Walmart rolls back DEI policies amid pressure from activists

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

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

Robby Starbuck said he warned Walmart last week that he was working on a report on “wokeness.” According to Starbuck, the company then had “productive discussions” to make changes.

“The removal of vigilance at Walmart has both downstream impacts on suppliers and sets the tone for corporate America,” Starbuck told USA TODAY. “Changing the normal operating policies of a nearly $1 trillion company is a monumental feat that many have attempted, but so far no one has succeeded.”

Walmart 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 to stop using the term LatinX in official communications, Starbuck said.

Walmart said many of the DEI changes have been in the works for several years and were not the result of the conversation with Starbuck. Walmart, for example, said it had already switched terminology from “DEI” to “belonging” and made changes to its supplier diversity program.

“We have been on a journey and know we are not perfect, but every decision is based on the desire to foster a sense of belonging, open doors for all of our employees, customers and suppliers, and be a Walmart for everyone,” the company said in an emailed statement.

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After the murder of George Floyd in 2020 forced a historic reckoning on race in America, companies committed to better aligning their workforce and leadership with the communities they serve.

Employees of color are underrepresented at all levels of power in American companies, according to USA TODAY data research. A 2023 analysis found that seven out of 10 executives at the nation’s largest companies are white men. About one in seven of these companies had leadership teams made up entirely of white men.

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

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

Public opinion has also changed. Consumer boycotts that led to lost sales forced some brands like Bud Light and Target to pull back from marketing campaigns aimed at the LGBTQ+ community. Major brands like Ford and Lowe’s have abandoned their initiatives and overhauled their teams under 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 executives surveyed by business research group The Conference Board believe today’s political climate for enterprise DEI is very or extremely challenging, and most expect continued or escalating setbacks.

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