Walmart facing backlash over DEI policy reversal as shareholders, Dem officials urge them to reconsider

Walmart’s decision to dial back its diversity, equity and inclusion “DEI” programs was widely celebrated by conservatives, but some shareholders and Democratic officials are pushing back.The retail giant joined the growing list of companies scaling back DEI initiatives in November following similar moves from big names including Harley-Davidson, John Deere, and Tractor Supply.McDonald’s, Amazon, Meta and American Airlines have also since announced a change to their DEI policies as more companies follow suit.While some investors hailed Walmart’s move as a step in the right direction, others are urging the retailer to reconsider its abandonment of DEI.

In a letter addressed to Walmart CEO Doug McMillon, a group of more than 30 Walmart Inc. shareholders, who represent more than $266 billion in combined assets, asked the company to explain the business impact of abandoning DEI initiatives, calling the reversal “disheartening,” Bloomberg first reported.“Seeing the company retreat from its stated values and the business opportunities associated with a diverse and inclusive workforce is very disheartening,” the signatories wrote. “Additionally, Walmart has not offered a financial or business case for this change in policy, but the company identified advancing ‘belonging, diversity, equity and inclusion’ as one of four priority ESG issues that ‘offer the greatest potential for Walmart to create shared value.”The shareholders, which include Amalgamated Bank, Investor Advocates for Social Justice and Mercy Investment, accused the retail giant of giving “into bullying and pressure from anti-DEI groups” while ignoring requests “for addressing risks associated with racial inequity from a significant number of its shareholders in the past two proxy seasons.”The investors requested a meeting with senior Walmart leadership, urging them to consider a recommitment to “DEI strategies and programs that help reduce bias and systemic barriers...