Jack Daniel's maker scraps DEI policies after threat of ‘anti-woke' boycott

Core Viewpoint - Brown-Forman Corp., the maker of Jack Daniel's whisky, is retracting its diversity, equity, and inclusion (DEI) initiatives due to social media pressure and the threat of a boycott led by activist Robby Starbuck [1][2][3]. Group 1: Company Actions - Brown-Forman will cease linking bonuses and pay to DEI progress, end participation in LGBTQ-friendly workplace rankings, and abandon plans for a more diverse supplier base [3]. - Previously, 10% of executives' short-term compensation was tied to DEI goals, as noted in the 2023 annual report [3]. - The company initiated its DEI goals in 2019 but has now decided to adjust its approach in response to changing business and legal environments [4]. Group 2: Market Reaction - Following the announcement, Brown-Forman shares experienced a slight dip of less than 1% [4]. Group 3: Industry Trends - Major firms, particularly those with a strong customer base in conservative regions, are increasingly retracting DEI policies under pressure from activists [2][6]. - The shift in corporate policies reflects a broader trend where companies are responding to consumer sentiment, with only 38% of Americans supporting corporate stances on current events [7]. - Companies like Tesla, Home Depot, Wayfair, and Walmart have also been phasing out DEI leadership goals due to consumer backlash [6]. Group 4: Public Perception - There is a growing perception that DEI initiatives may lead to unfairness in hiring and promotions, with some employees feeling overlooked based on ethnicity or sexuality [10][11]. - The backlash against DEI policies is illustrated by the experiences of companies like Target and Bud Light, which faced significant financial losses following their social justice initiatives [9][10].