “economic Blackout” against major retailers, urging consumers to avoid both in-store and online purchases. Black shoppers spent less than $1 billion that day, resulting in a $220 million revenue drop, AFROTECH™ noted.
The action resulted in an 18.7% decline in sales and a 17.6% decrease in shopping trips, with Amazon, Walmart, and Target experiencing the most significant impacts.
On March 5, Rev. Jamal Bryant of Atlanta, GA, launched the 40-day Target FAST campaign with four demands for the retail giant. The only demand Target had met in that timeframe was committing to a $2 billion investment in Black businesses “through products, services, and black media buys.” Over 200,000 shoppers reportedly joined the boycott.
Over the past several months, Target experienced 11 consecutive weeks of declining foot traffic across all demographics. According to Retail Dive, Target announced in its latest earnings report that first-quarter merchandise sales dropped by 3.1% year over year, totaling $23.4 billion. Net sales also declined by 2.8%, coming in at $23.8 billion.
In a recent interview with The Guardian, Bryant addressed why he believes Target and other companies underestimate the power of the Black dollar — calling it a financial pushback they haven’t seen in decades.
“They’ve not seen us move like this in 70 years, and they don’t know that they’ve awakened a sleeping giant,” Bryant told The Guardian. “Black people are now alert, mobilized, and conscientious about what’s taking place. And we’re not going to spend our dollars with companies that don’t treat us with dignity.”
