Rev. Al Sharpton Urges PepsiCo to Address DEI Workforce Setbacks
Civil rights leader Rev. Al Sharpton is calling on PepsiCo to reassess its commitment to diversity, equity, and inclusion (DEI) following reports of internal setbacks in its DEI leadership and transparency. In a letter addressed to PepsiCo CEO Ramon Laguarta, Sharpton voices concern over recent changes to the company’s DEI strategy and a lack of accountability in its diversity goals, signaling broader implications for FMCG companies navigating stakeholder expectations on social responsibility.
PepsiCo, one of the largest food and beverage corporations globally, reportedly eliminated its Chief Diversity Officer role and changed reporting lines for its remaining DEI executives, moving them outside of direct leadership structures. These structural adjustments have raised red flags for Sharpton and other advocacy groups, especially given PepsiCo’s earlier public commitments to racial equity in the wake of George Floyd’s murder in 2020.
“We marched with your company in 2020. We believed in the pledge PepsiCo made,” Sharpton wrote. Highlighting the potential reputational risks, Sharpton calls for clearer DEI accountability and transparency across the company’s operations. He also warned that if PepsiCo does not address these issues, the National Action Network would consider public pressure campaigns—including a potential boycott and shareholder activism.
This development reflects a wider trend across the FMCG sector, as some large corporations scale back DEI investments amid political pressures and shifting priorities. However, industry observers note that consumer expectations, particularly among younger and more diverse demographics, continue to demand socially responsible brands.
PepsiCo responded by reaffirming its DEI commitment, citing $650 million in investments toward racial equality initiatives and progress in hiring practices. However, critics argue that structural moves away from executive-level oversight could undermine these gains.
For FMCG companies, this episode underscores the importance of sustained, transparent DEI leadership—not only as a moral imperative but as a strategic business necessity. As DEI shifts into the spotlight of stakeholder scrutiny, both internal governance and external communication will be key in retaining trust and brand equity across markets.