Walmart’s recent reversal of its DEI policies has sparked criticism from shareholders and Democratic officials urging a reconsideration of the decision.
The retail giant is just one of many companies that have scaled back DEI initiatives lately. Others like Harley-Davidson and Amazon have also made similar changes.
Some investors are praising Walmart’s decision, but a significant number are urging the company to rethink its stance. Over 30 shareholders, representing more than $266 billion in assets, sent a letter to CEO Doug McMillon. They expressed their disappointment and asked for clarity on how this change would impact the business.
The shareholders pointed out that Walmart had previously identified DEI as a key issue for creating value. They accused the company of caving to pressure from anti-DEI groups while ignoring the concerns of many shareholders about racial inequity.
They want to meet with Walmart’s leadership to discuss a recommitment to DEI strategies that promote inclusivity and reduce bias. A group of 13 Democratic state attorneys general echoed these concerns in a separate letter, asking Walmart how it plans to protect civil rights in the workplace.
The attorneys general warned that the backlash from customers and employees could hurt Walmart’s business. They urged the company to reconsider its changes, especially given its previous commitments to diversity and inclusion.
In response, Walmart stated that it remains committed to creating a sense of belonging for all its associates and customers. CEO John Furner defended the changes, saying the company is on a journey to ensure everyone feels welcome.
Walmart also announced it would stop funding its Center for Racial Equity and would no longer participate in the Human Rights Campaign Corporate Equality Index. The company is making significant shifts, and it seems the conversation around DEI is far from over.
