Tuesday, September 9, 2025
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PepsiCo Faces Backlash for Ending Diversity Initiatives

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Rev. Al Sharpton, a prominent civil rights leader and founder of the National Action Network (NAN), has issued a public call to PepsiCo, urging the company to restore its Diversity, Equity, and Inclusion (DEI) initiatives.

Sharpton has given PepsiCo three weeks to meet with him and discuss reversing its recent decision to dismantle DEI programs.

If the company fails to comply, Sharpton has threatened a boycott, emphasizing the importance of DEI in fostering trust and equity among diverse communities.

Decision by PepsiCo to End DEI Programs

PepsiCo, one of North America’s largest food and beverage companies, recently announced significant changes to its DEI policies.

In a memo sent to employees, CEO Ramon Laguarta stated that the company would no longer set goals for minority representation in managerial roles or supplier bases.

This decision aligns with a broader trend among corporations reevaluating DEI initiatives under political and shareholder pressure.

The move has sparked criticism from civil rights advocates, including Sharpton, who described it as a “walk away from equity.”

He highlighted that PepsiCo’s decision to remove DEI hiring and retention goals and dismantle community partnerships with minority organizations sends a clear signal that political pressure has outweighed principle.

Sharpton’s Response to PepsiCo and Call to Action

In a letter addressed to Ramon, Sharpton expressed his profound disappointment with PepsiCo’s decision.

He emphasized the historical significance of DEI initiatives, noting that they have been instrumental in building PepsiCo’s brand and fostering trust with millions of customers.

Sharpton urged PepsiCo to reconsider its stance and restore its commitment to diversity and inclusion.

Sharpton’s call to action is part of a broader campaign by NAN to hold corporations accountable for abandoning DEI pledges.

Earlier this year, Sharpton announced that NAN would identify two companies within 90 days for targeted boycotts.

PepsiCo’s recent actions have placed it in the spotlight, with Sharpton warning that the company could face significant backlash if it fails to address these concerns.

Historical Context of DEI Initiatives

DEI initiatives have their roots in decades of activism and protests by marginalized groups.

Following landmark legislation and executive orders in the 1960s, affirmative action policies and diversity training programs emerged in the workplace.

By the 1980s, studies highlighted the business incentives for fostering inclusive environments, emphasizing that diversity was essential for innovation and survival.

PepsiCo has historically been a leader in promoting diversity.

In the 1940s and 1950s, the company hired some of the first Black sales and marketing executives in corporate America.

By the 1980s, PepsiCo’s policies led to the creation of Black consumer advisory boards, showcasing its commitment to inclusivity.

Sharpton’s letter underscores the importance of preserving this legacy.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus