The Rev. Al Sharpton is demanding that PepsiCo meet with him within three weeks to discuss reversing its decision to do away with its diversity, equity, and inclusion initiatives. In a letter to PepsiCo CEO Ramon Laguarta, Sharpton expressed disappointment, stating that removing these initiatives would undo progress in building the company’s brand and trust with its customers. He criticized PepsiCo for abandoning equity, suggesting that political pressure influenced the decision to eliminate DEI hiring and retention goals and dismantle community partnerships with minority organizations. Sharpton threatened a boycott of PepsiCo, following his announcement in January of plans to target two companies for abandoning their DEI pledges.
PepsiCo, one of the largest food and beverage companies in North America, owns popular brands such as Gatorade, Lay’s, Doritos, Mountain Dew, and Pepsi. In February, Laguarta announced that the company would no longer set goals for minority representation in managerial roles or the supplier base. This move came amidst a shifting political landscape following President Donald Trump’s return to the White House, which saw the end of DEI programs in government agencies and warnings to schools about maintaining such initiatives or risking losing federal funding. Major retailers like Walmart and Target also phased out DEI efforts during Trump’s administration.
The Diversity, Equity, and Inclusion movement in the workplace traces its roots back to the legislation and executive orders of the 1960s that aimed to reduce discrimination and increase diversity among employees. Affirmative action policies in the 1970s introduced diversity trainings and employee resource groups, leading to increased hiring of women and minorities. By the 1980s, studies highlighted the business incentive for fostering inclusive workplaces, focusing on creating an environment where everyone feels empowered to achieve their goals. PepsiCo was among the companies leading these efforts, with a legacy of hiring Black sales and marketing executives and creating Black consumer advisory boards.
Al Sharpton highlighted PepsiCo’s history of diversity and inclusion efforts, dating back to the hiring of Black executives in the 1940s and the creation of Black consumer advisory boards in the 1980s. Sharpton emphasized that PepsiCo’s decision to roll back inclusion efforts put this legacy in jeopardy. In the early 2000s, Sharpton served on PepsiCo’s African American advisory board, indicating his previous involvement in the company’s diversity initiatives. While PepsiCo decided to eliminate DEI goals, Coca-Cola reaffirmed its support for diversity initiatives in its annual report, warning that failure to attract employees reflecting its customer base could negatively impact its business operations and future success.
The current debate surrounding PepsiCo’s decision to remove its diversity, equity, and inclusion initiatives reflects broader trends in the corporate world related to diversity and inclusion efforts. As activism and protests by marginalized groups throughout the decades led to legislative changes supporting DEI programs, the importance of fostering inclusive workplaces for business survival became increasingly recognized. Research showed that diverse teams lead to greater innovation, prompting businesses to prioritize cultural competency within leadership. Sharpton’s call for PepsiCo to reverse course on its decision underscores the ongoing significance of DEI efforts in promoting a diverse and inclusive work environment. Failure to address diversity concerns could potentially disrupt operations and hinder future success, as highlighted by Coca-Cola’s commitment to maintaining a corporate culture that fosters innovation and inclusion.
