PepsiCo to Meet with Civil Rights Leaders Over DEI Cuts Amid Boycott Concerns
PepsiCo has agreed to meet with civil rights activist Rev. Al Sharpton and representatives from the National Action Network following public concerns over the company’s recent scaling back of its diversity, equity, and inclusion (DEI) initiatives. The move comes after Sharpton raised the possibility of a consumer boycott in response to what he called a troubling trend among major corporations.
This decision places PepsiCo among several large FMCG and Fortune 500 companies facing scrutiny for reducing DEI investments that were ramped up post-2020 amid widespread calls for racial justice. According to civil rights leaders, such cuts may signal a retreat from the commitments made in the wake of George Floyd’s murder.
Sharpton cited data indicating that corporate funding for racial equity causes declined by over 60% in 2023 compared to 2020. “If you abandon our community, don’t expect us to continue buying your products,” he said in a recent statement. The activist has demanded transparency from both PepsiCo and other industry peers regarding their current DEI strategies.
In response, PepsiCo confirmed it has maintained conversation channels with the National Action Network and expressed a willingness to engage directly with Sharpton, though no date has been set for the meeting. “We continue to be in touch with Reverend Sharpton and welcome a meeting,” the company stated.
This development follows the release of research by Ultraviolet, a gender justice advocacy organization, that tracked 20 major corporations’ DEI practices post-2020. PepsiCo was among the firms identified as reducing public reporting on DEI benchmarks and spending support less than before.
PepsiCo, which owns more than 20 food and beverage brands with more than $1 billion in annual retail sales—such as Lay’s, Doritos, and Gatorade—faces potential reputational and financial risk if consumer trust is weakened over social commitments. For FMCG leaders, this highlights the growing expectation from customers and stakeholders to sustain meaningful progress on equity initiatives, even as political and economic pressures mount.
As brands navigate evolving public scrutiny, proactive engagement and transparent DEI strategies may become pivotal in maintaining consumer loyalty and mitigating backlash in socially conscious markets.