Walmart, the world's largest retailer, has announced significant changes to its diversity, equity, and inclusion policies, aligning with a trend seen among major corporations facing pressure from conservative activists. The company confirmed these sweeping changes on Monday, which include discontinuing a five-year commitment to an equity racial center established in 2020 and withdrawing from a prominent gay rights index. Walmart will no longer prioritize suppliers based on race or gender.
These shifts reflect the mounting challenges faced by corporate America following the U.S. Supreme Court's decision in June 2023 to end affirmative action in college admissions. Conservative groups have leveraged this ruling to challenge workplace initiatives such as diversity programs and hiring practices that focus on historically marginalized groups.
Conservative commentator Robby Starbuck has been vocal in criticizing corporate DEI policies on social media, prompting several companies, including Ford, Harley-Davidson, Lowe's, and Tractor Supply, to scale back their initiatives. Walmart, with its 1.6 million U.S. employees, is the largest corporation to make such changes.
Walmart has emphasized the need to monitor its third-party marketplace to prevent the promotion of sexual and transgender products targeting minors. The company will review grants to Pride events to ensure they do not support content unsuitable for children. Additionally, Walmart will no longer consider race and gender in supplier contract decisions and will not collect demographic data for financing eligibility.
The retailer will not renew its racial equity center, established through a $100 million commitment, aimed at addressing disparities faced by Black and African American individuals. Walmart will also cease participation in the Human Rights Campaign's workplace inclusion index for LGBTQ+ employees.
These policy changes coincide with the recent election victory of former President Donald Trump, who has been critical of DEI initiatives. Walmart clarified that some policy adjustments were already underway, such as transitioning from DEI to a focus on 'belonging' and revising supplier programs post the Supreme Court ruling.
While some advocate for maintaining DEI efforts, Walmart's decision underscores the complex landscape facing corporations as they navigate societal and political pressures surrounding diversity and inclusion initiatives.
