Walmart’s recent decision to reduce its diversity, equity, and inclusion (DEI) initiatives marks a significant shift in the corporate landscape, one that may inspire other major companies to follow suit.
The retail giant’s move, announced this week, comes at a time when many US companies are already reevaluating their DEI strategies in response to growing criticism and changing public sentiments.
As the largest private employer in the United States, Walmart’s actions are likely to have a ripple effect across the business world. In particular, the company’s decision to scale back its DEI programs could prompt other firms to reconsider their own policies. Walmart’s adjustments include a review of supplier diversity programs to ensure they do not offer preferential treatment, the discontinuation of the use of the term “Latinx,” and withdrawal from the Human Rights Campaign’s Corporate Equality Index, a measure of business commitment to LGBTQ+ causes. Additionally, the company is wrapping up its five-year partnership with the Center for Racial Equity, which began in 2020.
Although some of these changes had already been underway before the announcement, they mark a public step away from certain elements of DEI that have drawn backlash. Robby Starbuck, an activist and former music producer known for his “anti-woke” stance, took credit for influencing Walmart’s decision. He claimed that his advocacy had pushed several companies, including Walmart, to scale back their DEI initiatives, and he suggested that more companies would likely follow.
However, it is important to note that many of Walmart’s diversity efforts, such as internal programs aimed at upskilling Black and Hispanic employees, will continue. These programs are seen as successful in promoting career growth within the company, even as the company moves away from some of its broader DEI language and initiatives.
Critics argue that scaling back DEI efforts could send a negative message to prospective and current workers of color. Frank Dobbin, a Harvard professor who has studied corporate diversity, noted that such moves could hinder a company’s ability to recruit a diverse workforce, especially if it appears that the company is no longer prioritizing diversity and inclusion at the top levels of leadership.
While some argue that Walmart’s approach is part of a broader reaction against what has been seen as excessive focus on identity politics, others warn that ignoring DEI concerns could undermine efforts to build a more inclusive workforce. David A. Kravitz, a professor at George Mason University, pointed out that the relationship between diversity and corporate performance is complex and cannot be reduced to simple terms of “good” or “bad.”
Walmart’s announcement also follows a broader national conversation sparked by the US Supreme Court’s decision in June 2023 to end the use of affirmative action in university admissions. The ruling, which prohibited race as a factor in admissions decisions, has been part of a wider backlash against policies that prioritize diversity, leading to increased scrutiny of corporate DEI programs.
Despite the controversy surrounding DEI policies, many experts agree that diversity remains a critical component of a successful workplace. While companies like Walmart may adjust their specific approaches, the conversation around diversity, equity, and inclusion is likely to continue evolving as businesses navigate the balance between corporate values, public opinion, and internal culture.
