PepsiCo Agrees to Talks with Al Sharpton Over DEI Concerns Amid Broader Industry Scrutiny
PepsiCo has confirmed plans to meet with civil rights leader Rev. Al Sharpton following concerns he raised about the company’s reported cuts to its diversity, equity, and inclusion (DEI) programs. The move comes as major corporations across the U.S., including in the FMCG sector, face increasing pressure to maintain DEI commitments amid a shifting legal and political landscape.
Sharpton sent letters earlier this month to PepsiCo, along with other major companies such as Walmart, Apple, and Disney, requesting detailed updates on how they plan to proceed with DEI initiatives in the wake of conservative backlash and legal challenges targeting affirmative action efforts. The outreach was coordinated through his advocacy organization, the National Action Network.
“We are alarmed by reports that Fortune 500 companies are withdrawing from their DEI responsibilities,” Sharpton said in his letter, emphasizing that such commitments were crucial in the aftermath of George Floyd’s death in 2020, when many corporations, including PepsiCo, pledged meaningful investments in racial equity.
In response, PepsiCo stated it has maintained focus on equity and inclusion, achieving 100% pay equity across gender and race in the U.S. and meeting key representation benchmarks. The company noted, however, that roles recently affected by layoffs included some DEI-related positions, reflecting broader workforce changes rather than a targeted rollback.
FMCG firms are increasingly walking a tightrope, balancing stakeholder expectations around social responsibility with evolving regulatory and legal risks. The Supreme Court’s 2023 ruling against race-conscious admissions policies has emboldened conservative groups to challenge DEI efforts in the private sector as well. As scrutiny intensifies, companies navigating marketing, hiring, and supplier diversity efforts are reassessing their public-facing strategies.
Sharpton has called for one-on-one meetings with individual companies rather than a group session to hold them directly accountable. “We want to know what they’re doing now, after making all those commitments in 2020,” he said.
Walmart has also agreed to meet, while Apple and Disney have yet to publicly respond. The outcomes of these discussions may signal the next chapter in how FMCG leaders integrate DEI goals with long-term business strategy and brand reputation management.