Coca-Cola vs Pepsi – it’s an age-old debate. But a debate that’s changed direction in 2025. It’s no longer about taste, it’s far more diverse than that. Following Trump’s rollback of Diversity, Equity & Inclusion (DEI) policies with an executive order to dismantle programmes, PepsiCo has scaled back its DEI initiatives (1) by removing its chief DEI officer role and confirmed it will no longer set representation goals for management or suppliers and its sponsorship of events now must align with its business goals.
On the flip-side of the coin, its age-old rival Coca-Cola has confirmed it is keeping DEI ‘at the heart of its values and growth strategy’ and has maintained its goals on its website. Some of PepsiCo’s employees might think Pepsi tastes quite different now, and Coca-Cola may taste a whole lot sweeter.
Navigating the Diversity, Equity and Inclusion rollback
PepsiCo is just one of many companies that have reversed their DEI policies to align to the Executive Order – many companies have followed suit – a list that we’ve seen continue to grow and the commercial impact is starting to be felt. Recently, TfL turned away Accenture’s marketing support because of their DEI rollbacks (2) and it will be interesting to see if this is the start of more to come.
The instability of the landscape is complex, with businesses approaching their rollback in different ways – some are completely changing their policies, others are ‘renaming’ their DEI strategy with one foot still in the space and others are renaming theirs to move further away from DEI.
Outside of the businesses that have aligned with the Executive Order, there are some still trying to align themselves – Disney shareholders resoundingly rejected a proposal to stop participating in national DEI reports (3). By resounding, I mean 99%. We will have to wait and see how they move forward.
Division is clear, but for global companies the challenge is more complex. Let’s remember, this is a US Executive Order and some global companies are adopting country-specific DEI strategies. Deloitte UK and USA is one (4). McDonald’s USA and UK are another.
United and Divided by the DEI Backlash?
Internal comms specialists in global organisations with local DEI strategies are likely to have some challenging waters to navigate. The magnifying glass has been on this area for some time, and the positive impact of more diverse and inclusive companies is well documented both commercially and in terms of employee engagement.
A globally fragmented DEI strategy is likely to affect employee engagement, developing challenges around such as:
Trust: ‘What do we stand for? What could change next? They said DEI was important? How can we be ‘one’ when it’s different in that country?’
Discontent: This will be felt at different levels throughout the organisation, some will feel it personally whereas others will feel for their colleagues – and this will vary country to country.
Fragmentation: Typically an organisation is united by its vision, purpose, values and goals and DEI was very much at the heart of this. Employees may feel they are facing different directions from each other.
One, or a combination of the above can impact talent attraction and retention, employee discontent and the bottom line.
Communicating DEI Programmes from Global Internal Comms Teams
The importance of a robust comms programme is paramount to employee engagement. Whilst each comms plan will differ, the starting point should be the four pillars below:
Listen: Create forums, surveys and other measures to better understand employee sentiment in both countries where they have been directly affected as well as those indirectly affected. Listening to them can help to shape the path forward.
Align: Global leaders must be aligned in their approach to avoid any confusion. Agree your core DEI strategy and how this is moulded and shaped for specific countries. A core strategy will help to retain alignment, even when its delivered differently country to country.
Be honest: Be clear, honest and open with any messaging when communicating to employees. Explaining why the changes have taken place and what this means moving forward will help to alleviate confusion and emotion from employees.
Commit: Even if formal policies are rolled back in regions, take the opportunity to consider how DEI forms part of your wider strategy and integrate it via programmes and campaigns that continue to build awareness, support employees and gain their confidence.
Tailored solutions to a complex DEI challenge
The DEI backlash very much feels in its infancy and will likely continue to evolve as time goes on. But what’s important is that your employees feel supported during these uncertain times.
Every business is different and Internal Comms approach to the rollback plays a vital role in maintaining employee engagement. Your DEI policies, values and position on the journey will be different to other organisations around you.
At blue goose, we have extensive experience in developing DEI and change and transformation programmes for our clients both globally and locally. As every business is unique, we explore, listen and recommend what’s right for your people and your business.
And only time will tell if PepsiCo employees will prefer the taste of Coca-Cola.
Image: Cottonbro Studio
Sources:
(1) https://www.raconteur.net/talent-culture/dei-rollback-listicle#:~:text=Pepsico%20dropped%20its%20chief%20DEI,its%20management%20roles%20or%20suppliers
(2) https://www.hrmagazine.co.uk/content/news/tfl-cuts-ties-with-accenture-over-dei-rollback/
(3) https://www.hrgrapevine.com/us/content/article/2025-03-21-disney-shareholders-resoundingly-reject-ncppr-call-to-drop-dei-benchmarks
(4) https://www.hrgrapevine.com/us/content/article/2025-02-12-deloitte-uk-refuses-to-sunset-dei-in-split-with-us-office-should-global-employers-brace-for-division-over-diversity
