Molson Coors joins trend: Companies scaling back DEI efforts

Molson Coors, a leading beer manufacturer, has significantly changed its diversity, equity, and inclusion (DEI) programs. The company joins a growing list of corporations scaling back such initiatives. According to CNBC, Molson Coors plans to eliminate supplier diversity quotas. The brewer cites complexity and external factors as reasons for this change.

“We have found that these metrics can be complicated and influenced by factors outside our control,” company executives stated in an internal memo obtained by CNBC.

The beer maker will also revise executive incentives. Milwaukee Business Journal reports that starting next year, they will no longer include “aspirational representation goals” for hiring practices. Molson Coors is rebranding its Employee Resource Groups as Business Resource Groups, although their function appears to remain largely unchanged.

The company will cease participating in voluntary third-party rankings in the U.S., including the Human Rights Campaign’s Corporate Equality Index for LGBTQ+ equality. CNBC notes Molson Coors previously scored 100 points on this index. The brewer will now focus charitable giving on core business objectives.

These changes follow similar moves by other companies. CNBC reports Tractor Supply, Harley-Davidson, Lowe’s, and Ford have recently altered DEI policies. Molson Coors states these decisions have been in process since March. The company will “continue to welcome everyone at our bar.”

Despite these changes, Molson Coors affirms its commitment to a diverse consumer base and will continue efforts to ensure supplier diversity. As reported by CNBC, the internal memo states: “We are ensuring our executive incentives are tied to business performance and do not include aspirational representation goals beginning next year.”

Milwaukee Business Journal reports that in 2023, Molson Coors nearly reached its goal of spending $1 billion with diverse suppliers. Since 2020, the company has also invested $6 million in organizations focused on Black, Indigenous, and people of color across the U.S. and Canada.

The brewer is developing new company trainings. These will focus on key business objectives rather than DEI-based programs.

Molson Coors’ decision comes amid a broader trend of corporate DEI policy revisions. This shift follows the Supreme Court’s decision to overturn college affirmative action.

CNBC notes that while this ruling applies to academic institutions, companies fear anti-DEI sentiment may impact corporate America.

The brewer’s charitable giving programs will now focus on “core business goals.” These include alcohol responsibility, disaster relief efforts, and promoting access to higher education.

Since 2011, Molson Coors has raised over $700,000 for LGBTQ+-focused organizations through its “Tap Into Change” program and sponsored Pride festivals.

Molson Coors executives emphasized the company’s inclusive stance in their internal memo. “We sell our beers to everyone who can legally buy them, and so our brands will continue to show up in the broad range of consumer occasions across the country and around the world,” they wrote.

The memo concluded with a statement on the unifying power of their product: “Beer is the best industry on earth because our products unite people. People from all walks of life, races, religions, and political persuasions come together at their neighborhood bar over a beer every day.”

These changes follow similar moves by other companies. CNBC reports Tractor Supply started this trend by severing ties with the Human Rights Campaign. Tractor Supply also retired previous DEI targets, including increasing the number of employees of color at the managerial level. Harley-Davidson followed suit, adjusting its DEI policies.

Conservative activist Robby Starbuck claimed these moves were in response to his probe into Molson Coors’ DEI practices. However, CNBC reports that Molson Coors states these decisions have been in process since March.

On the other hand, Mark Cuban, a billionaire entrepreneur, defends DEI practices. He argues they positively impact bottom lines based on his portfolio experience. He challenges critics to find top-performing companies without DEI programs, emphasizing that diversity expands the talent pool and allows businesses to hire the best candidates.  

Jamie Dimon, CEO of JPMorgan Chase, also reaffirms his commitment to DEI. He describes himself as an “unwoke, capitalist CEO” who maintains diversity initiatives. Dimon highlights the bank’s various DEI programs, including resource groups for underrepresented employees and investments in minority-owned businesses, while acknowledging the need to adapt these efforts as laws evolve.

Both leaders view DEI as a critical business strategy and argue that effective implementation can drive company success and profitability.