Fanning the Flames of Innovation: Legendary Story Highlights The Business Case for DEI
With so much conjecture about DEI in the media, real-life faux pas, and missteps in major corporations, we can easily see the distinction between organizations lighting the fire and others fanning the flames. Organizations can utilize DEI strategically to ignite innovation and endless possibilities or proceed without a solid strategy reinforcing mediocre cultures and unremarkable business results. .
Pepsico is an organization that blazed a trail for successful diversity, equity, and inclusion and is the focus of the intriguing new movie Flamin' Hot. Flamin' Hot will debut simultaneously on Hulu and Disney on June 9th. This story had a lot of buzz before movie producers decided to tell it. It was a legend often retold in the DEI industry for years. Now the world will see how innovation was influenced by diversity that was seen, heard, valued and implemented. This ultimate recognition led to breakthrough innovation that changed the snack industry with a sizzling hot flavored Cheeto. There has been some back and forth about the story's legitimacy, but the concept of one employee sharing a recipe from his cultural background as a change agent isn't something to shrug off. Why? Because if organizations create an environment based on respect, safety and inclusion, billion-dollar inventions, ideas, and answers can show up in a warehouse or at a desk, changing the trajectory of the boardroom, and increasing profitability. This concept is precisely why the business case for DEI is so critical to understand.
However, Pepsico built its DEI philosophy on something beyond a one-hit-wonder. PepsiCo has led the charge for years as an igniter of diversity, inclusion and belonging. They began extinguishing inequities in the 1940s when they hired a Black sales force to market their soda directly to the African-American community. They decided to be a brand that understood the importance of knowing their customer base and integrating the community they served into their workforce. In the next decade, they appointed a woman on their board, and in the sixties, they hired the first Black VP of a multi-national company. They were fearless in kindling equitable opportunities in key areas, which went against the grain of the times. So, it is no surprise that, by the 1980s, they participated in multicultural marketing efforts .
How has their DEI strides affected their business? A quick review of the beverage and snack behemoth’s stock price performance over the last 50 years shows relative flatness until the early 1990s when a sharp incline began. It is interesting how their stock performance began to peak roughly a decade after significant investments in multi-cultural consumers. PepsiCo stock's closing price in May of this year closed at $196.12; their all-time high. This is impressive during times of downturns, bankruptcies and businesses closing. We celebrate PepsiCo’s commitment to DEI, focus on partnerships and community, and efforts to offer their employees a space to be themselves. Forbes
While no organization is perfect, Pepsico is a good example of how sustained progress with intentionality is almost always a recipe for success; you get to decide your level of spice tolerance. At KEIRUS BY KJE, we like it hot, flamin’ hot.
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