Walmart, the nation’s largest retailer, is reportedly rolling back its diversity, equity, and inclusion (DEI) initiatives following discussions with conservative activist Robby Starbuck. The move signals a significant pivot in the company’s approach to workplace policies and social initiatives.
Key Changes to Walmart’s DEI Framework
Starbuck announced Monday on the social platform X that Walmart would make several changes to its DEI policies, including:
- Ending the use of terms like DEI and “LatinX.”
- Discontinuing partnerships with the Racial Equity Institute and closing the Racial Equity Center, which was launched in 2020 as a five-year initiative.
- Reevaluating supplier diversity programs to ensure no preferential treatment based on diversity.
Walmart’s DEI initiatives gained prominence in 2020 after sourcing $13.1 billion in goods and services from diverse suppliers. These programs were launched in response to nationwide protests following the death of George Floyd.
Shift in Product Offerings and Corporate Participation
Walmart will also adjust its product offerings and corporate engagements:
- Removal of sexual and transgender-related products marketed to children.
- Withdrawal from the Human Rights Campaign’s Corporate Equality Index, which rates corporate policies supporting LGBTQ employees.
Starbuck predicts these changes will give Walmart a competitive edge over rivals like Target and Amazon, which continue to support similar initiatives.
Advocacy Efforts and Broader Impact
Starbuck has been vocal in advocating for other major brands, including John Deere, Lowe’s, and Ford, to move away from what he describes as “woke” policies. He claims Walmart’s changes will positively affect millions of employees and position the company as a more inclusive retailer for all.
“We’ve been on a journey and know we aren’t perfect,” Walmart said in a statement to The Hill. “Every decision comes from a place of wanting to foster a sense of belonging… and to be a Walmart for everyone.”
Commitment to Small Businesses
As part of its refocused efforts, Walmart CEO Doug McMillion emphasized the corporation’s dedication to supporting small businesses. He highlighted Walmart’s “Made in the USA” program, which ensures that two-thirds of its products are made, grown, or assembled in the United States.
McMillion also pointed to the company’s annual “Open Call” event, which helps small suppliers and entrepreneurs pitch their ideas and learn how to succeed in Walmart stores. “We’re going to continue to lean into ensuring that we provide the very best pathways for small businesses,” McMillion said during a CBS interview.
Industry Reactions and Predictions
Starbuck believes Walmart’s competitors, such as Target and Amazon, will “suffer” from continuing to promote DEI initiatives and LGBTQ policies. This decision comes as DEI programs face increasing scrutiny from conservative groups, particularly in the retail sector.
Walmart’s rollback of its DEI initiatives marks a notable shift in corporate strategy, driven by external advocacy and changing consumer sentiment. While these changes may resonate with certain customer bases, they could also spark debate about the role of corporations in addressing social and cultural issues. As the holiday season approaches, Walmart’s approach may set a precedent for other retailers navigating similar pressures.
