Walmart, the world’s largest retailer, has made significant adjustments to its diversity, equity, and inclusion (DEI) policies, signaling a broader shift in corporate attitudes toward such initiatives, the Associate Press reports.
These changes, announced on Monday, come in the wake of a series of legal victories by conservative groups challenging corporate DEI programs aimed at supporting minority and women-owned businesses and employees.
One of the most notable changes Walmart outlined is its decision to no longer prioritize suppliers owned by women or minorities. The retailer also announced it would not renew its five-year commitment to a racial equity center, which was established in 2020 following the death of George Floyd. Additionally, Walmart pulled out of the Human Rights Campaign’s annual benchmark index, which measures LGBTQ+ workplace inclusion.
The timing of these changes coincides with the growing influence of conservative groups, particularly after the election of former President Donald Trump, who is expected to target DEI policies. Trump’s administration, under the leadership of figures like Stephen Miller, a former adviser who now leads America First Legal, has aggressively challenged DEI initiatives. This legal pressure, along with the June 2023 Supreme Court ruling that ended affirmative action in college admissions, has prompted many companies to reassess their DEI programs, fearing potential legal liabilities.
Allan Schweyer, a principal researcher at the Conference Board’s Human Capital Center, noted that companies are increasingly concerned about the legal risks of DEI programs, particularly those that may be seen as favoring certain racial or gender groups.
“There has been a lot of reassessment of risk looking at programs that could be deemed to constitute reverse discrimination,” Schweyer explained.
The changes at Walmart are part of a broader trend, with other companies such as Ford, Lowe’s, and Harley-Davidson also scaling back their DEI initiatives. Dan Lennington, a deputy counsel at the Wisconsin Institute for Law & Liberty, stated that his organization has identified over 60 federal programs it considers discriminatory, and many companies are now aligning with the legal landscape that favors individual equality over group-based initiatives.
Despite these shifts, the impact of these changes is complex. Some experts, like David Glasgow, executive director of NYU’s Meltzer Center for Diversity, Inclusion, and Belonging, argue that while some companies may retreat from visible DEI commitments, many others continue to prioritize diversity efforts, albeit quietly. Glasgow suggests that businesses should remain true to their core values, warning that sudden shifts in policy based on political pressures could make companies appear inconsistent.
Walmart’s pullback from its DEI programs has raised concerns among some civil rights groups. Marc Morial, CEO of the National Urban League, called the decision “stunning” and “unexpected,” stating that DEI policies are critical for ensuring compliance with federal anti-discrimination laws. However, Walmart maintains that it will continue to work with diverse suppliers and serve its varied customer base, even without explicit diversity goals.
Walmart’s adjustments also extend to its product offerings, with the company confirming that it will increase monitoring of its third-party marketplace to ensure it does not feature products related to sexuality and gender identity aimed at minors. These moves reflect Walmart’s attempt to balance its desire to maintain an inclusive environment with the growing legal and political pressures against DEI programs.
