NEW YORK CITY, New York: Walmart, the world's largest retailer, is rolling back its diversity, equity, and inclusion policies.
It joins a growing list of major corporations that have done so after being attacked by conservative activists.
The changes, confirmed by Walmart this week, are sweeping and include everything from not renewing a five-year commitment for an equity racial center set up in 2020 after the police killing of George Floyd to pulling out of a prominent gay rights index. And when it comes to race or gender, Walmart won't be giving priority treatment to suppliers.
Walmart's recent decisions highlight the mounting challenges corporate America faces in the wake of the U.S. Supreme Court's June 2023 ruling that ended affirmative action in college admissions. Inspired by this decision, conservative groups have launched lawsuits targeting corporate diversity initiatives and hiring practices that prioritize historically underrepresented groups.
Conservative commentator and activist Robby Starbuck has been vocal in opposing corporate DEI (Diversity, Equity, and Inclusion) policies, using the social media platform X to single out companies. Several, including Ford, Harley-Davidson, Lowe's, and Tractor Supply, have since scaled back their initiatives. Walmart, the largest U.S. employer with 1.6 million workers, has now joined this trend, making it a significant development in the debate over corporate "wokeness."
"This is the biggest win yet for our movement to end wokeness in corporate America," Starbuck posted on X, noting that he had discussed these changes with Walmart.
Walmart, headquartered in Arkansas, confirmed several policy shifts to The Associated Press. Among them, the retailer will more closely monitor third-party marketplace products to ensure they do not include items like chest binders aimed at minors undergoing gender transitions. The company will also review grants to Pride events, ensuring family-friendly programming is separate from sexualized content, such as drag shows.
Walmart also announced it would no longer factor race or gender into decisions about supplier contracts or use demographic data to determine grant eligibility. The company emphasized it has never used quotas and will not do so in the future.
Additionally, Walmart will discontinue a racial equity center it established through a $100 million philanthropic initiative. The center was designed to address systemic disparities in education, health, finance, and criminal justice for Black Americans. It also plans to stop participating in the Human Rights Campaign's workplace inclusion index for LGBTQ+ employees.
These changes align with broader political trends. Former President Donald Trump's recent election victory has emboldened critics of DEI initiatives. Trump, who has consistently opposed such policies, has surrounded himself with conservatives like Stephen Miller, leader of America First Legal, which has challenged corporate DEI programs.
Walmart's spokesperson clarified that some of these changes were already in progress. For instance, the company had begun phasing out the term "DEI" in favor of "belonging" in job titles and internal communications and revising its supplier diversity program following the Supreme Court's ruling.
Despite these developments, there are calls for companies to maintain their DEI commitments. A group of Congressional Democrats recently appealed to Fortune 1000 leaders, arguing that such efforts ensure equal opportunities and support the American dream.