Jack Daniel’s Maker Drops DEI.

In a significant shift, Brown-Forman Corp., the company behind Jack Daniel’s whiskey, has announced that it will be discontinuing its diversity, equity, and inclusion (DEI) initiatives. This move marks a notable departure from its previous commitment to these programs and reflects a broader trend among companies facing mounting pressure from various stakeholders.

In a letter sent to employees, Brown-Forman revealed its decision to halt the practice of linking executive compensation to DEI progress. The company will also withdraw from the Human Rights Campaign's (HRC) annual ranking of LGBTQ-friendly workplaces and abandon plans to increase procurement from minority-owned suppliers. The decision aligns Brown-Forman with other companies that have recently reevaluated their DEI commitments, including Harley-Davidson, Tractor Supply Co., and Deere & Co.

The company's shift comes in response to changing legal and external pressures since it first introduced its DEI strategy in 2019. Brown-Forman stated that its approach needed to adapt to the current business environment to continue driving effective results.

The move has been influenced by the activism of Robby Starbuck, who has targeted various companies over their DEI programs. Starbuck's public campaigns have successfully pressured businesses to reconsider their DEI efforts. He has also criticized the HRC’s corporate equality index, which had previously awarded Brown-Forman a perfect score.

Brown-Forman’s decision reflects a broader debate over corporate DEI initiatives. While a majority of Americans view DEI programs positively, a significant portion believes companies should avoid taking stances on current social issues. This divide highlights the challenges companies face in balancing their corporate values with external pressures.

The company's prior DEI efforts included tying 10% of executive short-term compensation to DEI achievements, as outlined in their 2023 annual report. However, as business dynamics evolve, Brown-Forman has opted to focus more directly on traditional business metrics.

Information is sourced from Bloomberg.com but be warned of their stupid paywalls. We will not be doing that anytime!