Facing pressure from conservative activists, Walmart, the world’s largest retailer, is scaling back its diversity, equity, and inclusion (DEI) initiatives, following a trend among major corporations.
Walmart’s changes, confirmed Monday, are extensive. These include ending a five-year commitment to a racial equity center established in 2020, withdrawing from a prominent LGBTQ+ rights index, and ceasing preferential treatment for suppliers based on race or gender.
Walmart’s actions highlight the challenges facing corporate America after the Supreme Court’s June 2023 affirmative action ruling. Empowered by this decision, conservative groups are challenging corporate DEI programs and hiring practices, leading to lawsuits.
Conservative commentator Robby Starbuck has publicly criticized corporate DEI policies on X, prompting several companies, including Ford, Harley-Davidson, Lowe’s, and Tractor Supply, to revise their initiatives. Walmart, with 1.6 million U.S. employees, is the largest company to make such significant changes.
Starbuck hailed the changes as a major victory for his movement, noting his communication with Walmart.
Walmart confirmed to the Associated Press that it will enhance monitoring of third-party marketplace items to prevent the sale of sexual and transgender products to minors, including chest binders.
The company will also review grants to Pride events, ensuring they don’t financially support content deemed inappropriate for children, specifying a concern about family areas being adjacent to drag shows.
Furthermore, Walmart will no longer prioritize race and gender in supplier contract decisions, stating it never used quotas and won’t in the future. Demographic data will not be considered for grant eligibility.
Walmart also announced it will not renew funding for its racial equity center, a five-year, $100 million initiative focused on addressing disparities affecting Black and African American communities.
Finally, the company will discontinue its participation in the Human Rights Campaign’s corporate equality index.
Walmart stated that its goal is to foster a sense of belonging for associates, customers, and suppliers.
These changes follow former President Donald Trump’s election win. Trump, a critic of DEI initiatives, has surrounded himself with conservatives who share his views, including Stephen Miller, whose organization, America First Legal, has challenged corporate DEI policies.
A Walmart spokesperson noted some changes were already underway, such as phasing out “DEI” in job titles and communications, using “belonging” instead, and modifying its supplier program following the Supreme Court ruling.
Conversely, some groups have urged companies to maintain their DEI policies. Last month, a group of Democratic members of Congress appealed to Fortune 1000 companies, emphasizing that DEI efforts promote equal opportunity.