Just as the arrival of DEI policies took America by storm, the abrupt rollback of these policies is becoming equally widespread. Reports have revealed that Walmart’s DEI policies are being scaled back entirely, as the company is no longer planning to review its five-year commitment to its equity racial center, which was initially set up in 2020.
Rampant DEI backlash in corporate America has dissuaded many businesses from maintaining these policies but Walmart’s scaling back of its diversity policies is particularly notable. This is because the retailer is the biggest employer in the U.S. to do so, with over 1.6 million workers employed under its wing. It is unclear how these changes will affect existing employees.
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Walmart’s DEI Policies are No Longer a Priority for the Company
Walmart is cutting its diversity program in a few different ways. To begin with, the company is not expected to renew its commitment to the Center for Racial Equity. This $100 million initiative began in 2020 when DEI (diversity, equity, and inclusion) policies gained popularity and became a priority for businesses both big and small. The company has also withdrawn support from a renowned Human Rights Campaign’s annual benchmark index that tracks LGBTQ+ inclusivity.
With Walmart scaling back diversity policies, the company will no longer continue with its racial equity training programs for its employees. It will also stop funding Pride and other similar events and will go on to regulate its online marketplace for any sexual or transgender products that are targeted at children.
The diversity policy rollback by Walmart in 2024 will put an end to the consideration of race and gender considerations while granting supplier contracts. The company policy had previously stated that it would only work with suppliers that were at least 51% owned or managed by a woman, a minority group member, a veteran, or someone from the LGBTQ+ community.
Not only did this ensure the continuation of Walmart’s DEI policies, but it also encouraged suppliers to promote diversity to ensure they were able to work with a big business like Walmart.
Walmart Responds to DEI Backlash by Eliminating DEI
Ever since a U.S. Supreme Court ruling in June 2023 that put an end to affirmative action in college admissions, there has been a fast-growing movement to eliminate diversity-based policies from all organizations. Political activist Robby Starbuck has largely been credited for spearheading the anti-DEI movement, pushing for organizations to put an end to diversity programs that many claim promote “reverse discrimination.”
While a Walmart spokesperson stated that the changes to the DEI policies have been in the works for a while, Starbucks has claimed credit for the change, writing on Twitter/X, “I’m happy to have secured these changes before Christmas when shoppers have very few large retail brands they can spend money with who aren’t pushing woke policies.”
The changing political climate has guaranteed that companies that retain DEI policies can expect to face excessive backlash in corporate America, and this has caused many prominent businesses to pull back from committing to such programs. Businesses like John Deere, Boeing, Ford, and Harley Davidson, are among the many who have announced an end to their DEI policy in fear of facing a boycott similar to the ones that Bud Light and Target faced last year.
“We’ve been on a journey and know we aren’t perfect,” Walmart said in a statement according to NPR, “but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers and to be a Walmart for everyone.”
Some top executives like JP Morgan’s Jamie Dimon have reiterated their commitment to DEI, but the fast-turning tides in the world of business are likely to result in more companies scaling back diversity policies, just like Walmart.
