Brown-Forman Corp., the Kentucky-based manufacturer of alcohol brands including Jack Daniel’s, announced on Aug. 21 that it will end several diversity, equity and inclusion programs in response to a shifting “legal and external landscape,” a company spokesperson confirmed in an email to ESG Dive sister publication HR Dive. The employer made the announcement in a company-wide email.
Per a copy of the letter shared to X by anti-DEI activist Robby Starbuck, Brown-Forman said it would tie executive incentives and employee goals to business performance rather than DEI outcomes.
The company said it would sunset “quantitative workforce and supplier diversity ambitions,” stop participating in the Human Rights Campaign’s Corporate Equality Index survey and review its remaining programs to align “with an evolved strategy.”
Grappling with the current environment
A Brown-Forman spokesperson told HR Dive that it launched its diversity and inclusion strategy in 2019 but that a variety of changes, especially in the U.S., led leadership to reconsider that strategy.
“With these new dynamics at play, Brown-Forman adjusted its work to ensure it continues to drive our business results while appropriately recognizing the current environment in which we find ourselves,” the spokesperson said.
The Jack Daniel’s maker joins a growing list of firms cutting back on DEI initiatives in recent weeks.
Only two days prior to Brown-Forman’s announcement, motorcycle manufacturer Harley-Davidson confirmed on X that it ended its DEI function in April and no longer had plans to diversify its supply chain. Last month, retailer Tractor Supply announced a similar shift.
DEI professionals have sounded alarms for several months about challenges to the industry, from both internal and external stakeholders. Such pressures have been acknowledged by organizations like the Society for Human Resource Management, which revised its own DEI platform by dropping the “E” that stands for equity last month.
Bracing for backlash
In the 2023 edition of the HRC’s equality index, Brown-Forman earned a perfect score. The LGBTQ advocacy group awarded the distiller top marks for its inclusive benefits and culture, and internal training initiatives.
HRC issued a statement Aug. 22 criticizing Brown-Forman’s decision, stating that the company “bowed to a fringe-right activist with zero business experience” in what it called a “shortsighted” decision.
“Hastily abandoning efforts that ensure fair, safe, and inclusive work environments for LGBTQ+ people based on manufactured outrage from MAGA bullies is bad business and leaves their employees and millions of LGBTQ+ allied customers behind,” Eric Bloem, VP of programs and corporate advocacy at the Human Rights Campaign Foundation, said in the statement.
Who supports the end of DEI initiatives?
Starbuck, in his post sharing the internal Brown-Forman memo, said his group is “forcing multi-billion dollar organizations” to revoke their policies “just from fear they have of being the next company that we expose.”
Decisions to cut back on DEI initiatives may appeal to organizations facing criticism from anti-DEI activists, but they also may create new problems. Shortly after Tractor Supply announced its cuts, the retailer faced backlash from the National Black Farmers Association and its consumer base, Retail Dive reported.
A June report by executive search firm Bridge Partners found that only 4% of C-suite and HR leaders surveyed planned to cut back or eliminate DEI programs in the next two years, while 72% said they planned to increase their DEI commitments.
In the memo, Brown-Forman said it would “continue to foster an inclusive work environment where everyone is welcomed, respected, and able to bring their best self to work.” The company also said it would continue to offer employee resource groups.
