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Walmart U.S. CEO explains the retailer’s DEI policy rollback

November 26, 2024
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Walmart U.S. CEO explains the retailer’s DEI policy rollback
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Walmart’s decision to roll back some of its diversity, equity and inclusion policies nationwide are designed to “ensure every customer, every associate” feels welcome and like they belong, according to John Furner, president and CEO of Walmart U.S.

“Like many companies all across the United States, we’ve been on a journey and we continue to be on a journey. And what we’re trying to do is to ensure that every customer, every associate feels welcome here to shop. And to feel like they belong,” Furner said in response to questions about the DEI policy decision in an exclusive interview Tuesday with “CBS Mornings.”

The changes, confirmed by Walmart on Monday after Wall Street Journal earlier reported on them, represent the end of a five-year commitment for an equity racial center set up after the police killing of George Floyd, as well as the retailer’s decision to phase out the term DEI. Walmart will also no longer give priority treatment to suppliers based on race or gender diversity, and will halt sellers from listing some transgender-related or themed items on the website.

Furner said Walmart is undergoing the changes to help foster inclusion. 

“We’re going to continue to make the best decisions we can that makes everyone – our customers, our associates – feel like this is an environment they can shop in and thrive in,” he said. 

Even so, Walmart’s decision comes amid growing pressure from conservatives to halt corporate DEI policies, which ramped up after the U.S. Supreme Court’s ruling in June 2023 ending affirmative action in college admissions. Some conservative groups have filed lawsuits making similar arguments about corporations, targeting workplace DEI initiatives as well as hiring practices that give boosts to historically marginalized groups.

Other corporations that have recently backed away from DEI policies include Ford, Lowe’s, Tractor Supply and Harley-Davidson.

When asked if diversity among suppliers remains important to Walmart, Furner turned the focus to small businesses and small suppliers. 

“We’ll continue to do the things we can do to ensure small suppliers have a path to be successful,” he said, noting that Walmart started in 1962 as a single store in Rogers, Arkansas.

Walmart is also committed to selling American-made goods, which make up about two-thirds of what the company sells, Furner said, adding, “We’re going to continue to lean into ensuring that we provide the very best pathways for small businesses, our supplies to be successful here in the store.”

How Walmart’s preparing for Trump’s proposed tariffs

Walmart will be ready for President-elect Donald Trump’s new trade policies, as the retailer’s products are mostly made within the U.S., Furner said. Even so, he acknowledged customers may see some impact on prices. 

On Monday, President-elect Donald Trump doubled down on his campaign promise, threatening to impose sweeping new tariffs on imported goods from Mexico, Canada and China – America’s top three suppliers, according to the most recent Census data –  as one of his “many first Executive Orders.”

Trump said he plans to add a 25% tariff on all Mexican and Canadian goods, as well as an additional 10% tariff on Chinese imports, which he described as part of his crackdown on drugs and immigration. He said the tariffs would stand “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! “

“We’ll adjust to any environment. We’ve been in an environment with tariffs now for the last seven years now,” Furner said, adding that they have a team of people who are responsible for managing changes in trade policy.

Furner said Walmart will do everything possible – between the suppliers and supply chain –  to keep prices low and help people save money.

“We’re going to focus on products and values,” Furner said, noting the company continues to monitor and evaluate the incoming Trump administration’s potential plans.

Jennifer Earl

Jennifer Earl is the Vice President of Growth & Engagement at CBS News and Stations. Jennifer has previously written for outlets including The Daily Herald, The Gazette, NBC News, Newsday, Fox News and more.

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