Walmart's decision to scale back its Diversity, Equity and Inclusion DEI program was widely praised by conservatives, but pushed back by some shareholders and Democratic officials.
The retail giant joined a growing list of companies scaling back their DEI efforts in November, following similar moves by major companies such as Harley-Davidson, John Deere and Tractor Supply.
McDonald's, Amazon, Meta, and American Airlines have since announced changes to their DEI policies, with more companies following suit.
While some investors are hailing Walmart's move as a step in the right direction, others are urging retailers to reconsider abandoning DEI.
In a letter to Walmart CEO Doug McMillon, more than 30 Walmart shareholders, with combined assets worth more than $266 billion, called the company's reversal “disappointing.” '' and asked them to explain the impact that abandoning the DEI initiative would have on business. ” Bloomberg First reported.
“It is very disappointing to see the company backing away from the values it stands for and the business opportunities associated with a diverse and inclusive workforce.” the signatories wrote.
“Furthermore, while Walmart has not made a financial or business case for this policy change, the company does promote “belonging, diversity, equity, and inclusion,” and “Walmart creates shared value.” Values we have identified as one of the four priority ESG issues that offer the greatest potential. “
Shareholders, including Amalgamated Bank, Social Justice Investor Advocacy Group and Mercy Investments, said the retail giant “ignored calls from significant segments of the public to address the risks associated with racial inequality, while He accused the company of succumbing to “bullying and pressure from anti-DEI groups.” Number of shareholders in the last two proxy seasons. ”
Investors request a meeting with Walmart executives to discuss recommitment to “DEI strategies and programs that reduce bias and systemic barriers, create inclusive workplaces, and help develop high-performing talent.” I asked.
A group of 13 Democratic state attorneys general expressed similar sentiments in a separate document. Letter sent to McMillon A day later.
Signatories include the attorneys general of New York, New Jersey, Maryland, Nevada, Rhode Island, Hawaii, Vermont, California, Minnesota, Maine, and Connecticut, and retailers It criticized the company and asked it to explain how it protects civil rights in the workplace. Walmart's decision to rescind its DEI policy.
“Threats of boycotts, lawsuits, and other negative impacts to Walmart’s bottom line may have influenced the decision to withdraw from its DEI efforts. However, we believe that Walmart is on the other side: “We are concerned about the failure to consider the customers and employees who will be marginalized,” they wrote.
“These changes are bad for business and bad for Walmart's customer base, including customers in our state,” the letter continues.
“We encourage you to reconsider the announced changes, particularly in light of your previous statements regarding the important values of diversity and inclusion.”
Asked for comment, Walmart told Fox Business: “We are the same company with the same values and the same commitment to creating a sense of belonging for all of our employees, customers and members. is committed to creating a Walmart for everyone, and we will continue to strengthen this commitment through our actions.”
John Furner, CEO and president of Walmart US, similarly announced that Walmart, America's largest retailer, will make a number of changes, including the inappropriate sale of sexual and transgender products by third-party sellers. After confirming this, he appeared on “CBS Morning” in November and defended the move. Buy kids from online marketplaces.
Walmart also stopped funding the nonprofit Center for Racial Equity, which it launched in 2020 as a five-year initiative, and completely removed the terms “LatinX” and “DEI” from official communications. announced that it would be abolished.
“Like many companies across the country, we are on a journey,” Furner said of the reversal.
“We continue to travel, and what we're trying to do is make sure that every customer, every employee feels welcome here and feels like they belong here. ”
Walmart will also no longer participate in the Human Rights Campaign Corporate Equality Index, a report that evaluates U.S. companies on their policies toward LGBTQ employees.
Fox Business' Kristine Parks contributed to this report.