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.
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