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Brown-Forman Corp., the Kentucky-based maker of alcohol brands including Jack Daniel's, announced on Aug. 21 that it would be ending several diversity, equity, and inclusion programs in response to changing “legal and external circumstances.” A company spokesperson confirmed the announcement in an email to HR Dive. The employer made the announcement in a company-wide email.
for Copy of letter As DEI anti-activist Robbie Starbuck shared with X, Brown-Forman said this would tie executive incentives and employee goals to corporate performance rather than DEI outcomes.
The company said it would end its “quantitative workforce and supplier diversity ambitions” and cease participation. The Human Rights Campaign's Corporate Equality Index We research and review the remaining programs to align them “with our evolved strategy.”
Struggling with the current environment
A Brown-Forman spokesperson told HR Dive that the company launched its diversity and inclusion strategy in 2019, but the many changes taking place, particularly in the U.S., have caused leadership to rethink that strategy.
“With these new dynamics at play, Brown-Forman has adjusted its operations to ensure we continue to drive business performance while appropriately acknowledging the environment we find ourselves in,” the spokesperson said.
The maker of Jack Daniel's also joined a growing list of companies scaling back on DEI initiatives in recent weeks.
Just two days before Brown-Forman's announcement, motorcycle manufacturer Harley-Davidson confirmed on X In April, the retailer announced it was ending its DEI function and had no plans to further diversify its supply chain. Last month, the retailer Tractor Supply announced a similar change..
DEI experts are sounding the alarm. We’ve been discussing the challenges to our industry for months from both internal and external stakeholders. These pressures have been acknowledged by organizations like the Society for Human Resource Management, which has revised its own DEI platform to: Remove the “E” which stands for fairness. transmission.
brace for backlash
Brown-Forman in the 2023 HRC Equality Index got a perfect scoreThe LGBTQ advocacy group gave the distillery top marks for its inclusive benefits, culture, and internal education initiatives.
HRC released a statement on August 22nd: Criticism of Brown-Forman's decisionThe company called the decision “short-sighted”, saying it was “bowing down to a far-right activist with zero business experience.”
“Hurrying to abandon efforts to ensure fair, safe, and inclusive workplaces for LGBTQ+ people based on the manufactured anger of MAGA harassers is bad business and alienates their employees and millions of LGBTQ+ allied customers,” Eric Bloom, vice president of programs and corporate advocacy at the Human Rights Campaign Foundation, said in a statement.
Who supports ending DEI initiatives?
According to Morning Consult’s August 2024 data, men and Republicans tend to support reducing funding for DEI initiatives and programs overall.
In a post sharing an internal Brown-Forman memo, Starbuck said his group was pushing the “multi-billion dollar organization” to rescind its policy “for fear that we'll be the next company to expose it.”
The decision to scale back DEI initiatives may appeal to organizations facing criticism from anti-DEI activists, but it could also create new problems. Shortly after Tractor Supply announced cuts, retailer Faced with opposition from the National Black Farmers Association And Retail Dive reports on that consumer base:
According to a June report from executive search firm Bridge Partners, only 4% of executives and HR leaders surveyed said they plan to scale back or eliminate their DEI programs in the next two years, while 72% said they plan to do so. Plans to increase DEI commitments.
Brown-Forman said in the memo that it will “continue to foster an inclusive work environment where everyone feels welcome, respected, and empowered to do their best work.” The company also said it will continue to offer employee resource groups.
