Tractor Supply is the latest company to bail on DEI, following anger from conservatives

By Bill Peters

'We have heard from customers that we have disappointed them,' the company says. 'We have taken this feedback to heart.'

Tractor Supply Co., a retailer geared toward rural living, has become the latest company to back away from corporate-diversity goals following criticism from conservatives, saying it would eliminate roles related to diversity, equity and inclusion and "retire" its "current" goals related to the practice.

Tractor Supply (TSCO) added that it would no longer submit data to the Human Rights Campaign, an LGBTQ+ civil-rights group, or sponsor Pride festivals. It will also withdraw its carbon-emissions goals.

"We have heard from customers that we have disappointed them," the company said in a release on Thursday. "We have taken this feedback to heart."

The Human Rights Campaign condemned the move, saying Tractor Supply was turning its back on LGBTQ+ people.

"LGBTQ+ people live in every ZIP code in this country, including rural communities," Eric Bloem, the group's vice president of programs and corporate advocacy, said in a statement. "We are shoppers, farmers, veterans and agriculture students."

Bloem added: "Caving to far-right extremists is only going to hurt the same folks that these businesses rely on."

The move followed calls for a boycott of the company, following anger in recent weeks over its support for diversity, equity and inclusion and LGBTQ+ events. That effort was led to a large degree by Robby Starbuck, a conservative media personality and filmmaker.

Starbuck, in a post on X, called Tractor Supply's decision a "massive victory for sanity." He added in an accompanying video message that the retailer had become "a company that does not reflect its customers."

Shares of Tractor Supply - which sells products like grills, air conditioners and lawn mowers - were up 2% on Friday. The stock is up 26.9% so far this year. The company runs more than 2,000 stores in 49 states, according to its annual report released in February.

In its statement Thursday, Tractor Supply said it would still work on "ensuring a respectful environment" despite dropping its existing DEI goals. The company also said it would focus on what it called "rural America priorities," such as agriculture education, animal welfare and veteran causes.

"Rural communities are the backbone of our nation and what make America great," the statement said. "We are honored to be a part of them."

Following George Floyd's murder in 2020, corporate America vowed to use its resources to fight inequality, rushing to hire DEI consultants and put other diversity initiatives in place. Public-relations teams flooded inboxes and social-media feeds with statements affirming those commitments. But DEI consultants have said many of those gestures were performative, and that senior roles dedicated to building a more diverse workplace were under-resourced and essentially set up to fail.

Companies have since backed away from their DEI goals amid rising costs and growing anti-DEI and anti-LGBTQ+ sentiment from conservatives - particularly over Bud Light's brief promotional partnership last year with a trans influencer that dented sales. The Supreme Court's ruling last year ending affirmative action in college admissions has raised concerns about the implications for businesses still pursuing DEI goals.

DEI consultants and other experts say more-involved diversity training attracts talent and is essential to undoing workplace biases as the U.S. population becomes more diverse. And some have said that DEI efforts might not fully go away, but might be approached less directly.

Last year, Tractor Supply celebrated the recognition it had received for its pursuit of workplace diversity. In its annual report from February, the company said it was "committed to the principles of diversity, equity, and inclusion" and was working to carry out new DEI-related initiatives.

"Diversity and inclusion play a key role in moving our business forward," the company said in that report. "Our workforce is approximately 51% male and 49% female. Racial and ethnic minorities comprise approximately 18% of our workforce."

Tractor Supply also said in the report that it wanted to cut its carbon footprint by 20% by 2025 and by 50% by 2030, and achieve net-zero emissions across all operations by 2040.

-Bill Peters

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06-28-24 1735ET

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