Walmart, the largest private employer across the United States, has recently announced significant shifts to its diversity, equity, and inclusion (DEI) initiatives. These changes come during increasing scrutiny of corporate policies related to social justice and follow mounting pressure from conservative activists who claim to be influencing the retail giant's direction.
Back in June 2020, following the murder of George Floyd and the nationwide push for racial justice, Walmart's CEO, Doug McMillon, had committed to take substantial action against systemic racism. At the time, he pledged the formation of the Center for Racial Equity, promising $100 million over five years to effect change within the company and its communities. But now, just four years later, the company seems to be stepping back from many of those promises.
Among the most notable cuts is Walmart's decision not to renew its Racial Equity Center, thereby concluding this significant five-year initiative. The chain also confirmed it would no longer participate in the Human Rights Campaign’s Corporate Equality Index, which traditionally scores businesses based on their LGBTQ+ policies and practices.
Robby Starbuck, a conservative commentator and social media influencer, plays a pivotal role behind this shift. He claims to have had discussions with Walmart executives, where the company expressed openness to changing its operations, responding to concerns raised about their usage of “woke” language and policies. Starbuck has become notorious for his push against what he describes as left-leaning corporate policies, previously rallying efforts against other companies like Tractor Supply Co.
Starbuck was quoted saying, "Removing wokeness from Walmart has both downstream effects on suppliers and sets the tone for corporate America. Changing the operating policies of a company nearing $1 trillion in value is a monumental achievement." His words point to the expected ripple effect these changes could have across other corporations.
Specific changes set forth by Walmart include monitoring third-party sale items on its marketplace for what they classify as “inappropriate sexual and/or transgender products marketed to children.” The company has also committed to reviewing funding related to Pride events, ensuring these do not contribute to materials deemed unsuitable for younger audiences. Publicly, the term “Latinx,” which has emerged as a culturally inclusive identifier for the Latino community, will be phased out of the company’s communications.
Despite these significant alterations, Walmart maintains these changes were already on the horizon prior to the discussions with Starbuck. They have begun shifting terminology from DEI to “belonging,” signifying what they hope will reflect a more unified approach to inclusivity.
Walmart issued a statement, confirming its commitment to cultivating inclusivity and sharpening its focus on creating opportunities for all stakeholders, saying, "We've been on a journe and know we aren't perfect, but every decision stems from wanting to promote belonging for all our stakeholders and customers."
The pushback against Walmart's DEI initiatives reflects broader cultural and political divisions concerning the role of businesses in social justice issues. Critics of such progressive stances argue they represent divisive practices, whereas supporters assert they are necessary for tackling systemic inequities.
Over the past two years, Walmart's strategic responses have brought it under the microscope from both sides of the political spectrum. Declining to maintain operational practices viewed as overly progressive could lead to backlash from many consumers supportive of DEI initiatives. Conversely, businesses perceived as embracing conservatively aligned policies may find favor among customers who prefer neutral workplaces free from divisive issues.
Walmart's altered pathway could potentially pave the way for other major retailers facing similar pressures. The activist Starbuck noted, "Companies like Amazon and Target should be very nervous since their top competitor has dropped woke policies first." His remarks underline the competition among companies to attract consumers by taking stances on controversial social issues.
Starbuck claims achieving the pivot he heralds at Walmart reflects broader movements within corporate America, where, as he states, "the era of wokeness is dying right before our eyes. The corporate atmosphere is quickly shifting toward sanity and neutrality." The changes at Walmart could signal more adjustments to come, as companies observe their peer's navigations through divided social landscapes.
It remains to be seen how Walmart's revised DEI strategies will resonate with employees, customers, and stakeholders moving forward. The potential for both positive and negative reactions highlights the complexity of tackling social agenda issues within major corporate structures.
With over 1.6 million employees and nearly $800 billion dollars in market capitalization, Walmart's alterations might influence how DEI topics are addressed across its vast supply chains and relationships with partners, signaling either the onset of broader business adjustments or simply reactive shifts sculpted by sociopolitical currents.
