Jack Daniel’s whiskey maker Brown-Forman Corp. became the latest company to scrap corporate diversity, equity, and inclusion programs as pressure increasingly grows from conservatives to shed diversity programs or face a public backlash.
The company sent a letter to employees on Wednesday informing them that Brown-Forman was going to stop linking executive compensation to progress on DEI. The company said it will also end its participation in an annual ranking of companies with an LGBTQ-friendly work environment.
The Kentucky-based business will also scrap plans to push for more suppliers from a minority background, according to a copy of the letter shared on X by anti-DEI activist Robby Starbuck and confirmed by Brown-Forman.
The decision follows similar moves in recent months from Harley-Davidson Inc., Tractor Supply Co., and Deere & Co. who were targeted by Starbucks.
The legal and external landscape has changed since Brown-Forman launched its diversity strategy in 2019, the company said in the email. “With these new dynamics at play, we must adjust our work to ensure it continues to drive business results while appropriately recognizing the current environment in which we find ourselves.”
While the majority of executive pay was tied to sales and income growth, 10% of short-term compensation was previously linked to progress made on DEI goals, according to the company’s 2023 annual report.
Companies are caught in a cross-current of competing ideals on corporate diversity initiatives. A Washington Post-Ipsos poll in April found 61% of adults think DEI programs in the workplace are “a good thing.” However, a majority of respondents said that companies shouldn’t take a stance on current events in a survey from Bentley University and Gallup.
Starbuck said on X that he was set to launch a public campaign against Brown-Forman after he found earlier success by pressuring companies online. Brown-Forman had no additional comment.
The activist said he already has a new target. In addition to its public war on DEI, Starbucks has also put in the crosshairs a corporate equality index published by the Human Rights Campaign advocacy group, which ranks firms based on their benefits for LGBTQ staff.
Eric Bloem, HRC’s vice president said that businesses were making “shortsighted” decisions. “Hastily abandoning efforts that ensure fair, safe, and inclusive work environments for LGBTQ+ people based on manufactured outrage from MAGA bullies is bad business,” he said, referring to politically active Trump supporters.
Businesses often publish their spot in the rankings in recruitment material. For its part, Brown-Forman previously had a perfect score of 100 on the index.
Starbucks’s earlier targets have already made changes after anti-DEI campaigns.
| Company | Start of Starbuck’sAnti-DEI Campaign | Action Takenby Business | Select Changes |
|---|---|---|---|
| Tractor Supply | June 6 | June 27 | Eliminated DEI roles, dropped out of HRC ranking and shifted funds away from DEI groups |
| Deere & Co. | July 9 | July 16 | Dropped participation in “social or cultural awareness” events and parades, withdrew funds from DEI causes, re-oriented employee groups |
| Harley-Davidson | July 23 | Aug. 19 | Confirmed end of DEI roles in company, pulled out of HRC ranking, eliminated socially-motivated training and cut minority supplier program goals. |
On Monday, motorcycle maker Harley said that it no longer has minority-owned supplier spending goals, will drop socially-motivated training for employees, and make other changes to back away from diversity programs. The company stopped operating a corporate DEI function in April, it said in a statement posted to social media platform X. Harley will also drop out of the HRC program.
Tractor maker Deere and farming retailer Tractor Supply pulled back on their DEI programs after being criticized by Starbucks earlier this year. Deere last month said it will no longer participate in “cultural awareness parades” and its business resource groups will focus “exclusively” on professional development, networking, mentoring and supporting talent recruitment.
Corporate executives and boards are enhancing their communication strategies to prepare for activist attacks that link business performance to DEI policies. This proactive stance is crucial as, for some public companies, facing these politically motivated attacks is a question of when not if. Recent developments have seen Harley-Davidson and John Deere retract their diversity commitments, while Tractor Supply has ceased diversity and environmental efforts following a campaign by conservative activist Robby Starbuck. Activists are scrutinizing the social media profiles of executives and board members for comments on LGBTQ+ rights, sustainability, and DEI issues. In response, corporate boards are increasingly transparent about their operational decisions and personal credentials with stakeholders. Townsend Belisle from Haystack Needle highlights that monitoring and managing the digital reputation of board members has intensified, as their public image can significantly affect both their careers and the organizations they represent. The reversal of DEI policies by major American brands, driven by right-wing activism, poses a challenge and may encourage further targeting. Brands with a conservative-leaning consumer base are more vulnerable to these pressures, while those with progressive bases are less so. However, changing or reversing commitments can damage a company's reputation significantly, as inconsistent messaging alienates consumers. Decisions by companies like Tractor Supply, John Deere, and Harley-Davidson have received extensive media and social media attention, highlighting the significant impact of policy reversals. Despite these challenges, research indicates that diverse workforces lead to better performance, outperforming less diverse competitors, and a majority of employees view workplace diversity positively. Moving forward, companies are likely to adapt their communication on DEI, as much as they have with ESG topics.