Manufacturing Giant Caterpillar Rejects Anti-DEI Proposal

Caterpillar’s shareholders have voted to reject by 97% a proposal aimed at halting the firm’s diversity, equity and inclusion (DEI) policies. 

The initiative, tabled by the National Center for Public Policy Research (NCPPR), sought to ensure the company “cease DEI efforts”.

The shareholder proposal came from NCPPR’s Free Enterprise Project (FEP), which has been targeting major US corporations including American Airlines, Target, Best Buy and Dick’s Sporting Goods with similar motions. 

The group submitted what it called Proposal 6 at Caterpillar’s annual meeting, asking the company to consider abolishing its DEI policies, department and stated goals.

Speaking during the meeting, FEP Associate Bennett Nuss introduced the motion by referencing earlier changes made by Caterpillar. 

He said: "Caterpillar has backed away from the commitments to corporate diversity programmes that we cited when we first submitted our proposal, undertaking significant revisions to their corporate sustainability programmes in September of last year.

“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.”

The proposal garners support from just 3% of Caterpillar shareholders.

Company maintains DEI stance

Caterpillar responded to the proposal with a statement asserting its autonomy over business strategy and internal policy. 

It said: "The proposal inappropriately attempts to restrict Caterpillar’s ability to manage its own employees, ordinary business operations and enterprise strategy.

“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."

Caterpillar’s public DEI page remains live on its website.

Political attention puts pressure on DEI

The vote comes at a time when DEI is under the national political spotlight. US President Donald Trump, who returned to office in January 2025, has made frequent statements denouncing corporate diversity initiatives. 

He has previously called DEI policies "dangerous, demeaning and immoral," also labelling them "nonsense."

Caterpillar’s response to this stance has been nuanced. 

It appeared to be considering its internal DEI messaging last year, after pressure from figures like social media activist Robby Starbuck. 

In September 2024, the firm informed staff it would shift focus in its training programmes towards "fostering high performance". 

It also said it would require senior management approval for selecting external speakers, and promised new guidelines on donations and sponsorships.

None of these changes remove DEI from the company’s agenda. Rather, Caterpillar’s shareholder vote shows most investors are not in favour of eliminating diversity frameworks, even amid external pressure.

Explore the latest edition of Manufacturing Digital and be part of the conversation at our global conference series, Manufacturing LIVE.

Discover all our upcoming events and secure your tickets today.

Manufacturing Digital is a BizClik brand.