Companies Reversing DEI Policies: A Growing Trend

Molson Coors is the latest company to join a growing list of businesses that are rolling back their diversity, equity, and inclusion (DEI) policies. This trend has been gaining momentum in recent months, with several retailers and manufacturers making similar moves.

• Molson Coors announced it will eliminate supplier diversity quotas, stating they are "complicated and influenced by factors outside of [the company's] control."
• The company will also rebrand its Employee Resource Groups (ERGs) as Business Resource Groups, while maintaining their existing function.
• Additionally, Molson Coors will cease participation in voluntary third-party company rankings related to DEI, including the Human Rights Campaign's Corporate Equality Index.

Molson Coors' Decision to Reverse DEI Policies

In an internal memo, Molson Coors executives cited several reasons for the changes, emphasizing a shift towards focusing on "core business goals." They will be adjusting their executive incentive programs to prioritize business performance over aspirational representation goals.

• The company claims the decision "has been in process since March," but it has sparked speculation that the move was prompted by conservative activist Robby Starbuck's investigation into Molson Coors' DEI practices.
• The company insists that these changes will not impact employee benefits or diminish its commitment to fostering an inclusive workplace.
• Molson Coors will also realign its corporate charitable giving programs to support alcohol responsibility, disaster relief, and promoting access to higher education, rather than solely focusing on LGBTQ+ organizations.

Other Companies Following Suit

Molson Coors' decision is not an isolated incident. Several other companies have made similar moves to scale back or eliminate their DEI initiatives.

• Rural retailer Tractor Supply was the first to spark this trend, severing ties with the Human Rights Campaign and retiring DEI targets.
• Harley-Davidson and Lowe's followed suit, also opting to reduce or eliminate their DEI programs.
• Ford executives recently announced plans to slash supplier diversity quotas and cut the company's relationship with the HRC's metric.

Impact of the Supreme Court's Decision on Affirmative Action

The Supreme Court's decision to overturn affirmative action in colleges has fueled concerns about the future of DEI in corporate America, even though the ruling does not directly impact corporate hiring practices. Companies are worried that the growing anti-DEI sentiment may bleed into corporate policies.

• Many companies were emboldened to strengthen their DEI initiatives after the murder of George Floyd and the Black Lives Matter protests of 2020.
• The current trend of scaling back DEI efforts reflects a shift in sentiment and pressure from certain sectors.
• The long-term implications of these changes remain unclear, and it is uncertain whether this trend will continue or if companies will eventually revert back to their previous commitments to DEI.

The Future of DEI in the Corporate World

The recent changes to DEI policies highlight the complex and evolving nature of corporate social responsibility. The debate surrounding DEI has become increasingly polarized, and companies are navigating a challenging landscape as they attempt to balance their commitment to social justice with shareholder expectations and the political climate.

• It remains to be seen whether the trend of companies reversing DEI policies will continue or if it represents a temporary shift in priorities.
• The debate over DEI is likely to continue, and companies will need to carefully consider their approach to these issues, taking into account various stakeholder perspectives and evolving societal norms.