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

The Walmart decision bring back its diversity, equity and inclusion The DEI plans have been widely celebrated by conservatives, but some shareholders and Democratic officials are pushing back.

The retail giant joined a growing list of companies scaling back DEI initiatives in November, following moves by big names like Harley-Davidson, John Deere and Tractor Supply. McDonald’s, Amazon, Meta and American Airlines have also announced changes 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 calling for the retailer to reconsider ditching DEI, a group of more than 30 people wrote in a letter to Walmart CEO Doug McMillon Walmart Inc. shareholders representing more than $266 billion in combined assets asked the company to explain the business impact of abandoning DEI initiatives, calling the turnaround “disappointing,” first Bloomberg. reports.

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On Monday, Walmart unveiled its first logo redesign in nearly two decades. (Walmart Inc.)

“Seeing a company retreat from its stated values ​​and business opportunities associated with a diverse and inclusive workforce is deeply disheartening.” the signatories wrote. Additionally, Walmart has not offered a financial or business case for this policy change, but the company has listed ‘belonging, diversity, equity and inclusion’ as one of four priority ESG issues that ‘offer Walmart an overall to create potential.”

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The shareholders, which include Amalgamated Bank, Investor Advocates for Social Justice and Mercy Investment, accused the retail giant of “bullying and pressure from anti-terrorist groups” while ignoring pleas from “a significant number of citizens at risk of racial injustice”. its shareholders in the last two proxy seasons”.

The investors requested a meeting with Walmart’s senior leadership, urging them to consider “DEI strategies and programs that help reduce bias and systemic barriers, create inclusive workplaces and advance top talent.”

An employee stacks shopping carts at Walmart on July 22, 2020 in Burbank, Calif. – The nation’s most populous state reported a record 12,807 new coronavirus infections in the past 24 hours. (ROBIN BECK/AFP via Getty Images) / Getty Images)

A group of 13 Democratic state attorneys general expressed a similar sentiment in a separate segment letter sent to McMillon a day later. The signatories, which include the attorneys general of New York, New Jersey, Maryland, Nevada, Rhode Island, Hawaii, Vermont, California, Minnesota, Maine and Connecticut, have asked the retailer to explain how it will protect civil rights in the workplace and condemn. Walmart’s decision to withdraw DEI’s policy.

“Threats to boycott, sue, or otherwise negatively impact Walmart’s bottom line may have contributed to your decision to renege on its commitment to DEI. But we are concerned that Walmart failed to consider the other side—the customers and employees who will be alienated.” : with this departure,” they wrote.

“These changes are bad for business and bad for Walmart’s customer base, including those in our states,” the letter continued. “Especially in light of your previous statements regarding the critical values ​​of diversity and inclusion, we urge you to reconsider your announced changes.”

When reached for comment, Walmart told Fox Business: “We are the same company with the same values, with the same commitment to creating a sense of belonging for all our associates, customers and members. We are focused on creating a Walmart for everyone, and we will continue to reinforce this commitment through our actions.”

CEO of Walmart USA and President John Ferner similarly defended the move in November in an appearance on “CBS Mornings” after the nation’s largest retailer confirmed it would make a series of changes, including removing sexual and transgender products from third-party merchants that improperly sold to children from its online marketplace.

It also said Walmart would end funding for the Center for Racial Equality, a nonprofit that Walmart launched in 2020 as a five-year initiative, and would drop the terms “LatinX” and “DEI” from official communications altogether.

A Walmart store is seen in Florida City, United States on May 6, 2024. (Photo by Jakub Porzycki/NurPhoto via Getty Images) (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)

“Like many companies across the U.S., we’ve been on a journey.” Führer said of a turn. “We’ll continue to travel. And what we’re trying to do is make every customer, every associate feel welcome here in the store and feel like they belong.”

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Walmart will also no longer participate in the Human Rights Campaign Corporate Equality Index, a report that rates US businesses on their policies for LGBTQ employees.

Fox Business’ Christine Parks contributed to this report.