Walmart shareholders are urging the company to reconsider and adjust its approach to DEI (Diversity, Equity, and Inclusion) initiatives.
In November 2024, the company, which has 1.6 million workers, announced it would be scaling back on its DEI policies, notes AP News. They join a list of companies, including Amazon, McDonald’s, and Meta.
“We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers, and suppliers, and to be a Walmart for everyone,” Walmart said in a statement, according to AdWeek.
Walmart’s shareholders, which consist of over 30 individuals, admit to feeling “deep disappointment” in Walmart’s stance. They want to uphold Walmart’s work in DEI as it has led to a sense of belonging for associates, and “when associates feel like they belong, they’re more engaged and empowered to deliver great service to our customers and members.”
Its shareholders hope Walmart will correct its decision to separate from DEI efforts and have issued a letter to Walmart CEO Doug McMillon.
“From both a moral and a financial perspective, it is extremely disappointing to see Walmart roll back its commitment to advancing DEI within its workforce and operations. DEI initiatives aren’t just ‘nice to have’; they are essential to breaking down the systemic inequities hindering our economy and preventing society from fully thriving. Inequity is bad for business and, ultimately, investors,” said Caroline Boden of Mercy Investment Services, principal author of the letter and one of its 31 signatories, in a news release shared with AFROTECH™.
Walmart, along with other companies, is succumbing to the pressures of right-wing groups. CNN credits Activist Robby Starbuck with reaching out to various companies to reconsider their footprint around diversity programs.
“It’s worrying for shareholders because management appears to be swayed by threats from internet trolls who are already crowing about their success,” said CEO of SHARE Kevin Thomas, who has signed the letter. “That just emboldens others to do more of the same. So, what other value-creating initiatives will management be willing to give up because of online bullying?”
Costco and Apple have gone against the grain, and their shareholders have requested that their company board of directors vote against any policies that would dismantle DEI policies and commitments. Walmart retracting its stance would send a resounding message to the landscape, as it serves as the largest private employer in the U.S., and half its employees and 42% of its management are people of color, per CNN.
“Walmart’s power and influence cannot be overstated. As the largest private employer in the U.S. with an enormous list of suppliers worldwide, Walmart’s actions on so many issues of societal importance will be widely scrutinized and emulated by other companies for years to come. Extensive research demonstrates that strong DEI policies enhance companies by promoting diverse leadership, building a more adaptable workforce, and fortifying supply chains. “We will ask CEO McMillon and the Walmart board how they wish to be remembered, as a principled voice of moral and ethical business practices and an upholder of civil rights, or the cowed voice of submission and complicity with bullies dealing in intolerance and hate,” said signatory Rev. Séamus Finn of the Missionary Oblates of Mary Immaculate, a global leader in faith-based and socially responsible investing.
