Coors Beer’s Parent Company Scraps Diversity, Equity, and Inclusion Policies

Introduction

Molson Coors, the parent company of Coors beer, has made a surprise move by announcing that it will be scrapping its diversity, equity, and inclusion (DEI) policies. This decision comes amid a growing trend of companies reversing their DEI initiatives. In this article, we’ll delve into the reasons behind Molson Coors’ decision and the implications it has on corporate America.

Molson Coors’ Decision

In an internal memo obtained by CNBC, Molson Coors executives stated that the company will be getting rid of supplier diversity quotas. The company claimed that these quotas can be "complicated and influenced by factors outside of [the company’s] control." Instead, Molson Coors will focus on ensuring that its suppliers are representative of its diverse consumer base.

However, the brewer’s decision goes beyond just scrapping supplier diversity quotas. Molson Coors is also rebranding its Employee Resource Groups as Business Resource Groups, ceasing participation in third-party "best of" company rankings, and refocusing its corporate charitable giving programs to support "core business goals."

Rationale Behind the Decision

Molson Coors has cited its desire to move away from "aspirational representation goals" and instead tie executive incentives to business performance. The company believes that this approach will be more effective in driving business growth and success.

Additionally, Molson Coors claims that its decision has been in process since March and is not a direct response to external pressures or concerns. However, the move comes after a wave of retailers, including Tractor Supply, Harley-Davidson, Lowe’s, and Ford, have also taken steps to reverse their DEI efforts.

Impact on Corporate America

The trend of companies scrapping DEI initiatives raises concerns about the growing anti-DEI sentiment in corporate America. With the Supreme Court’s decision to overturn affirmative action in colleges, companies are worried that the same anti-DEI sentiment will bleed into corporate America.

The implications of this trend are far-reaching, from reduced representation and opportunities for underrepresented groups to a potential lack of innovation and diversity of thought within companies. DEI initiatives were introduced in response to growing concerns about diversity and inclusion, particularly in the wake of the murder of George Floyd and the Black Lives Matter protests of 2020.

Conclusion

Molson Coors’ decision to scrap its DEI policies is a significant development in the corporate world. As companies grapple with the challenges of driving business growth and success, it remains to be seen whether other companies will follow suit or continue to prioritize DEI initiatives.

Ultimately, the decision highlights the need for companies to prioritize diversity, equity, and inclusion. By doing so, companies can drive innovation, reduce turnover, and improve their reputation and brand.

FAQs

Q: What is Molson Coors’ reasoning behind scrapping its DEI policies?

A: Molson Coors claims that it is moving away from "aspirational representation goals" and instead tying executive incentives to business performance.

Q: Has Molson Coors’ decision been in process since March?

A: Yes, according to Molson Coors, its decision has been in process since March.

Q: What is the impact on corporate America?

A: The trend of companies scrapping DEI initiatives raises concerns about the growing anti-DEI sentiment in corporate America.

Q: Will other companies follow Molson Coors’ lead?

A: It is unclear whether other companies will follow suit or continue to prioritize DEI initiatives.

Author: www.cnbc.com

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