MANY SPIRITS .ONE BROWN-FORMAN

 
MANY SPIRITS .ONE BROWN-FORMAN
MANY SPIRITS...

                ...ONE BROWN-FORMAN

       DIVERSITY & INCLUSION STRATEGY 2030
              GENDER & RACE EDITION
MANY SPIRITS .ONE BROWN-FORMAN
CONTENTS
 3
 INTRODUCTION

 4
                                     As a global organization, Brown-Forman has employees
                                     based in 42 countries, and markets its brands in more than
                                     170 countries throughout the world. That means
                                     employees and consumers may experience Brown-Forman
 THE BUSINESS CASE                   and its products in countless ways – because the way an
                                     individual interprets and responds to our organization is

 6
                                     highly influenced not only by their unique life
                                     circumstances, but the environment in which they live,
                                     work, and play.
 STRATEGIC POSITION                  Unfortunately, this paper – and the research embedded
                                     within it – could not accurately represent the experiences

 55
                                     of every Brown-Forman employee or stakeholder. In many
                                     cases we defaulted to using the most readily available
                                     information that likewise reflected the experience of the
                                     largest number of Brown-Forman employees: our U.S.
 STRATEGIC DIRECTION
                                     salaried workforce. By leveraging this group, and
                                     particularly its robust set of corresponding data, we were

 58
                                     able to streamline and accelerate the strategic planning
                                     process. It is our hope that the U.S. analysis is reasonably
                                     representative of many of our markets, especially our
 STRATEGIC PRIORITIES                developed markets, and as such, can serve as a reliable
                                     proxy for our global employee population.

 65
                                     As a global strategy, this document will be used to guide
                                     the company’s decisions and thinking at the highest level.
                                     However, we recognize that additional work is needed to
                                     customize the content to ensure it is truly applicable to all
 APPENDIX                            Brown-Forman’s employees around the world. In the
                                     coming months, we anticipate producing similar
                                     documents for non-U.S. populations and countries,
                                     including preparing similar analyses of in-country
                                     employees using in-country external data. The Office of
                                     Diversity & Inclusion, People Strategy & Analytics, and HR
                                     Business Partners will be valuable resources for this work,
                                     and look forward to providing ongoing support.

                                     We also recognize that diversity takes many forms, and
                                     trying to effectively tackle each aspect of diversity and
                                     inclusion in one document would be cumbersome and
                                     overwhelming. As such, we made a conscious decision to
                                     focus heavily on gender (globally) and race (specifically in
MANY SPIRITS, ONE BROWN-FORMAN       the U.S.) with this first edition of the strategy and its
                                     accompanying ambitions. Future editions will expand this
  ONE STRATEGY, MANY COUNTRIES
                                     work to other elements of diversity.

1 | MANY SPIRITS, ONE BROWN-FORMAN
MANY SPIRITS .ONE BROWN-FORMAN
D&I @ B-F: A GLOSSARY OF TERMS

In the world of diversity and inclusion, there are a multitude of terms used to describe diverse
populations. These terms differ by geographic location, legal requirements, and ever-changing
trends and preferences. For the purpose of this strategy, and conversations within Brown-Forman
going forward, the company will use the nomenclature provided below, which is consistent with the
terms used by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency that
administers and enforces civil rights laws against workplace discrimination.

Recognizing that it is difficult, or even impossible, to pick a term that addresses the preferences of
all Brown-Forman employees, the following terms will be used with only the utmost respect and
intentions:

                ASIAN                Any person having origins in the Far East, Southeast Asia, India, or the
                                     Pacific Islands. This includes individuals from China, Korea, the
                                     Philippine Islands, and Samoa. The term Pacific Islanders is sometimes
                                     used to describe a subsegment of this group.

              BLACK
                                     Any individual with origins in any of the black racial groups of Africa.
                                     Within the U.S., these individuals are also often called African Americans.

     HISPANIC                        A person of Mexican, Puerto Rican, Cuban, Central or South American, or
                                     other Spanish culture or origin, regardless of race. Other terms used to
                                     describe this population also include the gender-specific Latinos and
                                     Latinas, as well as the increasingly popular gender-neutral LatinX.

        LGBTQI+                      A person that identifies as lesbian, gay, bisexual, transgender,
                                     queer/questioning, or intersex. The plus sign (+) acknowledges that there
                                     are other terms used to describe individuals in this community (such as
                                     nonbinary and intersex).

                     POC             People of Color. A term commonly used in the U.S. to describe a group of
                                     individuals comprised of Black, Asian, Hispanic, and people comprised of
                                     two or more races. Within the U.K., the terms BAME (Black, Asian,
                                     Minority Ethnic) and BME (Black Minority Ethnic) are sometimes used to
                                     describe this group. These terms are increasingly controversial, so
                                     wherever possible Brown-Forman will use specific references to the
                                     identifying race and ethnic groups.

             WHITE                   An individual with origins in Europe, North Africa, or the Middle East.

Note: In some instances, this document may contain slight variations to account for the terminology used in source material.

                                                                                     D&I STRATEGY 2030 - GENDER & RACE EDITION | 2
MANY SPIRITS .ONE BROWN-FORMAN
INTRODUCTION
                    DEAR BROWN-FORMAN
                           COLLEAGUES:

                                         As we look to our 2030 strategic ambitions, we are pleased
                                         to introduce Many Spirits, One Brown-Forman: Diversity &
                                         Inclusion Strategy 2030 – Gender & Race Edition.

                                         The strategy adopts Brown-Forman’s strategic construct...

                                         Strategic Position: Where We Are Today
                                         Strategic Direction: Where We Are Going
                                         Strategic Priorities: How We Will Get There

                                         ...to create a foundation from which to build a more diverse
                                         workforce and inclusive culture.

                                         Thank you to our global Brown-Forman colleagues for your
                                         support of this strategy, and the work you’ve done in this
                                         space over the last decade.

                                         Because of your courageous efforts, we are starting from a
                                         position of strength. Because of your high expectations, we
                                         are focused on building our next generation company and
                                         workforce. Because of our collective abilities, we are
                                         confident that Brown-Forman will realize the true value of
                                         diversity and inclusion and create a stronger, more
                                         competitive organization where each individual has the
                                         opportunity to reach their desired potential.

                                         WE ARE MANY SPIRITS, BUT WE ARE ONE BROWN-FORMAN.

                                         Respectfully,

                                         Ralph de Chabert
                                         SVP, Chief Diversity, Inclusion, and Global Community
                                         Relations Officer

                                         Kirsten Hawley
                                         SVP, Chief Human Resources and Corporate
                                         Communications Officer

                                         Chris Graven
                                         VP, Director, Global Talent Management

3 | MANY SPIRITS, ONE BROWN-FORMAN
MANY SPIRITS .ONE BROWN-FORMAN
THE BUSINESS CASE
                                                         IT'S IN THE NUMBERS

It’s hard to ignore the numbers.

Companies with inclusive
cultures are six times more
                                             THE BUSINESS IMPACT
likely to be innovative, six times           STUDIES REPEATEDLY SHOW VALUE
more likely to anticipate                    OF DIVERSITY & INCLUSION EFFORTS
changes and respond                          ON CORPORATE PROFITABILITY
effectively, and twice as likely to
exceed financial targets.
Organizations with the highest                 6X
                                               More Likely
                                                              9%
                                                              Increase
                                                                                  19% 2X
                                                                                   Increase in
levels of gender diversity on                                                                        More Likely
                                               to be          in EBIT              Innovation        to Exceed
their executive teams are 21%                  Innovative                          Revenue           Financial
more likely to outperform their                                                                      Targets

                                               27% 33% 6X                                            21%
industry on profitability and
27% more likely to have superior
value creation. If the executive                              More Likely to      More Likely to     More Likely
                                               More Likely
team ranked among the best for                 to Have        Experience          Anticipate         to Outperform
ethnic and cultural diversity,                 Superior       Industry-           Change &           Industry on
the numbers are even more                      Value          Leading             Respond            Profitability
                                               Creation       Profitability       Effectively
impressive, with organizations
33% more likely to experience
industry-leading profitability.
Finally, companies with above-        While many organizations may have initiated diversity and inclusion
average diversity (across six         (D&I) efforts because it was “the right thing to do,” it is becoming
dimensions, including                 increasingly clear that diverse workforces and inclusive cultures are
migration, industry, career           equally valuable from a business standpoint. McKinsey & Company, a
path, gender, education, and          leading worldwide consulting firm, found that “awareness of the
age) have increases of 19% in         business case for inclusion and diversity is on the rise. While social
innovation revenue and 9% in          justice typically is the initial impetus behind these efforts, companies
EBIT (Earnings Before Interest        have increasingly begun to regard inclusion and diversity as a source
and Taxes) margins, on average.       of competitive advantage, and specifically as a key enabler of growth.”
While it is, of course, impossible
for these studies to prove            Yet, only 13% of organizations have taken the critical step in
causation, the continued              calculating the positive impact of gender diversity on the business.
correlation over multiple
research studies and numerous         We did, for various aspects of diversity, and once again: It’s hard to
companies cannot be ignored.          ignore the numbers.

                                                                               D&I STRATEGY 2030 - GENDER & RACE EDITION | 4
MANY SPIRITS .ONE BROWN-FORMAN
Let’s take a recent study from Harvard Business Review and              The following strategy will
    compare it to Brown-Forman’s business. The study found that an          guide the company on the next
    organization could increase its innovation revenue by increasing        stage of its D&I journey. By
    the diversity of its management team, with additional additive          better understanding the
    increases for having workforces with diversity of national origin,      environment in which we work,
    industry experience, gender, and career path.                           and our positioning within it,
                                                                            we can ensure that we have
    If we took the study’s logic and applied it to the entire value chain   initiatives in place to realize the
    of Jack Daniel’s Family of Brands, the impact is considerable.          true value of D&I for our people,
                                                                            our brands, our business, and
                                                                            our global community.

                                                                            Through it all, we won’t ignore
    By enhancing the diversity of                                           the numbers. They hold us
                                                                            accountable. They highlight
    Jack Daniel’s global team,                                              success (or failure). They build
                                                                            the business case.
    Brown-Forman could experience a
                                                                            But in the end, they aren’t really
    revenue increase equivalent to that                                     what matters. It all comes down
    of its premium American whiskey                                         to our people and our ability to
                                                                            bring Many Spirits together for
    portfolio.                                                              One Brown-Forman.

It is only when diverse perspectives are included, respected, and valued
that we can start to get a full picture of the world, who we serve, what
they need, and how to successfully meet people where they are.
                                                           – Brené Brown, Dare to Lead

  5 | MANY SPIRITS, ONE BROWN-FORMAN
MANY SPIRITS .ONE BROWN-FORMAN
STRATEGIC POSITION
                                                    WHERE WE ARE TODAY

Every strategic framework must      which they operate. There is no        in place to ensure companies
begin with a comprehensive          part of a business that is free        are embracing equality.
assessment of the current           from legislative impact, and           Norway was the first country
strategic position. To assess       D&I is no exception. In recent         to institute a gender quota,
Brown-Forman’s strategic            years, more and more                   passing a law in 2003 that
positioning related to D&I, we      countries are introducing              required at least 40% of public
                                    legislation that seeks to create       limited company board
examined two areas: the global
                                    a more equitable experience            members to be women by 2008.
trends impacting
                                    for all individuals. For               Eventually other countries set
Brown-Forman, and an internal
                                    example, there has been an             similar quotas, ranging from
assessment of Brown-Forman’s
                                    increase in countries                  30% to 40%, including France,
D&I strengths, weaknesses,
                                    introducing legislation that           Belgium, Germany, Italy, the
opportunities, and threats.         would permit same-sex                  Netherlands, and Spain.
                                    marriages. In 2016, Taiwanese          Australia passed the Workplace

TRENDS                              President Tsai Ing-wen
                                    campaigned on the promise of
                                                                           Gender Equality Act 2012,
                                                                           replacing the Equal
                                    marriage equality, and in May          Opportunity for Women in the
There are many workforce,
                                    2019, the Taiwanese                    Workplace Act 1999, to
cultural, economic, and
                                    government became the first            improve and promote equality
political trends impacting D&I.
                                    Asian country to legalize              for both genders. The Act
However, there are seven
                                    same-sex marriage. While               requires non-public sector
influential trends that are most
                                    many countries are making              employers with more than 100
critical to Brown-Forman and
                                    gains in this area, there is still     employees to provide reporting
its D&I initiatives over the next
                                    a great deal of progress to be         on gender equality indicators
10 years. While the trends will
                                    made. Within the U.S. alone,           such as gender composition,
highlight what is happening
                                    there are 26 states,                   pay rates, and availability of
around the world, how
                                    representing 44% of the U.S.           flexible work arrangements. In
Brown-Forman responds is up
                                    LGBTQI+ population, that do            2019, European Union (EU)
to the company.
                                    not have laws with explicit            institutions approved a ten-day

1
                                    prohibitions for                       minimum paternity leave for
    POLITICAL TENSIONS MAY          discrimination based on sexual         all EU countries, designing it as
    CAUSE SETBACKS DESPITE          orientation or gender identity,        a non-continuous leave to
    RECENT LEGISLATIVE GAINS        including Kentucky, the                increase flexibility for fathers.
                                    location of Brown-Forman’s             The U.S. is also seeing
Global organizations must stay      corporate headquarters.                increasing momentum with
in tune to the ever-changing                                               legislation, including banning
laws, regulations, and political    At the same time, some                 employers from requesting the
climate of all the countries in     countries are putting controls         salary history of job candidates

                                                                         D&I STRATEGY 2030 - GENDER & RACE EDITION | 6
MANY SPIRITS .ONE BROWN-FORMAN
to help close the wage gap for
 women and underrepresented
                                     leading to escalating tensions
                                     in the workplace and diversity                2   CONSUMERS ARE BECOMING
                                                                                       INCREASINGLY DIVERSE
 groups. As of May 2019, a total     dilemmas in organizations.”
 of 16 states and 14 local           The U.S. is not alone. A 2018                 D&I initiatives, particularly
 governments had enacted             survey from the BBC, with                     when it comes to achieving
 legislation putting restrictions    19,400 respondents across 27                  equal representation of talent,
 on this practice.                   countries, found that 76% of                  are highly influenced by the
                                     people globally believe their                 composition and trends of the
 Despite this progress, the          country is divided, with 59% of               population in the countries in
 current political climate in        the belief that it is more                    which they operate. At the
 many countries has created a        divided today than it was just a              same time, it is equally
 divisive environment that has       decade ago.                                   important for organizations to
 the potential to stall or reverse                                                 understand and mirror the
 these gains.                        Employers, therefore, are                     mindsets, preferences, and
                                     grappling with the challenges                 behaviors of all consumers so
 According to a report by the        of when to speak up and                       that they can properly market
 European Network Against            address the issues happening                  their products to an
 Racism, ethnic and religious        outside their walls, and when                 ever-changing consumer base.
 minorities and migrants             to remain silent. As employees
 continue to struggle against        demand more from their                        The population within the U.S.
 racial discrimination in the        employers (see Trend 5 on page                will continue to evolve in the
 workplace, including wage           16), the growing geopolitical                 coming years, with anticipated
 disparities, racist workplace       tensions in society are finding               changes in race/ethnicity
 incidents, job insecurity, and      their way inside the walls of                 composition occurring despite
 poor working conditions. The        organizations around the                      an overall slowdown in
 report found that European          world.                                        population growth.
 women of color are
 disproportionately affected,
 as they face discrimination
 associated with their race,
 gender, and class.
                                         U.S. POPULATION PROJECTIONS
                                         BY RACE/ETHNICITY
 Chris Stulpin with Design
 Intelligence, a business                DIVERSE POPULATIONS WILL CONTINUE TO GROW IN
 consulting firm, describes the          SIZE OVER THE NEXT 40 YEARS
 situation in the U.S., for
 example, as “a nation divided                                6%
 against itself, where after                                                                        9%
 years of conversation about the                                  13%
 need for true equality and the
 importance of inclusion, we                     61%            18%
                                                                                         44%         15%
 still fail to provide real and
                                                                   18%
 meaningful opportunity to                                                                       28%
 entire groups of people.” He
 goes on to explain how the                                                   2%    4%
 country has reached a “new
 political era where employees                          2020                               2060
 feel emboldened to express
                                                  White          Asian         Black     Hispanic    Other
 exclusionary views about
 different demographic groups           Source: United States Census Bureau

7 | MANY SPIRITS, ONE BROWN-FORMAN
MANY SPIRITS .ONE BROWN-FORMAN
U.S. population projections           “With 92% of the population          9% of bourbon drinkers – yet,
show a decrease in Whites             growth in the U.S. over the past     Nielsen research found them to
from 61% of the total                 15 years coming from ethnic          be the most likely demographic
population in 2020 to 44% in          minorities, it's important for       to prefer spirits over beer or
2060, while Hispanics                 content creators, media              wine. To increase these
increase from 18% to 28%,             platforms, manufacturers,            numbers, bourbon brands may
Blacks grow from 13% to 15%,          retailers and marketers to           adopt inclusive marketing
and Asians increase from 6%           understand their future              practices, which endeavor to
to 9%.                                success depends on their             appreciate and understand
                                      ability to appeal and market to      individuals' various identities,
The percentage of the U.S.            a multicultural world,” said         differences, and histories while
population born outside the           Andrew McCaskill, former SVP,        also illuminating places of
country is also expected to           Global Communications &              commonality.
increase during this time             Multicultural Marketing for
period. Foreign-born                  Nielsen, the information, data,      This means brands must have
individuals are projected to          and measurement company.             both breadth and depth to their
make up 15% of the U.S.                                                    multicultural marketing, no
population in 2030 and grow           This understanding could             longer relying solely on
to 17% by 2060. This is a             prove highly valuable for the        traditional multicultural
considerable increase from            spirits market, and bourbon in       marketing practices, which
the historic low of 5% in 1970        particular. Blacks, for example,     created separate campaigns
and even from 2010 when it            represent 13% of the U.S.            targeted at diverse consumers.
was 11%.                              population, but comprise only        Instead, they are best suited to

                     We believe that through diversity, we’ll make better decisions. And by
                     better understanding each other, we’ll better understand our
                     consumers.
                                 – Owsley Brown II, Brown-Forman CEO, 1993-2005, and Chairman, 1995-2007

                                                                         D&I STRATEGY 2030 - GENDER & RACE EDITION | 8
MANY SPIRITS .ONE BROWN-FORMAN
actively include multicultural       with a household income over
                                     consumers in the entire              $100,000 (compared to 41% of
                                     strategic process from               married opposite-sex couples).
                                     opportunity assessment to
                                     insight development to               Finally, from a generational
     BUYING POWER                    execution, ultimately resulting      perspective, U.S. Millennials,
                                     in products and campaigns led        whose spending power
     ESTIMATED POWER OF
                                     by the best cultural insights.       surpassed that of U.S. Baby
     DIVERSE GROUPS
                                                                          Boomers in 2018, are expected
                                     Another aspect of marketing to       to spend a total of $1.4 trillion
                                     diverse populations is               in 2020. They are also using

            $40                      understanding the purchasing
                                     patterns of consumers, and the
                                     purchasing power of specific
                                                                          their purchasing power to buy
                                                                          from companies and brands that
                                                                          fit their values. In 2017, a Weber
            TRILLION                 market segments. Women, in           Shandwick and KRC Research
            Global Women             particular, control an estimated     study found that more than half
                                     $40 trillion in worldwide            of Millennials are more likely to

            $3.8                     spending, accounting for 85%
                                     of all consumer purchases in
                                                                          buy from a company with a CEO
                                                                          who has publicly supported an
            TRILLION                 2018. This is a marked increase      issue they care about. Yet, as
            U.S. Asians,             from 2013, when they controlled      noted in Trend 5 on page 16,
            Blacks, & Hispanics      $29 trillion, or 64%, of consumer    belief-driven purchases are not
                                     spending worldwide. Even more,       necessarily a phenomenon that

            $1.4
                                     it is estimated that advancing       is isolated to Millennials, a
                                     women’s equality could increase      generation fueling many of the
                                     the global GDP by 31% by 2025,       shifts happening across society
            TRILLION                 a figure equal to the combined       and business.
            U.S. Millennials         GDP of the U.S. and China.
                                                                       The rise in buying power is

            45%
            OF >$100K
                                     The buying power of other
                                     diverse groups is also
                                                                       fueled in part by increases in
                                                                       education levels. Harvard
                                     increasing, especially within     Business Review found that
            INCOMES                  the U.S. The buying power of      women now make up more than
            Same-Sex Couples         Asians increased by 68% between   50% of university graduates in
                                     2010-2018 to $1 trillion and for  countries around the world, and
                                     Hispanics by 51% to $1.5 trillion.earn the majority of master’s
                                     Also rising is the buying power   and doctoral degrees in the U.S.
 create one overarching              of Blacks, noted at $1.3 trillion Also within the U.S., the number
 strategy that embraces the          in 2018. In comparison, all but   of bachelor’s degrees awarded
 total market (i.e. diverse          16 countries have annual          to Hispanics has more than
 audiences) while continuing         GDP of less than $1 trillion.     doubled over the ten-year period
 multicultural programming                                             from 2004-2014. Degrees
 to attract and connect with         In 2015, LGBTQI+ Americans        awarded also increased for Black
 consumers. Inclusive                had a buying power of nearly $1   students (by 46%), Asian/Pacific
 marketing takes a                   trillion, almost equal to that of Islander students (by 43%),
 cross-cultural approach and         Asian Americans. In fact, same-   and White students (by 19%)
 diversifies everything in the       sex couples have a higher median over the course of the same
 marketing process from              income than opposite-sex          time period.
 insights to execution. The          couples, with same-sex couples
 gold standard approach is to        accounting for 45% of all couples With the increase in education,

9 | MANY SPIRITS, ONE BROWN-FORMAN
more and more diverse               geographies, as individuals in
individuals will be added to the    one country may experience
corporate talent pool, or the       social, political, and economic
collection of individuals who       events that are unlike their
are qualified and able to fill an   peers in other locations. With
                                                                                 MILLENNIAL
open position. The talent pool      this in mind, it is important to
is a more reliable baseline for     note that Western generational              VIEWS ON D&I
diverse talent than the general     models, which are used in this           Deloitte study found that
population, as not all              document given                           Millennials' views differ
individuals are interested in       Brown-Forman’s workforce                  from other generations
employment opportunities or         composition, may not be
capable of meeting the              entirely applicable to a global
educational and professional        workforce. All statements
job requirements (see more in
Trend 4 on page 13).
                                    henceforth must be tested
                                    within local markets for
                                    accuracy.
                                                                                   35%
As society becomes more                                                           More likely to focus
diverse, organizations must         For the purposes of this                      on unique
continually adjust and monitor      discussion, however, the                      experiences
their marketing and talent          workforce consists of
management practices to
ensure they mirror the diverse
consumers and candidates
                                    individuals from five
                                    generations, including
                                    Traditionalists (1900-1945),
                                                                                  32%
they’re trying so hard to reach.    Baby Boomers (1946-1964),                     More likely to focus on
                                    Generation X (1965-1980),                     respecting identities

3
                                    Millennials (1981-1997), and                  when defining diversity
     THE WORKFORCE IS               Generation Z (1998 forward).

                                                                                  71%
     COMPRISED OF MORE              Millennials have surpassed
     GENERATIONS THAN EVER          Generation X as the largest
     BEFORE, EACH WITH ITS          demographic of the U.S.
     OWN VIEW OF D&I                workforce, and are projected to               More likely to focus on
                                    make up 75% of the global                     teamwork when asked
A generation is defined as “a       working population by 2025.                   about the business
group of people born around                                                       impact of diversity
the same time and raised            With each generation,
around the same place, with         preferences, beliefs,
similar influences. This affects    experiences, ideals, and
the way we look at the world        expectations shift. This means       their own expectations, rather
around us, our responses, and       employers must evaluate their        than that of their employee
expectations. [It is] a tool        employee value proposition in        base. It also means that beliefs
through which you can deduce        order to attract and retain          regarding D&I may vary
very powerful clues to begin        employees of all generations,        significantly across a single
connecting with and                 and build a D&I strategy that        workforce.
influencing people of different     includes age among its
ages.”                              definitions of diversity             These differences are evident,
                                    (alongside race, gender, veteran     for example, when you consider
Based on this definition, it’s      status, etc.). There is a risk       perceptions of public policy
not surprising that                 when the majority generation         issues facing the LGBTQI+
generational models do not          in leadership is developing          community, where Millennials
necessarily transcend               programs and policies around         and Generation Z are at the

                                                                       D&I STRATEGY 2030 - GENDER & RACE EDITION | 10
forefront of shifting opinions.      Generation X and 33% of             most desirable employers on
 A March 2019 article in Harvard      Boomers. They are also more         Glassdoor, a website for current
 Business Review found that 67%       likely to be actively engaged       and former employees to
 of U.S. young adults do not          with their organization when it     anonymously review companies
 believe a small business owner       fosters an inclusive culture        and their management.
 can refuse to provide service to     (with engagement at 83%
 LGBTQI+ customers on the basis       compared to 60% when an             According to the 2018 Deloitte
 of religious reasons, compared       inclusive culture is not            Millennial Survey, Millennials
 to only 53% of U.S. senior           fostered).                          and Generation Z employees do
 citizens/mature generation                                               not have faith in business
 (and 60% of all Americans).          It remains to be seen how           leaders’ commitment to
                                      Generation Z, which is still only   creating an inclusive culture.
 Even the way generations             a small percentage of the           The survey found that “roughly
 define D&I is different.             workforce, will view D&I. It is     two-thirds of respondents from
 Boomers and Generation X look        highly likely, however, “since      both generations not only
 at diversity as a moral and legal    diversity is the norm for Gen Z,    believe leaders simply pay “lip
 imperative that is the right         [that] it’s not a value that they   service” to diversity and
 thing to do for reasons related      particularly celebrate or even      inclusion, they also believe
 to fairness, representation, and     think a whole lot about.” It is     that only formal legislation can
 assimilation. Millennials, on        simply something they expect.       adequately advance workplace
 the other hand, are more in          A 2016 EY study of Gen Zers         diversity.”
 tune to the value that increased     employed full-time in Brazil,
 collaboration and different          China, Germany, India, Japan,       Diverse leadership teams are
 perspectives offer a business.       Mexico, the U.K., and the U.S.      viewed by Millennials to be
                                      found that respondents most         more successful, more
 With Millennials so attuned to       value employers that provide        motivating, and more
 D&I, it’s not surprising that        equal opportunity for pay and       stimulating. The Deloitte
 they are the most likely             promotion, as well as               survey found that 78% of
 generation to consider it an         development and advancement         Millennials who describe their
 important factor when                opportunities. They have            executive team as diverse also
 contemplating a job                  identified Apple, Google,           report strong profits, a
 opportunity. Forty-seven             Microsoft, Morgan Stanley,          13-point increase over those
 percent of Millennials factor        Facebook, In-N-Out Burger,          with leadership teams unlike
 D&I into their employment            StudySoup, Costco, Nike, and        the diverse society they
 decisions compared to 37% of         Nordstrom as the top ten            support. Though Boomers and

11 | MANY SPIRITS, ONE BROWN-FORMAN
Generation Xers still             has escalated rapidly. In fact,      with their employer for 13
outnumber Millennials at          the war for diverse talent may       months or more in 2016,
Brown-Forman, in many             represent the single greatest        compared to 60% of Gen Xers
organizations, Millennials are    challenge to an organization’s       in 2000. Regardless if it’s a
already among the leadership      ability to attract and retain a      generational trend, or a
ranks, holding approximately      diverse workforce.                   difference in life stage, the
20% of all leadership positions                                        simple fact remains: the
in 2017.                          The People 2025 Strategy             average tenure for workers
                                  published by Brown-Forman in         decreases substantially in
As the balance of generations     August 2016 highlights the           younger employees. The
shift within the workforce,       increasing competition for           average tenure of 10.1 years for
organizations must ensure they    talent in all sectors of the         employees aged 55-64, to 7.6
can build (or maintain) a         workforce as the labor supply        years for ages 45-54 and
culture and employee value        continues to tighten and global      4.9 years for ages 35-44, to
proposition that attracts and     trends indicate a decade-long        finally only 2.8 years of service
retains talent with               talent shortage. Among the most      for employees aged 25-34.
backgrounds and beliefs as        significant trends is the change
diverse as they are.              in workforce composition, with       As McKinsey pointed out in a

4
                                  retiring Boomers being replaced      2017 article, “everything
    THE WAR FOR TALENT            with smaller (Gen X) or less-        suggests that the war for talent
    INTENSIFIES WHEN              experienced (Millennials)            will rage on. ‘Failure to attract
    ATTRACTING & RETAINING        generations who are unable to        and retain top talent’ was the
    DIVERSE TALENT                meet the demand for executive-       number one issue in the
                                  level talent. In addition,           Conference Board’s 2016
In today’s economic climate,      Millennials are more likely to       survey of global CEOs, before
with some of the lowest           switch jobs, a 2016 Gallup poll      economic growth and
unemployment rates in nearly      found 60% of the generation is       competitive intensity.” The
50 years, the war for talent is   open to new job opportunities        article went on to share that
real – and it’s magnified         (the highest of any generation).     “employers in Europe and
exponentially when it comes       However, this may be a factor        North America will require 16
to diverse talent. As companies   of their age, not necessarily        to 18 million more college-
have begun to recognize the       their generation. A Pew              educated workers in 2020 than
significant value a diverse       Research study compared              are going to be available.
workforce can create, the         Millennials to Gen X and found       Companies may not be able to
demand for diverse talent         that 63% of Millennials stayed       fill one in ten roles they need,

                                                                     D&I STRATEGY 2030 - GENDER & RACE EDITION | 12
much less fill them with top         responsibilities, including child and eldercare. Research
 and/or diverse talent.”              consistently shows that working women continue to bear the
                                      burden of household and dependent care responsibilities, in
 The global talent shortage is        addition to carrying the “mental load” associated with each.
 further exacerbated when you
 consider a diverse talent pool,
 specifically women (at the
 manager level and above) and
 People of Color (POC).               According to LinkedIn’s 2019 Gender
 The talent pool for the U.S.         Insights Report, 71% of talent
 market was 56% male and 44%          professionals have identified gender
 female in 2018. During the
 same period, from an ethnicity       parity as a top priority for their
 standpoint, it was 82% White,        company.
 10% Hispanic, 8% Black, and 7%
 Asian. (Note: Percentages are
 rounded to the nearest whole
 number and do not equal 100%.
 U.S. policy defines “Hispanic”
 as an ethnicity, not a race,
 therefore Hispanics may be                U.S. TALENT POOL
 classified as White and/or                2018 U.S. BUREAU OF LABOR STATISTICS
 Hispanic.)
                                                The below figures represent the U.S. talent pool, or
 The talent pool also shifts by             individuals who are qualified and able to fill professional
 career level, as the percentage             roles. Additional references to talent pools are estimates
 of diverse talent will vary at                        based on additional, supporting data
 each management level within
 an organization. This is
 particularly relevant for
 gender. Because women are
 graduating at a higher rate
 than men today, the talent pool
 for professional, entry-level
 positions is greater than 50%.
                                              56%           Male
                                                                                                     44%
                                                                                                     Female
 However, women represent
 only about 35% of the senior                                                GENDER
 leader talent pool. Over time,

                                             82%                                                     10%
 this number may increase as
 these younger women mature
 into senior leadership roles,
 though it may never reach                                 White                                     Hispanic
 equal representation if
 organizations don't adjust their
 culture, processes, and policies
 to adequately accommodate
                                                   8%      Black           ETHNICITY*
                                                                                                     7%
                                                                                                     Asian
 the challenges women face in
                                         *Percentages are rounded to the nearest whole number and do not equal 100%. U.S. policy
 effectively integrating                 defines “Hispanic” as an ethnicity, not a race, therefore Hispanics may be classified as
                                         White and/or Hispanic
 professional and personal

13 | MANY SPIRITS, ONE BROWN-FORMAN
Many companies are publishing public statements and reports             Bacardi has stated its goal of
regarding their diversity objectives and progress; and while many       having at least 45% women in
start with gender, there is evidence that similar efforts are being     its workforce by 2025. Pernod
made for other diversity characteristics as well.                       Ricard, the world’s second
                                                                        largest wine and spirits
Goldman-Sachs, a leading global investment banking, securities          producer, announced on April
and investment management firm, which operates in a field               3, 2019, as part of its Good
largely dominated by White men, has committed to having 50%             Times from a Good Place 2030
representation of women in its incoming analyst class by 2021,          Sustainability and
with Blacks representing 11% and Hispanics representing 14% of          Responsibility Roadmap, that
its analyst and entry-level positions. Moreover, they have stated       its top management teams will
that they’re looking for ways to increase representation among          be gender balanced by 2022 (at
LGBTQI+, disabled, and veteran communities. Diageo, the world’s         the same time it ensures pay
largest producer of spirits, publishes an annual Gender Pay Gap         equity across the business).
Report that provides significant transparency into its gender
diversity metrics and progress. It has also made a public               Similarly, other global
commitment to having 35% of its senior leadership roles held by         companies have announced
women by 2020 and increasing the number to 40% by 2025.                 general statements regarding
                                                                        representation, yet do so
                                                                        without declaring formal target
                                                                        dates. Procter & Gamble (P&G)
   DEFINING INCLUSION                                                   issued a goal to achieve 50/50
                                                                        representation in all parts of its
                                                                        company and Coca-Cola

    in __clu sion                                                       regularly publishes its gender
                                                                        representation data while
    /in 'klooZH n/
                   e
                                                                        emphasizing its focus on
                                                                        “increasing multicultural
   Noun. The action or state of including or of being included          talent in mid- and senior-level
   within a group or structure.                                         leadership roles.”
   synonyms: incorporation, addition, encompassing
                                                                        While these bold, blanket
                                                                        statements sound impressive
                                                                        and are highly motivating,
              Inclusion, like health and happiness,                     when you dig a little deeper
              is not something that you arrive at                       into P&G’s activities, you can
              one day and say, 'We’re done!' It’s                       see that they are taking a
              something that you work at every day,                     pragmatic, multi-year approach
              a process. Inclusion happens when                         to increasing representation.
              your recruiting process casts a wider                     Its “Staff to Win” strategy is
              net for qualified candidates. It                          focused on building a pipeline
              happens when you give credit to                           of diverse talent and its 2020
              people for their ideas and                                goals are described as “sales
              contributions...Inclusion happens                         goals, to accelerate progress in
              when people in power use that power                       gender balance at all levels.
                                                                        This includes yearly targets; a
              to bring people in rather than keep
                                                                        talent pipeline with focus on
              people out.
                                           – AMBER BALDET               high potential candidates;
                                                                        holistic plans based on
                                                                        retirement outlook, historical

                                                                      D&I STRATEGY 2030 - GENDER & RACE EDITION | 14
attrition and projections; and       Millennial/Generation Z            including Brown-Forman –
    names/potential promotion            workforces, by adding new          must properly balance
    timing for [its] global talent       benefits or perks to their total   premium benefit design with
    pool.”                               rewards portfolio. For many        the need for financial
                                         employers, this includes           stewardship and cultural
    This global competition for          expanding their parental leave     relevance.
    diverse talent means that            policies to allow both women
    employers that want to attract       and men, who are expressing        As employers build their
    and retain highly skilled,           an increased desire to play a      employer brands they should
    diverse talent must work             more active role in family life,   always keep current and
    harder and smarter to find the       more time to adjust to life with   potential employees at the
    talent, get them in the door,        a new child. Among some of         center. As Jim McCoy, Vice
    and then keep them engaged           the most unique benefits           President and Global Practice
    and committed (i.e. included)        offerings recently trending        Leader for ManpowerGroup
    when other employers try to          include student loan repayment     Solutions said, “Candidates
    lure them away.                      programs, “fur”-ternity and        want to be aligned with
                                         pet bereavement leave,             organizations they feel good
    In addition to robust D&I            reproductive egg freezing, paid    about. Their personal brand is
    programs that impact the             travel, game breaks, and breast    tied to the employer they
    culture and employee                 milk shipping. While paying        work for. Candidates, like
    experience, employers are            careful attention to these         consumers, are now voting
    also looking to attract diverse      trends and employee                with their talents, as well as
    talent, and the                      preferences, employers –           their wallets.”

No one of us is as smart as all of us.
       – Brown-Forman company lore often credits this quote to W.L. Lyons Brown, Sr.
                    who was said to have a plaque with this inscription on his desk

   15 | MANY SPIRITS, ONE BROWN-FORMAN
5   EMPLOYEES &
    CONSUMERS ARE DRIVING
                                   across eight markets including
                                   Brazil, China, France, Germany,       “Social
    CHANGE THROUGH                 India, Japan, the U.K., and the
                                   U.S., also found that 67% of
                                                                         activists.
    INCREASED EXPECTATIONS
                                   belief-driven buyers bought a         Environmental
There is increasing pressure       brand for the first time
for organizations, and             because of its position on a          activists.
therefore employers, across the
world to take a stand on social
                                   controversial issue and 65%
                                   will not buy a brand that stays
                                                                         Consumer
and political issues. The recent   silent on an issue.                   activists.
rise in consumer activism –
catapulted to the mainstream       This phenomenon was evident           Activist
in large part by social media      when Nike, the U.S.-based
movements, such as #MeToo          multinational athletic                shareholders.
and Black Lives Matter – has
created an environment where
                                   footwear, apparel, and
                                   accessories company, created
                                                                         Today, there is
consumers expect companies         advertising featuring Colin           no shortage of
to publicly address issues they    Kaepernick, the controversial
have previously avoided, from      former NFL quarterback who            activists
sexual harassment and gender       first kneeled in 2016 during
discrimination to racial           the U.S. national anthem in
                                                                         affecting
injustice and immigration.         protest against racial injustice      business
                                   and police brutality. The ad,
While companies may have           which ran as part of Nike’s           operations in
shied away from controversial      30th anniversary celebration in
issues in the past, it is          2018, resulted in a 30%               some way.
becoming increasingly
difficult to do so. Recent
                                   increase in sales and a spike in
                                   social media posts nearly 50
                                                                         These stand-up-
research suggests that             times Nike’s average rate.            for-what-
consumers are starting to
“speak with their pocketbooks”     These belief-driven buyers are        is-right
and spend their money on the       not confined to one market,
brands and companies that          one generation, or one income         campaigners
align with their own values and
beliefs. In 2018, Edelman, one
                                   level – consumers across all
                                   markets, generations, and
                                                                         may either be
of the world’s most respected      income levels are buying              an employer’s
communications firms,              brands that align with their
published the Edelman Earned       beliefs. The challenge for            best advocates
Brand Study that found “nearly
two-thirds of consumers
                                   organizations and brands,
                                   however, is determining what
                                                                         or its worst
around the world now buy on        issues are most important to          opponents. In
belief, a remarkable increase of   their core target audience,
13 points since 2017. These        since beliefs themselves may          either case,
‘belief-driven buyers’ will        differ dramatically. When you
choose, switch, avoid, or          take a position on an issue, it       they are change
boycott a brand based on where
it stands on the political or
                                   stands to reason that you are
                                   just as likely to gain favor with
                                                                         agents.”
social issues they care            buyers as you are to alienate
about.” The study, which           those that fall on the opposite               – Weber Shandwick
surveyed 8,000 respondents         end of the belief spectrum.

                                                                       D&I STRATEGY 2030 - GENDER & RACE EDITION | 16
In Nike’s case, it understood its   (at 57%), business (at 56%), and
                                      core target audience, which         the media (at 47%).
                                      skews disproportionately
                                      younger and more liberal.           This trust is granted with the
                                      According to Entrepreneur           expectation that the employer-
                                      magazine, “Surveys show that        employee relationship is built
                                      younger, liberal audiences          on more than just traditional
         EDELMAN                      prefer companies to take a          components like job
          TRUST                       stance on important issues...so     opportunities. In fact, 67% of
        BAROMETER                     the brand had good reason to        the responding employees
                                      believe that a bold, politically-   expected “prospective
       The 2019 study found           minded ad would ultimately          employers will join them in
       that employees place
                                      have a positive impact on its       taking action on societal issues”
        significant trust in
                                      core audience.” When featuring      and 71% believe it’s “critically
        their employer, and
                                      Kaepernick, Nike was speaking       important for ‘my CEO’ to
             have high
                                      to its core long-term consumer,     respond to challenging times.”
           expectations
                                      rather than a vocal, but less       This expectation is consistent
                                      valuable, secondary consumer.       with the general population,
                                                                          with 75% looking to CEOs to
                                      Interestingly, another study        lead change versus waiting for

        75%
        Trust their employer
                                      from Edelman highlights how
                                      these changing consumer
                                      expectations may impact
                                                                          the government to take action.

                                                                          The potential rewards for
                                      organizations from an employer      building trust are significant.
        to do what is right           perspective. The 2019 Edelman       Employees who have strong
                                      Trust Barometer, the                trust in their employers report

        71%
                                      company’s 19th annual trust         higher levels of engagement,
                                      and credibility survey that         loyalty, advocacy, and
                                      captured the sentiments of          commitment. So, similar to the
        Believe it's critically       33,000 respondents in 27            consumer perspective,
        important for their           markets, found that “trust has      organizations must determine
        CEO to respond to             changed profoundly in the past      what issues are important to
                                      year” with 75% of global            their employees, and find the
        challenging times
                                      respondents trusting their          best way to address them in a

        67%
                                      employer to do what is right over   way that builds trust, creates
                                      nongovernmental organizations       engagement, and drives growth.

        Expect employers
        will join them in             “We are committed to creating a fully inclusive and
        taking action on              diverse workforce and we strongly believe that
        societal issues               businesses play a significant role in shaping the future
                                      of society. Global businesses like Diageo must make

        47%
                                      bold moves on policies and the environments in which
                                      their employees work to ensure that the progress
                                      people deserve happens.”
         Trust the media to
                                           – Mairéad Nayager, Diageo’s Chief HR Officer explaining the
         do what is right                company’s global roll-out of a 26-week parental leave policy as
                                               part of its goal to create an inclusive, diverse workforce

17 | MANY SPIRITS, ONE BROWN-FORMAN
6
    TECHNOLOGY IS                  than 12 million posts,               While much of the impact of
    ACCELERATING D&I               comments, and likes. The             #MeToo was played out in the
    CONVERSATIONS, WHILE           hashtag even transcended             media headlines, it impacted
    SUPPORTING TALENT              cultures and countries,              the corporate boardrooms as
    MANAGEMENT                     becoming #YoTambien in               well. According to the U.S.
    PRACTICES THAT                 Spain, #BalanceTonPorc in            Equal Employment
    ADVANCE D&I OBJECTIVES         France, #WoYeShi in China,           Opportunity Commission,
                                   #QuellaVoltaChe in Italy,            claims of workplace sexual
Just as technology has touched     among others. As the                 harassment increased more
almost every industry and          movement continued over the          than 12% in its 2018 fiscal year
changed every human                coming months, it would be           and it recovered $70 million
interaction and experience, it     credited with the “fall” of some     from corporations for victims
has been a driving force           of the world’s most well-known       of sexual harassment (up from
behind the recent acceleration     businessmen, journalists, and        $47.5 million the year prior).
of D&I movements and               celebrities, including Harvey
conversations.                     Weinstein and Matt Lauer.            Furthermore, employees can

The invention and explosion of
social media, in particular, has
changed the speed and manner
in which people communicate,
given a voice and platform to
any individual with access to
the internet, and ensured
messages can reach people
24 hours a day, seven days a
week, 365 days a year, all
across the world.                     Placeholder:

The #MeToo movement, in
particular, illustrates the
                                      Table: 2018 U.S. Bureau of Labor Statistics -
power of social media and its         Management, Business and Financial
ability to create a global
                                      Operations Occupations
phenomenon, raise awareness
and advocacy, and drive
change. The movement started
with a single tweet from
actress Alyssa Milano, who was
inspired to take action by the
experience of Tarana Burke, a
civil rights activist. Milano
used her social media presence
to rally all victims of sexual
harassment or assault through
use of the hashtag #MeToo.
According to Facebook, in the
24-hour period after Milano’s
tweet, the hashtag was used by
more than 4.7 million people
worldwide and generated more

                                                                      D&I STRATEGY 2030 - GENDER & RACE EDITION | 18
use social media platforms           their margins, and grow the        demands and needs of today’s
 (e.g. Facebook, Instagram, and       business. As the Brown-Forman      workforce and the workforce of
 Twitter) and technology to           People 2025 strategy points        the future.

                                                                         7
 increase awareness for issues        out, “digital disruption and
 of importance to them,               social networking have                  ORGANIZATIONS &
 potentially creating a public        changed the way organizations           INDIVIDUALS ARE MOVING
 relations and legal nightmare        hire, manage, and support               ALONG THE D&I CONTINUUM
 for the organizations they           people.”                                AT DIFFERENT PACES IN
 target. Google employees, for                                                DIFFERENT PLACES
 example, conducted a massive         It goes on to say, “Data can
 international walkout in             identify what attracts and         While the business case for D&I
 November 2018 to boycott the         retains employees, what drives     has made it a key strategic
 company’s approach to sexual         strong performance, which          imperative for many
 harassment and general               employees will be successful,      organizations across the world,
 fairness with five demands           what makes the best leaders,       the reality is that many
 related to sexual misconduct,        and what capabilities are          organizations – and the
 pay equity, and the reporting        required to deliver high-quality   individuals within them and
 relationship of the chief            customer service and               the countries in which they
 diversity officer.                   innovation...Technology can        operate – are at vastly different
                                      also help companies meet           places on their D&I journey.
 Employees are using                  employee expectations for          Even more, the continuum
 mainstream social media              flexibility by simplifying         looks different for each aspect
 channels while also leveraging       remote work, facilitating          of diversity. It is quite possible,
 platforms designed specifically      collaboration of remote teams,     and even highly likely, that
 to evaluate employers.               and reducing costs.” This may      individuals and organizations
 Glassdoor, for example,              even include deploying tools       sit at different places on the
 receives 64 million unique           specifically designed to combat    spectrum for one aspect of
 visitors per month. On any           D&I obstacles, from the free       diversity, say gender, while
 online platform, individuals         GenderDecoder, a simple site       being at a completely different
 are much more raw, more              that identifies potentially        place for another aspect, such
 honest, and more transparent         biased language in job ads and     as sexual orientation and
 in their beliefs and opinions        job descriptions, to the more      identity. Complicating this
 than in traditional face-to-face     sophisticated Greenhouse, a        reality further, the ideas,
 communications. In fact, our         comprehensive talent               concepts, mindsets, and
 society is becoming so               acquisition platform with an       experiences regarding
 accustomed to people,                inclusion offering that reduces    diversity characteristics are
 including political leaders,         unconscious bias across the        constantly shifting and
 speaking out in ways that were       entire hiring process. This        adjusting, thus making the
 previously considered taboo          means that employers that          journey a continuous,
 that many worry we will              effectively leverage advances      never-ending process.
 become desensitized to hateful,      in technology may have a
 divisive rhetoric.                   competitive advantage in the       Early adopters of D&I strategies
                                      war for talent. They will be       were heavily focused on
 At the same time, however,           better equipped to identify and    diversity, or “the mix” of
 technology –and the massive          build connections with diverse     people in an organization. As
 amount of data it has                talent, design people              efforts evolved, the focus has
 generated – can help employers       management capabilities that       shifted to inclusion, or
 enhance their D&I efforts,           grow strong, inclusive leaders,    “making the mix work.”
 support their talent                 and provide a culture and          Organizations have realized
 management practices, protect        infrastructure that meets the      that it isn't sufficient to get

19 | MANY SPIRITS, ONE BROWN-FORMAN
diverse talent in the door, they   growth won’t happen.”                 The first step is raising
needed to focus on the                                                   awareness to the concept of
employee experience. They          To achieve inclusion objectives,      privilege and doing so in a way
must create an environment         organizations must support            that encourages healthy, open
and culture where each             employees in their individual         dialogue. This is critical
individual – regardless of         journeys by creating the              because “whenever a power
gender, race, nationality,         organizational structure,             structure feels under threat, it
sexual orientation, religion, or   employee programs, and                is likely to resist. History has
any other diversity                leadership tools that can move        proven this repeatedly;
characteristic – feels truly       employees along the diversity         advances in equal rights are
valued, respected, and             continuum. According to               almost always met with a
supported. Additionally, they      Harvard Business Review, this         pendulum swing of backlash.”
are also aware of the              means “today’s diversity
importance of metrics and          challenge isn’t getting more          For example, Harvard Business
accountability to ensure           people to adapt to obsolete           Review points out that “many
progress towards inclusion         norms of leadership...the             white people avoid
outcomes. As Harvard Business      challenge is to get all managers      conversations about race out
Review stated, “without            – and especially current              of fear of ‘saying the wrong
inclusion, however, the crucial    leaders – skilled and ready to        thing.’ And many POC in
connections that attract           lead vastly more diverse              predominantly white
diverse talent, encourage their    businesses and respond to             companies may avoid these
participation, foster              increasingly diverse customer         conversations out of fear of
innovation, and lead to business   groups.”                              being seen as a complainer,

               I think diversity is a hallmark of the last 20 to 25 years of
               Brown-Forman. And I expect it to be a foundation for the next 20 years too.
                                              – Paul Varga, Brown-Forman President and CEO, 2005 - 2018

                                                                      D&I STRATEGY 2030 - GENDER & RACE EDITION | 20
or worse. But pretending the         themselves and their                Also important is recognizing
 elephant in the room isn’t           colleagues. With an agile work      that diversity isn’t confined to
 there won’t make it go away.”        environment and six employee        characteristics that are readily
                                      resource groups, we provide         visible to the eye (such as race,
 One common element of many           our employees with an               gender), or common in D&I
 D&I strategies that helps to         environment where they can          conversations (such as sexual
 facilitate conversations is the      thrive and succeed in.”             orientation, gender identity or
 creation of employee resource                                            expression, and/or veteran
 groups (also called ERGs, or         While ERGs and other                status). Equally important is
 affinity/business network            employer efforts targeted at        “cognitive diversity,” or the
 groups), or groups of                D&I are a critical step in the      differences in perspectives and
 employees who join together          journey, change will also           processing styles, and
 in their workplace based on          require shifting the mindsets       “neurodiversity,” or the
 shared characteristics or life       of individuals to ensure lasting    recognition that differences in
 experiences. These groups,           impact will be realized. As         neurological functioning
 which are traditionally started      Michael Kimmel, a sociologist       should be respected and
 independently by employees,          at Stony Brook University who       treated the same as any other
 serve as a venue for diverse         specializes in gender studies,      human differentiator. In fact, a
 talent to discuss career             pointed out in his TED Talk         number of organizations are
 development opportunities            entitled Why Gender Equality        already developing
 and challenges, build networks,      is Good for Everyone,               recruitment campaigns to hire
 create advocacy and                  “privilege is invisible to those    neuro-diverse talent into
 awareness, and eventually            who have it” and “making            positions for which their skills
 drive true cultural change           gender visible to men is the        are particularly beneficial. Yet,
 within their organizations. In       first step in engaging men to       “to be successful, the
 addition, because ERGs are           support gender equality.” The       organization needs to make it
 open to everyone – not just          same is true for race, for          ‘safe’ for associates to try new
 those employees that belong to       sexual orientation, for             things in new ways without
 the particularly affinity group      religion, for marital and           fear of repercussions.”
 they support – they can              veteran status, and every other
 increase cultural competency         aspect of diversity that makes      Organizations that want to
 across the organization. Nike,       individuals unique.                 create inclusive cultures – and
 for example, has a collection of                                         ultimately retain the diverse
 ERGs under the NikeUNITED            Sometimes this even requires        talent they are able to attract –
 brand that includes eight            navigating environments             must stay on the front lines of
 Employee Networks focusing           where the laws of a country         the diversity conversations
 on employees of various              work against both the               while ensuring they have the
 abilities, race, ethnicity, sexual   organization’s D&I objectives       strategy, structure, and
 orientation, veteran status,         and personal values and             processes in place to bring
 and gender.                          beliefs. This is the case for       their leaders and employees
                                      LGBTQI+ rights, which is            along on the journey.
 This emphasis on inclusion           complicated by the fact that in
 through ERGs is also evident in      some countries, including
 the diversity model of Pernod        many in which Brown-Forman
 Ricard. The company’s website        operates, it is illegal to be gay
 states, “We believe in               or even talk about LGBTQI+
 championing an inclusive             topics. The spectrum is vast,
 culture that embraces                from being punishable by
 differences and encourages           death in some locations to
 employees to challenge               marriage equality in others.

21 | MANY SPIRITS, ONE BROWN-FORMAN
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