Sometimes, you don’t know what you’ve got until it’s gone.
Fourth quarter earnings season is again upon us. Perhaps more this year than any other board of directors across sectors are being asked to weigh in and vote, either for or against, corporate DEI (Diversity, Equity and Inclusion) efforts.
Six months ago, the conversation around corporate DEI began to heat up, as conservative groups and activists began gaining both traction and visibility. Their mission? Get companies to ditch their efforts and programs around DEI. The first company that announced was Tractor Supply, a 2250 chain store that sells farm supplies, pet and animal feed and supplies among other items. Next came John Deere, one of America’s top 100 companies, but the press really began to take notice in August when Americas own Harley-Davidson, the 120+ year old American motorcycle manufacturer, joined the conversation when they announced through a post on X that they have “not operated a DEI function since April 2024 and we do not have a DEI function today.”
So what is the result of Harley-Davdison’s stock performace since then?
It’s down 25%.
From April 24th to January 15th (NYSE: HOG) has gone the opposite direction of the broader market trend.
The Politics of DEI Shouldn’t Overshadow Its Power and potential.
By 2045, America will be majority people of color, and building a bridge to be inclusive of these voices allows companies to overcome the historic blind spot with these consumers, when it comes to messaging, marketing and elevating their importance to business, society and the economy at large.
How big is this blind spot? Over $6 trillion domestically, and $16 trillion globally.
It is estimated that Black Americans’ spending power sits between $1.4 trillion and $1.8 trillion annually, a powerful economic bloc that’s comparable to the gross domestic products of Mexico, Canada and Italy. Latinos’ purchasing power in the U.S. reached $3.4 trillionin 2021 and grew over two times faster than non-Latino counterparts. Asian Americans, with $1.3 trillion in buying power, have a median household income of $104,646, well above the average income in the U.S. This demographic has grown 314% over the past two decades, becoming the fastest-growing of all ethnicity groups.
And when you step outside the U.S., to discuss global diversity in areas such as accessibility and LGBT+, those with disabilities and their families spend an estimated $13 trillion per year, while the LGBT+ community’s financial strength is estimated to be around $3.9 trillion.
Tapping into these consumer markets is not only smart but also necessary for robust corporate bottom lines. An added bonus is that the collective intelligence, insights and skillsets of diverse populations provide opportunities for employers to strengthen their workforce headcounts.
Harley-Davidson (NYSE: HOG) has announced it will release its fourth quarter and year-end 2024 financial results before market hours on Wednesday, February 5, 2025.