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Brown-Forman Corp., a renowned Kentucky-based alcohol manufacturer known for brands like Jack Daniel’s, recently announced its decision to discontinue several diversity, equity, and inclusion programs due to evolving legal and external circumstances. This move, confirmed by a company spokesperson in an email to HR Dive, was communicated to all employees via a company-wide email.
According to a letter shared by anti-DEI activist Robby Starbuck, Brown-Forman plans to shift its executive incentives and employee goals to focus on business performance rather than DEI outcomes.
The company will phase out its “quantitative workforce and supplier diversity ambitions,” discontinue participation in the Human Rights Campaign’s Corporate Equality Index survey, and review its existing programs to align with a revised strategy.
A representative from Brown-Forman told HR Dive that the organization launched its diversity and inclusion strategy in 2019 but recent changes, particularly in the U.S., prompted a reassessment of the strategy.
“With these new dynamics at play, Brown-Forman adjusted its approach to ensure continued business success while acknowledging the current environment,” the spokesperson stated.
Brown-Forman’s decision to scale back on DEI initiatives reflects a broader trend among companies in recent weeks. Prior to this announcement, Harley-Davidson and Tractor Supply also made similar moves.
DEI professionals have raised concerns for several months about the challenges facing the industry, both internally and externally. Organizations like the Society for Human Resource Management have responded to these pressures by revising their DEI platform.
Anticipating Criticism
In the 2023 edition of the HRC’s equality index, Brown-Forman received a perfect score. The company was recognized for its inclusive benefits, culture, and internal training initiatives.
HRC criticized Brown-Forman’s decision, stating that the company succumbed to pressure from a fringe-right activist without business expertise.
Understanding Stakeholder Support for DEI Changes
August 2024 data from Morning Consult reveals that men and Republicans are more likely to support reduced funding for DEI initiatives and the discontinuation of related programs.
In a post sharing the internal memo from Brown-Forman, Starbuck mentioned their group’s influence in compelling large organizations to reverse their policies out of fear of exposure.
While cutting back on DEI initiatives may appease critics, it can also lead to new challenges. Following Tractor Supply’s announcement, the retailer faced backlash from the National Black Farmers Association and its consumer base.
A report by Bridge Partners found that only 4% of C-suite and HR leaders surveyed planned to reduce or eliminate DEI programs in the next two years, with a majority intending to increase their DEI commitments.
In its memo, Brown-Forman reiterated its commitment to maintaining an inclusive work environment where all employees feel welcomed, respected, and empowered to contribute their best. The company also affirmed its continued support for employee resource groups.