Walmart, America’s largest private company, is changing its Diversity, Equity, and Inclusion (DEI) policies. As many companies rethink their diversity programs due to right-wing pressure, Walmart has moved in the same direction.
Walmart announced that it would discontinue racial equity training programs for employees and evaluate supplier diversity programs. For years past, Walmart has promoted businesses that are more than 51% run by women, minorities, LGBTQ or veterans, but these policies are now being reconsidered.
The company has begun re-evaluating its funding of Pride and other social events and has decided to remove advertisements selling sexual or transgender products for children from its online marketplace. Also, Walmart’s ‘Center for Racial Equity’ plan launched in 2020, which was funded with $100 million over five years to address issues in the education, health, and justice system of the African American community, will also not be carried forward.
DEI policies mainly include training employees, networking groups that promote people from diverse backgrounds, and recruitment policies that promote diversity.
It is not yet clear how exactly Walmart’s decision will affect its 1.6 million employees. According to the company’s report, more than half of its hourly workers and 42% of its management employees belong to minority groups. But Walmart’s decisions represent a major shift for other companies in the US.
“We are changing with our employees, who represent America,” Walmart said in a statement. “We are on a journey and every decision is made with the intention of creating unity among people.”
Right-wing activist Robbie Starbuck has taken credit for the changes in Walmart’s policies, having contacted the company questioning the policies. “This is the biggest victory of our movement,” he said. Walmart’s decision is followed by Harley Davidson, John Deere, and other companies. Many companies are withdrawing from DEI programs, LGBTQ support, and climate change prevention policies.
Following the killing of George Floyd in 2020, protests for racial justice led companies to place a greater emphasis on diversity policies. According to a McKinsey study, companies spent $7.5 billion on diversity programs that year.
However, in recent years, legal and political pressure has led many companies to curb their diversity policies.
In 2023, the US Supreme Court ruled that race should not be considered in admissions to educational institutions. This has led many companies to rethink their diversity policies. A reduction in DEI policies can affect employee retention and reduce their motivation. According to research by the Bastion Consulting Group, diversity strategies can improve employee retention.
Experts predict that if companies backtrack on their policies, there is likely to be a strong backlash from employees.