The maker of Jack Daniel’s whiskey is ending its diversity programs

By: Trademagazin Date: 2024. 08. 22. 11:03

The maker of Jack Daniel’s whiskey, Brown-Forman, has unexpectedly announced that it will end its corporate Diversity, Equity, and Inclusion (DEI) programs. This decision came as a big surprise, especially among those who previously considered the company’s commitment to the LGBTQ community exemplary.

In a letter Wednesday, Brown-Forman notified employees that executive compensation will no longer be tied to performance in DEI areas. In addition, the company is ending its participation in the annual ranking of LGBTQ-friendly workplaces and no longer seeks to work with more suppliers from minority backgrounds.

The decision is part of a broader trend in which more U.S. companies are abandoning DEI programs under pressure from conservatives. Motorcycle manufacturer Harley-Davidson made a similar move earlier this week.

Brown-Forman launched its diversity strategy in 2019 and has been at the forefront of creating a positive work environment for the LGBTQ community. The company previously achieved the highest score of 100 on the Human Rights Campaign’s Equality Index, in recognition of benefits provided to LGBTQ employees.

In the company’s letter, it referred to changes in the legal and external environment and emphasized that its business results must be adjusted to the current circumstances. Until now, a tenth of the executive compensation was based on the progress made in the DEI areas, but from now on, this connection will cease.