After Ford and Harley-Davidson, Walmart rolls back its DEI policies
What's the story
Walmart, the world's largest retailer, has announced a major rollback of its diversity, equity and inclusion (DEI) policies. The decision comes on the heels of other major corporations such as Ford, Harley-Davidson, Lowe's and Tractor Supply taking similar actions. The move comes amid growing pressure from conservative activists who have criticized these initiatives.
Policy shift
Walmart's policy changes
The sweeping policy changes at Walmart also include not renewing a five-year commitment to an equity racial center established in 2020. The company has also pulled out of a prominent gay rights index. Further, it will no longer prioritize suppliers based on race or gender. The changes come amid ongoing debates about affirmative action and diversity programs in corporate America.
Activist pressure
Conservative activists target corporate DEI policies
Conservative groups have been pushing back against corporate diversity initiatives and hiring practices, that prioritize historically underrepresented groups. Activist Robby Starbuck has been particularly vocal in his criticism of DEI policies, calling out individual companies on social media platform X. Following Walmart's announcement, Starbuck described it as "the biggest win yet for our movement to end wokeness in corporate America."
Marketplace monitoring
New approach to 3rd-party marketplace monitoring
Walmart has also promised to keep a closer eye on its third-party marketplace items to ensure they don't include sexual and transgender products for minors. This includes items such as chest binders for youth undergoing gender transitioning. The company is also set to review its financial support for Pride events, in a bid to avoid backing content that could be inappropriate for children.
Contract criteria
Walmart's stance on supplier contracts
In a major shift, Walmart will no longer consider race and gender as factors when awarding supplier contracts. The company clarified that it has never used quotas and will not collect demographic data for financing eligibility. Walmart has also opted against renewing its commitment to a racial equity center, that was established with a $100 million philanthropic pledge from the company in 2020.
Index withdrawal
Withdrawal from LGBTQ+ workplace inclusion index
Walmart has also decided to pull out of the Human Rights Campaign's annual benchmark index. The index measures workplace inclusion for LGBTQ+ employees. Despite these changes, the company insists that every decision is motivated by a desire to foster a sense of belonging and offer opportunities for all associates, customers, and suppliers.