Walmart drops DEI initiatives after conservative pressure

The changes, confirmed by Walmart on Monday, are sweeping and include everything from not renewing a five-year commitment for an equity racial center set up in 2020 after the police killing of George Floyd, to pulling out of a prominent gay rights index. When it comes to race or gender, Walmart won’t be giving priority treatment to suppliers.

Walmart’s moves underscore the increasing pressure faced by corporate America as it continues to navigate the fallout from the U.S. Supreme Court’s ruling in June 2023 ending affirmative action in college admissions. Emboldened by that decision, conservative groups filed lawsuits making similar arguments about corporations, targeting workplace initiatives such as diversity programs and hiring practices that prioritize historically marginalized groups.

Separately, conservative political commentator and activist Robby Starbuck has gone after corporate DEI policies, calling out individual companies on the social media platform X. Several of those companies subsequently announced they are pulling back their initiatives, including Ford, Harley-Davidson, Lowe’s and Tractor Supply.

But Walmart, which employs 1.6 million workers in the U.S., is the largest one to do so.

“This is the biggest win yet for our movement to end wokeness in corporate America,” Starbuck wrote on X, adding he had been in conversation with Walmart.

Walmart confirmed to The Associated Press that it will better monitor its third-party marketplace items to make sure they don’t feature sexual and transgender products aimed at minors. That would include chest binders intended for youth who are going through a gender change, the company said.

The Bentonville, Arkansas-based retailer will also review grants to Pride events to make sure it is not financially supporting sexualized content that may be unsuitable for kids. For example, the company wants to makes sure a family pavilion is not next to a drag show at a Pride event, the company said.

Additionally, Walmart will no longer consider race and gender as a litmus test to improve diversity when it offers supplier contracts. The company said it didn’t have quotas and will not do so going forward. It won’t gather demographic data when determining financing eligibility for those grants.

Walmart also said it won’t renew a racial equity center established through a five-year, $100 million philanthropic commitment from the company with a mandate to, according to its website, “address the root causes of gaps in outcomes experienced by Black and African American people in education, health, finance and criminal justice systems.”

Additionally, the company said it will stop participating in the Human Rights Campaign’s annual benchmark index that measures workplace inclusion for LGBTQ+ employees.

“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,” the company said in a statement.