Molson Coors has become the latest in a series of companies reversing or scaling back their diversity, equity, and inclusion (DEI) initiatives. In an internal memo sent to employees, the brewing giant announced the elimination of supplier diversity quotas and a shift in its approach to corporate diversity goals. The company cited the complexity of managing such quotas and the influence of factors outside its control.
Starting next year, Molson Coors will also remove DEI-based representation goals from its executive incentive structures, instead tying these incentives strictly to business performance. The company stated it remains committed to ensuring that its suppliers reflect its diverse consumer base but noted the shift in priorities to focus on business objectives.
As part of this new direction, Molson Coors will replace its Employee Resource Groups (ERGs) with Business Resource Groups (BRGs), signaling a rebranding effort, while maintaining their core functions. Additionally, the company will no longer participate in voluntary third-party rankings in the U.S., such as the Human Rights Campaign’s Corporate Equality Index, where it had previously achieved a perfect score. Despite these changes, Molson Coors assured employees that the benefits provided to them, along with the company’s commitment to fostering a welcoming and inclusive environment, will remain unchanged.
In a significant departure from its previous focus on social issues, Molson Coors said its charitable giving will now be aligned with core business goals, including alcohol responsibility and disaster relief, moving away from supporting LGBTQ+-focused initiatives, which the company had previously raised over $700,000 for through its “Tap Into Change” program.
Although some critics attribute these changes to conservative activism, Molson Coors stated that the decision has been in development since March. The move follows a broader trend among corporations, with companies like Tractor Supply, Harley-Davidson, and Lowe’s also rolling back DEI initiatives in recent months.
The renewed focus on DEI policies following the 2020 Black Lives Matter protests has been tempered by a growing shift in sentiment, especially following the Supreme Court’s decision to overturn affirmative action in higher education. While the ruling does not directly impact corporate DEI policies, businesses are increasingly wary of potential backlash, leading to a re-evaluation of their strategies.
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