NEW YORK (AP) — Walmart, the world’s largest retailer, is reversing its diversity, equity, and inclusion policies, joining a growing list of major corporations that have done the same after being targeted by conservative activists.
The changes, confirmed by Walmart on Monday, are radical and include not renewing a five-year commitment to a racial equity center created in 2020 after the murder of George Floyd at the hands of the police, to withdrawing from a prominent gay rights index. And when it comes to race or gender, Walmart will not give priority treatment to suppliers.
Walmart's measures highlight the increasing pressure that American companies are facing as they continue to navigate the consequences of the June 2023 Supreme Court ruling in the United States that ends affirmative action in college admissions. Emboldened by that decision, conservative groups have filed lawsuits with similar arguments against companies, targeting workplace initiatives such as diversity programs and hiring practices that prioritize historically marginalized groups.
On the other hand, political commentator and conservative activist Robby Starbuck has been challenging corporate diversity, equity, and inclusion (DEI) policies, calling out specific companies on the social media platform X. Several of these companies have subsequently announced that they are pulling back their initiatives, including Ford, Harley-Davidson, Lowe's, and Tractor Supply.
But Walmart, which employs 1.6 million workers in the United States, is the one that has done it the most.
"Starbuck wrote in X, 'This is the biggest victory so far for our movement to end certain overly progressive measures in American companies,' adding that he had been in conversation with Walmart."
Walmart confirmed to The Associated Press that it will better control the items it sells through third parties to ensure they do not contain sexual and transgender products targeted at minors. This would include chest binders intended for young people going through a gender transition, the company said.
The retailer based in Bentonville, Arkansas, will also review grants for Pride events to ensure they are not financially supporting sexualized content that may be inappropriate for children. For example, the company wants to make sure a family-friendly area is not next to a drag show at a Pride event, the company stated.
In addition, Walmart will no longer consider race and gender as a litmus test for improving diversity when offering contracts to suppliers. The company stated that it did not have quotas and will not have them in the future. It will not collect demographic data when determining financial eligibility for those grants.
Walmart also stated that it would not renew a racial equity center that was established through a five-year, $100 million philanthropic commitment from the company with the mandate, according to its website, of "addressing the root causes of the disparities experienced by Black and African American individuals in education, health, finance, and criminal justice systems."
And they would stop participating in the annual Human Rights Campaign benchmark index that measures workplace inclusion for LGBTQ+ employees.
"We have embarked on a journey and we know that we are not perfect, but every decision comes from the desire to promote a sense of belonging, to open doors to opportunities for all our associates, customers, and suppliers, and to be a Walmart for everyone," the company said in a statement.
The changes come shortly after former President Donald Trump's electoral victory, who has criticized DEI initiatives and has surrounded himself with conservatives who share similar views, including his former advisor Stephen Miller, who leads a group called America First Legal that has challenged DEI corporate policies. Trump appointed Miller as deputy policy director in his new cabinet.
A spokesperson for Walmart said that some of their policy changes have been in progress for some time. For example, they have been phasing out the use of the term DEI in job postings and communications, and have started using the term "belonging" instead. They have also begun making changes to their supplier program following the Supreme Court ruling on affirmative action.
Some have urged companies to maintain their DEI policies. Last month, a group of Democrats in Congress appealed to the leaders of the Fortune 1000, saying that DEI efforts give everyone a fair chance to achieve the American dream.