Walmart Rolls Back DEI Policies Under Activist Pressure

On November 26, 2024By Littum

Walmart, the nation’s largest private employer, is the latest company to make changes to its diversity, equity and inclusion initiatives under pressure from a conservative activist.

The retail giant said it would not renew a racial equality center it created after the 2020 killing of George Floyd and would no longer participate in an annual benchmark index by the LGBTQ+ advocacy group Human Rights Campaign.

Robby Starbuck said he alerted Walmart last week that he was working on a “vigilance” report. According to Starbuck, the company then engaged in “productive conversations” to make changes.

“Removing vigilance from Walmart has both downstream effects on suppliers and it sets the tone for corporate America,” Starbuck told USA TODAY. “To change the normal operating policy of a nearly $1 trillion company is a gigantic feat that many have tried to achieve, but no one has actually been able to pull off until now.”

Walmart has also committed to monitoring third-party items on the Walmart Marketplace for “inappropriate sexual and/or transgender products marketed to children.” review of all Pride funding; and no longer uses the term LatinX in official communications, Starbuck said.

Walmart said many of the DEI changes were in the works for a few years and were not a result of the conversation with Starbuck. For example, Walmart said it has already changed its terminology from DEI to belong and made changes to its supplier diversity program.

“We’ve been on a journey and know we’re not perfect, but every decision comes from a place where we want to foster a sense of belonging, open doors to opportunity for all our employees, customers and suppliers and be a Walmart for everyone,” the company said in an emailed statement.

After the 2020 murder of George Floyd forced a historic showdown with race in America, companies vowed to make their workforces and their management better reflect the communities they serve.

Employees of color are underrepresented at all levels of power in corporate America, according to USA TODAY data surveys. An analysis in 2023 showed that white men account for 7 out of 10 directors in the country’s largest companies. About 1 in 7 of these companies had management teams made up entirely of white men.

But four years after those 2020 promises, the political landscape has changed. Although corporate diversity efforts are broad support by the American public—especially younger Americans—are facing growing scrutiny in the courts and in statehouses across the country as right-wing foundations, think tanks and political operatives push “race-neutral” policies.

The Supreme Court’s 2023 decision to ban consideration of race in higher education only encouraged attacks on workplace programs.

The public mood has also changed. Consumer boycotts that reduced sales forced some brands like Bud Light and Target to pull back from marketing campaigns to the LGBTQ+ community. Big brands like Ford and Lowe’s have abandoned initiatives and overtaken teams after pressure from Starbuck.

In conservative circles, the 2024 election is seen as a referendum on DEI. President-elect Donald Trump has vowed to crack down on companies that do business with the federal government.

More than 60% of business leaders surveyed by business research group The Conference Board view today’s political climate for corporate DEI as very or extremely challenging, and most expected continued or escalating pushback.

Yet fewer than 10% of organizations planned to scale back their DEI commitments over the next three years.

Advocates say DEI programs are good for business, helping companies hire and retain diverse talent and create environments that boost innovation.

But company leaders are reluctant to talk about their initiatives. Major companies, including Walmart, recently declined to make executives available to USA TODAY to discuss their DEI programs.