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Walmart rolls back DEI policy under pressure from activists
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Walmart rolls back DEI policy under pressure from activists

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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 the racial equity center it created after the 2020 killing of George Floyd and that it would no longer participate in an annual benchmark index from the LGBTQ+ advocacy group Human Rights Campaign.

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

“Removing the wokeness at Walmart has both downstream effects on suppliers and it sets the tone for corporate America,” Starbuck told USA TODAY. “Changing normal corporate policy at a company worth nearly $1 trillion is a monumental feat that many have tried to achieve, but so far no one has actually succeeded.”

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

Walmart said many of the DEI changes had been in the works for a few years and were not the result of the conversation with Starbuck. For example, Walmart said it has already changed its 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 comes from a desire to foster a sense of belonging, open doors of opportunity for all of our associates, customers and suppliers, and be a Walmart for all” , the company said in an emailed statement.

After the 2020 killing of George Floyd forced a historic reckoning with race in America, companies pledged to make their workforces and leadership more reflective of the communities they serve.

Workers of color are underrepresented at every level of power in corporate America, USA TODAY data research shows. A 2023 analysis found that seven in 10 executives at the nation’s largest companies are white men. About 1 in 7 of these companies had all-white male leadership teams.

But four years after those 2020 promises, the political landscape has changed. While corporate diversity efforts are widely supported by the American public — especially younger Americans — they are facing increasing criticism 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 the consideration of race in higher education has only emboldened attacks on workplace programs.

Public sentiment has also changed. Consumer boycotts that cut sales forced some brands like Bud Light and Target to pull out of marketing campaigns targeting the LGBTQ+ community. Major brands like Ford and Lowe’s have abandoned initiatives and overhauled teams under pressure from Starbuck.

In conservative circles, the 2024 election is seen as a referendum on DEI. President-elect Donald Trump has promised 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 the current political climate for corporate DEI as very or extremely challenging, and most expect continued or escalating pushback.

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

Advocates say DEI programs are good for business because they help companies hire and retain diverse talent and create environments that encourage innovation.

But business 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.