Walmart is being urged by dozens of shareholders, representing assets worth $266 billion, to explain the reasons behind its reversal on DEI initiatives.
In a letter sent to Walmart CEO Doug McMillon on Tuesday, investors including Amalgamated Bank of Grand Rapids and Dominican Sisters of Grand Rapids expressed their concern at seeing the company “give in to bullying and pressure by anti-DEI group.”
Walmart, the world’s biggest retailer, joined a growing number of corporations in November who have abandoned their DEI programs following attacks by conservative activists. Walmart made sweeping changes, including a decision not to renew its five-year commitment towards an equity racial centre set up in 2020 following the police killing of George Floyd. Walmart said that it will no longer consider gender or race when treating suppliers.
The investors, organized by the Interfaith Center on Corporate Responsibility (a coalition which aims to influence corporate behaviour), requested to meet with Walmart leadership to discuss the policy change, noting that they had provided data for decades illustrating business hazards associated with discrimination and inequality.
“Seeing the company retreat away from its stated value and the business opportunity associated with a diversity and inclusive workforce is extremely disheartening. Walmart has also not provided a business or financial case for the change of policy,” wrote the investors.
Walmart did not respond immediately to a comment request.
This letter is in line with an by a coalition consisting of 14 attorneys-general who also voice concern about Walmart’s DEI statement, made just weeks after Donald Trump won the election and was a vocal opponent to DEI policies.
In recent weeks, other companies have taken similar steps to wind down their DEI programs. Meta announced last week that it will end its DEI program, joining Ford and McDonald’s in the same move. In 2023, the retrenchment intensified after the Supreme Court prohibited affirmative action for college admissions. This decision emboldened anti DEI activists.
The other large companies that have shut down their DEI program are Harley-Davidson motorcycles, Lowe’s hardware store, and John Deere, actor Supply, and John Deere farm equipment.
Despite this, many companies, including Apple and target, continue to support DEI policies. Target is fighting a lawsuit filed by a conservative advocacy group claiming that the retailer misled its investors about the financial risks allegedly associated with its DEI policies.
Jeff Raikes is a board member at Costco who has praised the economic benefits of diversity in the workplace. He posted on Facebook in November, that “attacks against DEI are not just bad for business, they hurt our economies.” A diverse workforce fuels innovation, opens up new markets, and boosts growth.
Costco’s Board is recommending shareholders vote against a proposed that would dismantle the DEI program before a meeting of investors on Jan. 23, amid calls from activists , such as Robby starbuck, urging a boycott of the warehouse club.
The retailer said that a diverse workforce helps to bring creativity and originality to the merchandise we offer, while promoting the “treasure hunting” our customers enjoy.
