To every moral and ethical Christian, this is Rev. Al Sharpton, taking a stand. He’s calling on PepsiCo to immediately reinstate its diversity, equity, and inclusion (DEI) initiatives — efforts that the company recently announced will be reduced. Sharpton has given PepsiCo a three-week deadline to meet with him to discuss reversing this decision, which many see as a troubling signal of the company’s shifting commitment to diversity in a landscape where competitors like Coca-Cola continue to support such efforts.
PepsiCo is the second largest of the North American food and beverage behemoths. It touts the benefits of some of its most famous brands — including Gatorade, Lay’s potato chips, Doritos, Mountain Dew and Pepsi — with pride. For years, the company has blazed a trail in corporate diversity. In the 1940s and 1950s, it was one of the first companies to hire Black sales and marketing executives. In the 1980s, PepsiCo went even further to show its commitment to diversity with the creation of Black consumer advisory boards.
At the same time, in the early 2000s, Sharpton was fighting PepsiCo’s black face on the inside. He was an advocate for inclusive practices inside the organization. A memo sent by PepsiCo CEO Ramon Laguarta in February showed a major reversal in that policy. The memo declared that the company would discontinue goals for minority representation in management positions. It further announced that the company will stop setting targets for its supplier pool. This announcement happened to coincide with Coca-Cola’s reaffirmation of its DEI commitments, setting the two industry giants in sharp contrast with one another.
Sharpton’s letter to PepsiCo specifically underscored the importance of our diversity initiatives. He asked us to consider that the company had already reaped the rewards of adopting these practices. He lamented that the move to abandon inclusion commitments indicated that political pressures had won out over principles.
“You have walked away from equity,” – The Rev. Al Sharpton
He further highlighted that PepsiCo’s rollback of inclusion efforts may hinder the company’s ability to attract a diverse workforce that mirrors its extensive customer base. This feeling dovetails nicely with Coca-Cola’s recent alarm bells regarding the negative impacts of overlooking the need for a corporate culture that fosters invention and cooperation.
“Failure to maintain a corporate culture that fosters innovation, collaboration and inclusion … could disrupt our operations and adversely affect our business and our future success,” – Coca-Cola
PepsiCo’s move isn’t purely driven by ethics. Analysts are cautioning that it stands to damage the company’s future talent recruitment. More than ever, businesses are recognizing the powerful role that a diverse workforce plays in driving creativity and innovation. This last effort—Sharpton’s call for PepsiCo to reconsider its diversification strategy—is making some waves.
A spokesperson for PepsiCo told The Hill that the company actually has not yet seen Sharpton’s letter. As a consequence, they often cannot speak to the matter. This failure to engage with stakeholders casts doubt on the company’s commitment to address public concerns over its lack of corporate social responsibility.
Diversity and inclusion expert Mary-Frances Winters commented on what these moves mean for the corporate landscape.
“This was really about looking at changing demographics, looking at who was coming into the workforce and also looking at how people with different backgrounds can lead to greater innovation,” – Mary-Frances Winters
Sharpton takes to the streets—or at least to TV commercials—against PepsiCo. This makes it one of the first major, real-time, and long-term tests for corporate America, to prove their commitment to diversity as public accountability and pressure from all directions rises.
