PepsiCo, the beverage giant, is shaking up its approach to Diversity, Equity, and Inclusion (DEI) by eliminating its Chief DEI Officer position and introducing a new strategy called “Inclusion for Growth.”
At a Glance
- PepsiCo is restructuring its DEI programs, eliminating workforce representation targets and the Chief DEI Officer role
- The company is introducing a new “Inclusion for Growth” strategy to embed inclusion throughout the business
- PepsiCo aims to pursue viewpoint neutrality in advertising and centralize employee resource groups
- The shift aligns with a broader trend of companies distancing themselves from DEI policies
- Critics argue that PepsiCo’s changes may be superficial, with DEI elements still present on their website
PepsiCo’s New Direction
PepsiCo Inc., one of America’s largest food and beverage companies, is making significant changes to its Diversity, Equity, and Inclusion (DEI) programs. The company is eliminating workforce representation targets and the role of Chief DEI Officer as part of a broader restructuring effort. This move comes as PepsiCo concludes its current five-year DEI strategy and prepares to launch a new phase called “Inclusion for Growth.”
CEO Ramon Laguarta explained the reasoning behind the shift, stating, “We are revising our DEI program, as 2025 marks the conclusion of our five-year strategy. We see an even bigger opportunity to more deeply embed inclusion throughout the business as a key driver of business growth and will be introducing a new Inclusion for Growth strategy.”
Aligning with Business Strategy
The changes in PepsiCo’s DEI strategy are part of a broader effort to align with the company’s long-term business strategy and improve responsiveness to local markets. Laguarta emphasized that the restructuring is designed “to ensure it is aligned with our long-term business strategy, responsive to local markets, and focused on the principles that drive sustainable growth.”
As part of this new direction, PepsiCo plans to expand its supplier diversity program to include all small businesses, not just those owned by “underrepresented” groups. The company is also aiming to pursue viewpoint neutrality in advertising, moving away from politically biased organizations.
Part of a Broader Trend
PepsiCo’s restructuring of its DEI strategy is not an isolated incident. It aligns with a broader trend of companies reevaluating their DEI policies. Other corporate giants like Disney, Google, and General Motors have also adjusted their DEI language and approaches. This shift comes amid a nationwide backlash against DEI policies, influenced in part by previous executive orders from former President Donald Trump, who once declared such initiatives “illegal.”
The move by PepsiCo has sparked mixed reactions. While some view it as a step towards corporate impartiality, others question the company’s ongoing commitment to DEI goals. Critics, like Paul Chesser from the National Legal and Policy Center, argue that the changes might be superficial. Chesser commented, “If you check their website it still has DEI cr-p all over it… They’re just pushing it below the surface.”
As PepsiCo moves forward with its “Inclusion for Growth” strategy, the company emphasizes that hard work and performance will drive success. The restructuring includes centralizing Employee Resource Groups (ERGs) and ending “aspirational representational goals” in hiring. These changes reflect a shift towards a more integrated approach to inclusion, embedding it throughout the business as a key driver of growth.
