Companies with corporate offices in the United States and operations in Mexico, particularly in Nuevo León, are reducing or eliminating their diversity, inclusion, and work flexibility programs in response to a political whim of the new resident of the White House. This decision has generated widespread rejection from the Latino community, while employees at Costco have expressed satisfaction with the inclusion of Latino products, thereby improving their work experience.
The human resources director of a financial institution raised an important question: Which company do you want to work for? This decision has been seen as a lack of sensitivity towards Latinos, generating frustration and concern among employees. On the other hand, Walmart has experienced a decline in sales after removing Latino products, reflected in the lower influx of Hispanic customers in its stores.
Costco has opted for a different strategy by promoting Latino products in its establishments. The actions of Walmart and Costco have generated controversy, especially among the Hispanic community in the United States, which could long-term affect the reputation and relationship with employees and customers of both companies.
In another vein, despite the growing automation, companies will still need employees in the near future. The recent controversy between two retail giants with operations in Mexico, Walmart and Costco, has sparked a debate about diversity on their shelves in that country. While Walmart has removed Latino products, Costco has bet on a greater presence of these in its stores.
The increasing complexity of the labor market and the limited availability of workforce make evident the mistakes of some companies in damaging their reputation as long-term employers. Although these problems are not exclusive to the past, many organizations continue to face challenges in covering their workforce, which directly impacts the quality of their services and, consequently, their revenues.
Business decisions oriented solely to satisfy momentary political agendas can be risky for the employer brand. In contrast to brand destruction, some companies have been recognized for their efforts, raising the question of how many organizations would be willing to take those risks to meet short-term political objectives.
Financially, Costco has maintained steady revenue growth and increasing customer satisfaction. The pandemic has presented significant challenges for companies, especially in terms of workforce hiring when resuming operations once the health crisis is over.
