Walmart dumps DEI policies, joins trend of scaling back ‘woke’ initiatives

Walmart becomes the latest and biggest company to roll back its DEI policies

Walmart, the world’s largest retailer, is implementing a series of changes to its diversity, equity, and inclusion (DEI) policies, joining a growing number of major corporations that are scaling back on what some critics label as “woke” initiatives.

The retailer confirmed on Monday that it would not renew a five-year commitment to a racial equity center established in 2020 after the killing of George Floyd. Additionally, Walmart is withdrawing from participation in a prominent gay rights index and revising its supplier diversity program by eliminating race or gender as factors in awarding contracts.

Adjustments to policies amid legal and political shifts

Walmart’s decisions come as corporate America grapples with increased scrutiny following the US Supreme Court’s June 2023 ruling that ended affirmative action in college admissions. Conservative groups have leveraged the ruling to challenge corporate DEI initiatives, including workplace diversity programs and hiring practices designed to support historically marginalized groups.

Conservative political commentator and activist Robby Starbuck has actively criticized corporate DEI policies on social media, leading to several companies, including Ford, Harley-Davidson, Lowe’s, and Tractor Supply, scaling back their initiatives. Walmart, with 1.6 million employees in the US, is the largest company to make such changes.

“This is the biggest win yet for our movement to end wokeness in corporate America,” Starbucks said on the platform X (formerly Twitter), claiming discussions with Walmart influenced its decisions.

Policy revisions

Walmart outlined several specific changes to its DEI policies:

1. Monitoring marketplace products: Walmart will increase oversight of its third-party marketplace to ensure items targeting minors, such as chest binders for youth undergoing gender transitions, are removed.
2. Pride event grants: Grants to Pride events will be reviewed to ensure family-friendly programming. For instance, Walmart wants to avoid placing family pavilions near drag shows.
3. Supplier diversity: The company will no longer use race or gender as factors in awarding supplier contracts. It has clarified that it does not use quotas and will not gather demographic data for grant eligibility.
4. Racial equity center: Walmart will not renew its $100 million commitment to a racial equity center that addresses disparities in education, health, finance, and criminal justice for Black Americans.
5. LGBTQ+ workplace index: Walmart will cease participation in the Human Rights Campaign’s annual index measuring workplace inclusion for LGBTQ+ employees.
   A spokesperson emphasized that many of these changes have been in the works for some time, including transitioning away from the term DEI in job titles and communications, instead emphasizing “belonging.”

Broader context

Walmart’s revisions come amid a political climate shaped by former President Donald Trump’s criticism of DEI initiatives and advocacy from figures like Stephen Miller, leader of America First Legal, which has legally challenged corporate diversity policies.

Despite the pushback, some Democratic leaders are urging corporations to uphold their DEI efforts. Last month, a group of Congressional Democrats appealed to Fortune 1000 companies, emphasizing that such policies ensure fair opportunities and support the American dream.

Walmart, headquartered in Bentonville, Arkansas, reiterated its commitment to fostering inclusivity, stating:

“We’ve been on a journey and know we aren’t perfect, 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.”

While some applaud Walmart’s steps, others argue that dismantling DEI initiatives may jeopardize progress toward workplace equality and inclusivity.

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