Coca-Cola, PepsiCo Planning to Comply With Trump’s DEI Policy

Coca-Cola Co. and PepsiCo Inc., both government contractors, are preparing to comply with President Donald Trump’s executive order banning diversity, equity and inclusion programs, according to people familiar with the matter.

Coca-Cola, which provides beverages on military bases and in other government facilities, will adhere to the administration’s directive, according to a person familiar with the matter who wasn’t authorized to speak publicly. The company is likely to disclose any changes in forthcoming filings with the Securities and Exchange Commission, the person said.

Asked earlier this week whether the company is changing its DEI policies, Coca-Cola Chief Financial Officer John Murphy said the company is “focused on having the best talent around the world,” but he added it will “of course, follow any change in regulations at the national level.”

PepsiCo, also a federal contractor that sells food and beverages to government-funded facilities, will comply with the order, said a person familiar with the matter who wasn’t authorized to speak publicly. In its annual filing with the SEC last week, the company removed references to “diversity, equity and inclusion” and its “diverse workforce.”

Companies from all industries are reacting to Trump’s directives to dismantle DEI initiatives. Trump has ordered the heads of government agencies to find ways to end “illegal DEI discrimination and preferences” in the private sector and identify as many as nine private institutions for potential investigations.

Changes could represent a sharp pivot for both companies. On its website, Coca-Cola says that DEI is “at the heart of our values and our growth strategy and play an important part in our company’s success.” It lists goals such as having women hold 50% of senior leadership roles by 2030 and having its US workforce reflect “national census data at all levels.”

PepsiCo has aimed to achieve gender parity for management positions while increasing Black and Hispanic representation in management to 10% by 2025, according to its website. In 2020, the company said it was investing $570 million in Black and Hispanic communities to increase representation in its partnerships and supply chains. That program is set to end this year.

Photo: Photographer: Carla Gottgens/Bloomberg

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